Tracking the Impact
of COVID-19
To help you stay informed on the latest developments, Mortenson
is rounding up the best research and news insights about
the ways COVID-19 is impacting the construction industry
and the market sectors we serve.
POSSIBLE IMPACTS FOR YOUR INDUSTRY
We are updating content each day, so check back here frequently to stay on top of the most recent news.
10.14.2020
Pandemic Speeds Shift to Cleaner Energy
[article paywall] Wall Street Journal
The world’s transition to cleaner sources of energy is gaining speed as the coronavirus pandemic accelerates a shift in investment away from fossil fuels, according to the International Energy Agency. Solar and wind projects are benefitting from falling costs, widespread government support, and monetary policies that support low interest rates. The IEA expects renewables to provide 80% of the growth in global electricity demand through 2030.
Possible Impacts: Renewable Energy
10.14.2020
Electric vehicle firms partner to ramp up charging station access, reliability
Utility Dive
Electric vehicle charging management company EV Connect announced a Partner Program to expand access to EV charging stations and improve their maintenance, naming BTCPower, EVBox, and EVoCharge as the initial program partners. The partnership will provide manufacturers with insight into charging stations’ performance, meaning maintenance can be managed more quickly and proactively.
Possible Impacts: Electric Vehicles
10.14.2020
In a high-renewables world, pumped hydro storage could be ‘the heavy artillery’
Utility Dive
Pumped storage hydropower accounted for around 95% of commercial energy storage capacity in the U.S. as of 2018. Despite the difficulties in finding suitable locations for pumped hydro plants, there is renewed interest in the technology driven by increasing demands for energy storage solutions. New technologies are emerging that may help eliminate many of the geographic restrictions the come with traditional pumped storage, but finance and market challenges remain.
Possible Impacts: Renewable Energy
10.14.2020
CEOs Increasingly See Sustainability as Path to Profitability
[article paywall] Wall Street Journal
CEOs increasingly are embracing the idea that a company's environmental, social and governance practices will play a role in its future success. A quarter of CEOs now strongly agree that investing in climate-change initiatives could lead to significant new product and service opportunities for their businesses, up from 13% in 2010, according to a 2020 survey of more than 1,500 global CEOs by PricewaterhouseCoopers.
Possible Impacts: Building Trends
10.14.2020
Dodge Momentum Index Increases in September
Dodge Data & Analytics
The Dodge Momentum Index rose 3.7% in September to 130.8 from the revised August reading of 126.2. The Momentum Index, issued by Dodge Data & Analytics, is a monthly measure of the first (or initial) report for nonresidential building projects in planning, which have been shown to lead construction spending for nonresidential buildings by a full year. The commercial component rose 3.9% while the institutional component moved 3.2% higher.
Possible Impacts: [general] Construction
10.12.2020
College Presidents Respond to COVID-19 Fall Survey
American Council of Education
Thirty-eight percent of college presidents surveyed by the American Council of Education said that their institutions may initiate employee layoffs in the next 12 months, and they anticipate these actions affecting 10 percent of their total workforce. More than half of the 295 presidents surveyed reported enrollment decreases this fall compared to last fall, and the same percentage said their institution is conducting classes predominantly online. The most pressing concerns reported by the college presidents surveyed are the mental health of students, followed by long-term financial viability of their institutions, mental health of faculty and staff, and spring enrollment numbers.
Possible Impacts: Education
10.12.2020
Workforce Sentiment Survey
CBRE
CBRE surveyed over 10,000 office workers from around the world about their employee experience while working remotely during the COVID-19 pandemic and their desires for the future. These insights provide a gauge of workforce expectations as real estate executives create strategies to redefine the work experience.
Possible Impacts: Real Estate
10.12.2020
Crane Counts in North American Cities Drop for First Time Since 2017
Construction Dive
For the first time since July 2017, the number of cranes in North American cities has decreased, according to Rider Levett Bucknall’s biannual count. Of the 14 measured cities, only Phoenix, Seattle, Toronto and Washington, D.C. saw an increase in the number of cranes. Five cities – Chicago, Denver, Las Vegas, New York, and San Francisco – experienced what RLB called a “significant decrease.”
Possible Impacts: [general] Construction
10.12.2020
FMI Third Quarter 2020 Engineering and Construction Outlook
FMI
The continued economic disruptions of COVID-19, market volatility, and mounting uncertainty surrounding the upcoming 2020 presidential election are key factors in FMI’s Third Quarter 2020 North American Engineering and Construction Outlook.
Possible Impacts: [general] Construction
10.12.2020
Hospital COVID-19 recovery stalled in August
Healthcare Dive
U.S. hospital finances suffered a setback in August as recovery from the onset of COVID-19 stalled, according to a monthly flash report released by healthcare management consulting firm Kaufman Hall. August operating margins were down 12% month over month and 18% year over year when funds from the CARES Act were excluded. With that money accounted for, the numbers were down 28% and 3%, respectively.
Possible Impacts: Healthcare
08.06.2020
Government funds, expense cuts behind for-profit hospitals’ Q2 profit growth
[article paywall] Modern Healthcare
All four of the country's largest investor-owned hospital chains increased their year-over-year net income during the second quarter of 2020, Modern Healthcare reports. The higher profits were due to federal stimulus grants, aggressive cost cuts, and patient volumes that were better than projected.
Possible Impacts: Healthcare
07.30.2020
College Towns Thirsty for Students to Return
[article paywall] The Chronicle of Higher Education
Students are getting set to decend on college towns by the thousands over the next month. While many are apprehensive about the spread of coronavirus among students, town-gowns across the U.S. — who rely heavily on the spending habits of undergraduates — are eager for students to return. This article from The Chronicle of Higher Education puts a spotlight on Iowa State University in Ames, IA; where some 31,000 students and researchers will return to campus next month.
Possible Impacts: Education
07.30.2020
Survey: COVID-19 will disrupt construction for at least another year
Construction Dive
A survey from Construction Dive finds their readers have become increasingly concerned that the U.S. will be dealing with the effects of the coronavirus outbreak for a more prolonged period that many anticipated. 75% of the survey respondents expect the impacts of COVID-19 to last another year or more.
Possible Impacts: [general] Construction
07.30.2020
The COVID-19 Crisis is Transforming Hotel Design, Construction
Construction Dive
Citing a recent whitepaper published by architecture firm Leo A Daly, Construction Dive reports that hotel owners and developers will put a greater emphasis on health-related features such as high-performance ventilation systems, indoor/outdoor architecture and antimicrobial finishes. This trend will impact the design of future hotel projects, but it will also create a rush of retrofit projects in the near-term.
Possible Impacts: Hospitality
07.30.2020
Construction Starts Show Additional Gains in June
Dodge Data & Analytics
Total construction starts increased 6% in June to a seasonally adjusted annual rate of $641.4 billion. This marks the second consecutive monthly gain in construction starts following the COVID-19 induced declines in March and April. Nonresidential building starts gained 6% and starts in the nonbuilding sector moved 27% higher. Residential starts, by contrast, fell 6% during the month. Year-to-date, construction starts were 14% lower than in the same period in 2019.
Possible Impacts: [general] Construction
07.28.2020
2020 Mid-Year Renewable Energy Industry Outlook
Deloitte
The outlook for the renewable energy sector is changing rapidly in the midst of the COVID-19 pandemic, and the latter half of 2020 could be crucial for the short-term renewable energy pipeline. Despite significant headwinds, Deloitte’s 2020 long-term outlook for the renewable energy industry remains positive and outlines three key trends they are watching: market transformation, grid resiliency, and innovation and collaboration.
Possible Impacts: Renewable Energy
07.28.2020
Vertical Farms Fill a Tall Order
[article paywall] Wall Street Journal
The coronavirus pandemic has sparked new demand for indoor vertical farms – multistory buildings in which crops are grown in water or in misted air instead of soil. This new approach to agriculture allows food to be grown closer to population centers, helping to overcome supply chain disruptions and distribution challenges. With office vacancies on the rise, many believe these indoor farms can occupy abandoned or underused office space.
Possible Impacts: Real Estate, Food & Beverage
07.28.2020
ABI Index June 2020: Business Conditions at Architecture Firms Begin to Stabilize
The American Institute of Architects
Business conditions at architecture firms continued to stabilize in June, following peak declines in April, according to the American Institute of Architects Architectural Billings Index (ABI). While the ABI score of 40.0 for the month means that the majority of architecture firms still saw their billings decline from May to June, the pace of that decline slowed significantly.
Possible Impacts: [general] Construction
07.28.2020
Biotech Properties Draw Billions of Dollars as Other Real Estate Languishes
[article paywall] Wall Street Journal
Landlords leasing to biotech, pharmaceutical and other life-sciences businesses are seeing strong demand from companies working to find a cure for COVID-19. While work-from-home policies are crimping demand for office space, lab work cannot be easily replicated remotely, and life-sciences tenants are leasing space. Governments, venture capitalists, and other private sources have invested billions of dollars into the sector.
Possible Impacts: Biotech
07.28.2020
With Play on Pause, Sports Teams Forge Ahead with Real Estate Projects
[article paywall] Wall Street Journal
Despite the coronavirus pandemic that has shuttered live entertainment in the U.S., professional sports teams are doubling down on ambitious projects that turn their real estate assets into alternative revenue streams by adding bars, hotels, and auxiliary entertainment. Amid lack of ticket sales, these revenue streams could become increasingly important for teams and help reduce their need for public subsidies.
Possible Impacts: Sports & Entertainment
07.28.2020
Dodge Momentum Index Loses Ground in June
Dodge Data & Analytics
The Dodge Momentum Index dropped 6.6% in June to 121.5 from the revised May reading of 130.1. The Momentum Index, issued by Dodge Data & Analytics, is a monthly measure of the first (or initial) report for nonresidential building projects in planning, which have been shown to lead construction spending for nonresidential buildings by a full year. The institutional component of the index fell 11.7% while the commercial component dropped 3.5%.
Possible Impacts: [general] Construction
07.28.2020
The Future of Data Centers in a Post Covid-19 World
Data Center Dynamics
The demand for web-enabled services has risen dramatically in this Covid-19 era as the demand for digital services such as Netflix, Zoom, and Microsoft Teams has increased. This article from Data Center Dynamics predicts the demand for data center capacity will continue its exponential growth trajectory and discusses some of the challenges this demand places on the industry.
Possible Impacts: Data Centers
07.15.2020
Deloitte Mid-year 2020 Engineering & Construction Industry Outlook
Deloitte
Given the disruption and impact caused by COVID-19, Deloitte evaluates the key trends, challenges, and opportunities affecting business and influencing strategy for the engineering & construction industry for the remainder of 2020. The path forward includes a focus on certain end markets, prefabrication and modularization approaches, adopting digital technologies, and building resilience through ecosystem partnerships.
Possible Impacts: [general] Construction
07.15.2020
AEC Proposal Activity at Lowest Level in a Decade
Construction Dive
A study from AEC advisory services firm PSMJ found that proposal activity for architecture, engineering and construction firms is at its lowest level in over a decade, sinking to -22% for proposal activity in the latest quarter.
Possible Impacts: [general] Construction
07.01.2020
The Future of Global Office Demand
JLL
The COVID-19 pandemic has pushed us into a global recession that will directly impact office demand. This report from JLL examines how office space will evolve as a result of this crisis, particularly focusing on remote work flexibility, office space design, technology, and commuting patterns.
Possible Impacts: Office
07.01.2020
2nd Quarter 2020 U.S. Engineering and Construction Outlook
FMI
The Second Quarter 2020 FMI U.S. Engineering and Construction Outlook reports that total engineering and construction spending is forecast to end down 9 percent in 2020, compared to 0 percent growth in 2019. FMI forecasts spending declines for all sectors and segments in 2020, and they anticipate the current recession will continue through the remainder of 2020 and possibly into 2021.
Possible Impacts: [general] Construction
07.01.2020
How E-Commerce During COVID-19 is Changing Industrial Real Estate
JLL
U.S. industrial leasing during the first quarter of 2020 was recorded at a three-year-high, according to JLL. The increase is industrial real estate demand is attributed to the exponential growth of e-commerce over the past decade, and the sudden spike in online activity due to the coronavirus pandemic has accelerated that demand.
Possible Impacts: Industrial, Warehouse
07.01.2020
Hospitals Predict Additional $120B in Losses in 2020
Healthcare Dive
A June survey from the American Hospital Association reveals that 67% of respondents do not expect to achieve baseline volumes by the end of the year, while 30% reported the timeframe was "unknown" or that they "never" expected to return to baseline volumes. The hospital lobby estimates an additional $120.5 billion in total financial losses from June 2020 through December 2020.
Possible Impacts: Healthcare
07.01.2020
USG + U.S. Chamber of Commerce Commercial Construction Index
USG + U.S. Chamber of Commerce
Each quarter, USG Corporation and the U.S. Chamber of Commerce survey contractors from across the country to glean insights from the trends they believe are shaping the future of commercial construction. The Q2 Commercial Construction Index (CCI) reports that the impact of COVID-19 has caused the first major drop in the index since its launch in 2017, lowering 18 points to 56. This is the largest quarterly decline in index history.
Possible Impacts: [general] Construction
06.18.2020
Medical Groups, Health Systems Expect COVID-19 Pinch to Last Into Next Year
Healthcare Dive
Citing a survey from the American Medical Group Association, Healthcare Dive reports that more than 90% of medical groups and integrated healthcare systems say the pandemic cut revenues by at least 25% and a large percentage of the respondents say it will be at least a year before revenues return to pre-pandemic levels. Expenses for PPE and telehealth services are expected to rise.
Possible Impacts: Healthcare
06.18.2020
Senators Back Sustaining Telehealth Momentum Post Pandemic
Healthcare Dive
The Trump administration loosened restriction to telehealth use amid the pandemic, but the majority of the changes will end abruptly when the national public health emergency ends. Telehealth use increased sharply during the pandemic, and Washington continues to debate which, if any, restrictions to virtual care should be permanently relaxed after the pandemic is over.
Possible Impacts: Healthcare
06.17.2020
Senior Fall Decision – The COVID Study
Carnegie Dartlett
Carnegie Dartlett’s research finds students are determined to go back to school this fall. Only 2% of students surveyed said they have plans to delay, and 42% said they will not delay under any circumstances. A campus that physically opens with social distancing measures is likely to retain 95% of their committed students. However, the later an institution waits to make their fall decision, the more concerned students become.
Possible Impacts: Education
06.17.2020
ABC Confidence Index Continues to Rebound
Associated Builders and Contractors
Confidence among U.S. construction industry leaders increased in May, although sales and profit margin expectations remain below the threshold of 50, indicating ongoing expectations of contraction. The staffing level index remained above that threshold, with more than 38% of contractors expecting to expand their staff during the next six months.
Possible Impacts: [general] Construction
06.17.2020
Student Voices – The Path to Fall 2020
Niche
Niche’s research finds students want normality and are averse to fully remote learning. The most appealing scenarios for fall 2020 are in-person classes, a hybrid of in-person and online, and 3-4 week block schedules.
Possible Impacts: Education
06.17.2020
How is the Pandemic Impacting College Endowments?
Education Dive
Citing research from the National Association of College and University Business Officers (NACUBO) EducationDive reports that returns from college endowments were down 13.4% on average in the first quarter of the 2020 calendar year. Smaller endowments took a bigger hit than larger ones. While spending from endowments has gained attention in recent months as a way to weather a financial crisis, only 8 percent of the institutions surveyed plan to increase endowment spending during the 2021 fiscal year.
Possible Impacts: Education
06.16.2020
Construction Starts Post Small Gain in May
Dodge Data & Analytics
Total construction starts rose 3% from April to May to a seasonally adjusted rate of $595.1 billion, following a 25% decline the previous month. Nonresidential building starts increased 8%, while residential building starts rose 4%. Nonbuilding starts, however, declined 4% during the month. Year-to-date, construction starts were 12% lower than in the same period in 2019.
Possible Impacts: [general] Construction
06.15.2020
Deloitte U.S. Economic Forecast – 2nd Quarter 2020
Deloitte
Deloitte’s 2nd Quarter 2020 U.S. Economic Forecast shares their projections for the recovery based on three scenarios. Their baseline forecast projects GDP to fall 17% in the first two quarters of 2020 with declines in investment spending, slowing residential construction, and a drop in exports.
Possible Impacts: [general] Economy
06.15.2020
Surgeons, Device Makers Grow More Confident in Elective Care Comeback
Healthcare Dive
A recent survey led by Bain & Company's healthcare team found that surgeons and medtech firms are optimistic about a swift return for elective procedures. Surgeons foresee three out of every four elective procedures returning by September, and device and diagnostic companies have indicated a recovery that outpaces what they had expected.
Possible Impacts: Healthcare
06.15.2020
As COVID-19 Closes Stadiums, Municipalities Struggle With Billions in Debt
[article paywall] The Wall Street Journal
Coronavirus lockdowns have halted sports and entertainment events indefinitely, slashing the amount of tourism taxes collected by municipalities who rely on hotel or rental car taxes to cover payments on tax-exempt municipal bonds. The shortfall is raising questions about decisions to allocate public money to sports franchises.
Possible Impacts: Sports & Entertainment
06.11.2020
Dodge Momentum Index Flat in May
Dodge Data & Analytics
The Dodge Momentum Index moved a scant 0.1% lower in May to 129.2 from the revised April reading of 129.4. The Momentum Index, issued by Dodge Data & Analytics, is a monthly measure of the first (or initial) report for nonresidential building projects in planning, which have been shown to lead construction spending for nonresidential buildings by a full year. The commercial component of the index rose 1.0% in May, while the institutional component dropped 1.9%.
Possible Impacts: [general] Construction
06.09.2020
Coronavirus Downdraft Has Airports Scaling Back Renovation Plans
[article paywall] The Wall Street Journal
The coronavirus pandemic has stifled air travel, and airports are reconsidering plans to invest in new terminals, runways, and hotels that may not be needed if demand doesn't return. Passenger traffic this year is forecast to be 50% lower than was expected before the pandemic, and airport revenue 56% lower. Analysts don't see air travel demand reaching pre-coronavirus levels until 2023.
Possible Impacts: Airports
05.18.2020
Energy Storage Poised to Tackle Grid Challenges from Rising EVs
Utility Dive
The impacts of COVID-19 will likely lead to flat electric vehicle (EV) sales this year, but recent reports say the long-term outlook for growth is strong, which means the electric grid will need to respond. EVs will put greater stress on the electric grid due to their larger batteries and capacity for faster charging.
Possible Impacts: Energy Storage, Electric Vehicles
05.15.2020
Video: Why the Health Care Sector May Not Rebound to Its Former Size
The Wall Street Journal
Health care has taken a big hit from the coronavirus pandemic, losing more than 1.4 million jobs in April. Despite being resilient to prior recessions, experts say the sector will structurally change and we should not expect a robust recovery.
Possible Impacts: Healthcare
05.15.2020
Renewables Poised to Outstrip Coal Generation in 2020 as COVID-19 Accelerates Transition
Utility Dive
According to the latest short-term energy outlook from the U.S. Energy Information Administration (EIA), renewables generation is set to outpace coal generation in 2020 amid shrinking electricity demand caused by COVID-19 measures and low natural gas prices. Stay-at-home policies, social distancing orders, and factory closures put in place due to the pandemic have reduced electricity consumption, and coal is generally the first resource to feel the brunt of demand reductions.
Possible Impacts: Renewable Energy
05.15.2020
Pandemic Could Drive Data Center M&A, Reshaping Industry Landscape
Data Center Frontier
The COVID-19 pandemic is altering the demand for digital infrastructure and has accelerated activity to close deals and raise capital. This article from Data Center Frontier shares how merger activity in the data center sector could shape the industry landscape.
Possible Impacts: Data Centers
05.15.2020
Corporate America Isn’t Betting On a V-Shaped Recovery
[article paywall] The Wall Street Journal
While many investors have predicted a V-shaped economic recovery, corporate executives are less optimistic, indicating a slower rebound. Companies that face greater exposure to travel and require face-to-face interactions predict the slowest recovery, while segments like construction, business supplies, and data centers expect faster normalization.
Possible Impacts: [general] Economy
05.15.2020
Construction Starts Show Sharp Contraction in April
Dodge Data & Analytics, May 14, 2020
Total construction starts declined 25% from March to April to a seasonally adjusted rate of $572.2 billion. Nonresidential building starts fell 37% from March, which residential dropped 25%. Nonbuilding construction starts was less impacted, falling just 5% due to strong activity in streets and bridges. “Even though parts of the country are beginning to reopen, and some areas that had paused construction are now restarting, it will be a very long road back to normalcy for the construction industry,” stated Dodge Data & Analytics Chief Economist Richard Branch. The Dodge Index fell to 121 in April compared to the 161 posted in March. This is the lowest reading of the Dodge Index since May 2014.
Possible Impacts: [general] Construction
05.15.2020
Dodge Momentum Index Trips on COVID-19 in April
Dodge Data & Analytics
The Dodge Momentum Index moved 6.0% lower in April to 135.9 from the revised March reading of 144.5. The Momentum Index, issued by Dodge Data & Analytics, is a monthly measure of the first (or initial) report for nonresidential building projects in planning, which have been shown to lead construction spending for nonresidential buildings by a full year. Both components of the index pulled back during the month – the commercial component fell 7.6%, while the institutional component dropped 3.2%.
Possible Impacts: [general] Construction
05.15.2020
WSJ Survey: Coronavirus to Cause 17% Unemployment in June
[article paywall] The Wall Street Journal
Economists surveyed by The Wall Street Journal say the U.S. contraction caused by efforts to contain the coronavirus pandemic will be bigger than anticipated earlier, with most saying the economy is suffering a sharp drop that will be followed by a gradual recovery. They expect gross domestic product to shrink 6.6% this year and the unemployment rate to hit 17% in June. The majority of the economists surveyed expect the recovery will start in the second half of the year.
Possible Impacts: [general] Economy
05.12.2020
Healthcare Sector Lost 1.4M Jobs in April
Healthcare Dive
The healthcare sector shed more than 1.4 million jobs in April, representing about 7% of the nation’s total job losses last month, according to data from the U.S. Bureau of Labor Statistics. The bulk of the lost jobs are in ambulatory services, physician offices, and dental practices. Hospitals face financial struggles after canceling profitable elective procedures to save resources for COVID-19 patients and staff involved in those services, along with administrative employees, have been furloughed.
Possible Impacts: Healthcare
05.12.2020
Video: How Boeing and Airbus Plan to Survive as Coronavirus Reshapes Aviation
Wall Street Journal
As the coronavirus pandemic rocks the aviation industry, Boeing and Airbus are fighting to protect their legacies. This Wall Street Journal video explains the steps the two companies are taking to survive this crisis, and how it could reshape the future of aviation. Both companies will undoubtedly face spending cuts, staff reductions, and supply chain challenges, and analysts predict it will take several years for the aviation industry to fully rebound.
Possible Impacts: Manufacturing, Aviation
05.12.2020
Interest in eSports is Booming Amid COVID-19
Building Design + Construction
Citing research from GlobalData, Building Design + Construction reports that the quickly growing eSports sector has been largely immune to the COVID-19 pandemic. eSports has grabbed attention from a wider audience during the pandemic as it has transitioned to online formats, and brands are investing in eSports to reach a young demographic that is typically resistant to traditional advertising.
Possible Impacts: Sports & Entertainment
05.12.2020
Higher Ed Space Considerations Before, During, and After COVID-19
APPA – Leadership in Educational Facilities
APPA conducted a study to understand how space considerations at higher education institutions have been impacted by the COVID-19 pandemic. Respondents see a future with less density in classrooms, reduced occupancies in residence halls, and more staff working remotely. Some respondents do not see any decrease in the footprint of space they will utilize, while others talked about consolidating and decommissioning buildings. While uncertainty remains, some institutions are considering changes to space allocation and rethinking design standards to accommodate social distancing.
Possible Impacts: Education
04.30.2020
The New Normal: 8 ways the coronavirus is changing construction
Construction Dive
The coronavirus has demanded sweeping changes from the U.S. construction industry, and as Construction Dive reports, experts say many of them will remain in place after the outbreak recedes. This article shares predictions for how cleaner jobsites, longer project schedules, a shift in project types, and more are creating a new normal for the construction industry.
Possible Impacts: Construction
04.30.2020
Resources for Getting Back to Work
Deloitte, Cushman & Wakefield, HGA, Buro Happpold
As the country begins to stabilize from the coronavirus pandemic, companies will begin to reopen their offices and bring workers back into the workspace. Several of our commercial real estate and design partners have published guidelines for reopening facilities that provide insights about how to create distancing plans, implement new cleaning protocols, modify air exchange systems, prepare the workforce, and more.
Possible Impacts: Commercial Real Estate, Office
- Workforce Strategies for Post-COVID Recovery (Deloitte)
- Increasing Organizational Resilience in the Face of COVID-19 (Deloitte)
- Recovery Readiness: A How-to-Guide for Reopening Your Workplace (Cushman & Wakefield)
- Back to Work: What Facilities Staff Can Do Right Now (HGA)
- Social distancing in the workplace: the new norm (Buro Happold)
04.30.2020
Coronavirus Pushes Colleges to the Breaking Point, Forcing ‘Hard Choices’ about Education
[article paywall] The Wall Street Journal [paywall]
The coronavirus has shaken higher education in the United States from every angle. Funding sources are in doubt, plans to return to campus in the fall are up in the air, revenue-driving sports seasons are at risk, and enrollment levels are in question. To brace for the pain, colleges and universities are cutting spending, freezing salaries, and halting plans for campus building.
Possible Impacts: Education
04.29.2020
Hospitals adapt real estate to fit new normal after COVID-19
[article paywall] Modern Healthcare
As the pandemic reshapes care delivery, health systems will likely reconfigure and pare down their brick-and-mortar space, Modern Healthcare reports. With more healthcare employees expected to permanently work from home and virtual services on the rise, many health systems are considering options to divest, consolidate, or repurpose space, and more systems may opt to lease rather than own real estate.
Possible Impacts: Healthcare
04.29.2020
Impact of COVID-19 on Capital Projects, Construction Programs
Deloitte
In the face of COVID-19's impact on capital project and construction programs, Deloitte recommends actions that owners, contractors, subcontractors, and suppliers can take to improve control of their construction programs and be better positioned when the pandemic subsides.
Possible Impacts: Construction
04.29.2020
United States Office Outlook – Q1 2020
JLL
After an unprecedented decade-long expansion, the office market is clouded in uncertainty as the COVID-19 outbreak unfolds. This research report from JLL finds that the pandemic is halting market activity with little certainty to its extent or time to recovery. Key office metrics stalled in Q1, and stay-at-home orders are delaying permitting and certification, which will lead to longer timelines for relocating tenants.
Possible Impacts: Commercial Real Estate, Office
04.27.2020
Sports Arenas Could Require Necessary Renovations for Social Distancing
CNBC
Architect and engineering firm DLR Group says teams may need to make "required and necessary renovations" to sports stadiums to honor social distancing guidelines, at least in the short-term. DLR created renderings and found that adjustments to seating arrangements would bring venues into compliance. Arena staff would also need to manage access points differently and invest in contact-less options for concessions. Changes to seating arrangements would significantly reduce the seating capacity of what stadiums are built to hold, resulting in revenue losses for teams.
Possible Impacts: Sports & Entertainment
04.24.2020
Contractor Confidence Plummets to Record Low Amid Crisis
Construction Dive
Confidence among U.S. construction industry leaders plunged in response to the economic fallout associated with COVID-19, according to the latest Associated Builders and Contractors’ Construction confidence Index. Readings for sales, profit margin and staff level expectations fell below the threshold of 50 for the first time in the history of the series. All three CCI metrics were well above the 50-point median in January before the pandemic hit the U.S.
Possible Impacts: Construction
04.24.2020
Public Colleges Lose State Funding, Effective Immediately
[article paywall] The Wall Street Journal
Some public colleges and universities are beginning to see cuts to their state funding, taking effect immediately. The cuts will hit student programs, capital projects, and staff salaries. New Jersey, Nevada, and Missouri are some of the states that have already implemented cuts to public institutions..
Possible Impacts: Education
04.22.2020
Architecture Firm Billings See Historic Drop from February to March
The American Institute of Architects
Demand for design services from architecture firms recorded a record fall, according to the latest Architecture Billings Index released from The American Institute of Architects. The index, which is considered a leading indicator of future construction activity, fell by 20.1 points in March to a score of 33.3 for the month. (A score over 50 indicates increasing billings, a score below 50 indicates declining billings). Both new project inquiries and design contracts scores dropped dramatically, posting scores of 23.8 and 27.1 respectively.
Possible Impacts: Construction
04.22.2020
COVID-19 Sinks Hospital Operating Margins
[article paywall] Modern Healthcare
Citing a report from Kaufman Hall, Modern Healthcare reports that hospitals’ median operating margins fell 150% to negative 8% in March. The decline was due, in part, to lost revenue from postponed elective procedures. Margins were further reduced as organizations prepared staff, supplies, and capacity for a surge of coronavirus patients. The report finds that the impact will likely be most severe on resource-constrained smaller hospitals.
Possible Impacts: Healthcare
04.22.2020
A Cloudy Future: Data Center Demand and COVID-19
Data Center Frontier
In the wake of COVID-19, the data center industry must adjust to a new reality in which demand for cloud services will soar in some sectors yet decline in others. In this article, experts discuss the forecast for future data center demand and how the pandemic could drive IT investments in government, education, and healthcare.
Possible Impacts: Data Centers
04.22.2020
The Big Question for Colleges: Will There Be a Fall Semester on Campus?
[article paywall] The Wall Street Journal
As the path of the coronavirus continues to play out, colleges across the country are weighing different scenarios for the fall semester, including online instruction and modified schedules. Whatever colleges decide will have significant financial impacts, and their final decisions depend entirely on the course of the pandemic.
Possible Impacts: Education
04.21.2020
Redesigning Mixed-Use Environments for a Post-Pandemic World
Gensler Research & Insights
As we begin transitioning to a post-pandemic “new normal,” the spaces where we live, work, and gather may change. Design and architecture firm Gensler shares their outlook on the trends we may see for mixed-use environments and public spaces, including broader adoption of modular building systems, a renewed focus on making spaces healthier, and a resurgence of connected communities.
Possible Impacts: Mixed-Use, Commercial Real Estate
04.21.2020
How College Leaders Are Planning for the Fall
[article paywall] The Chronicle of Higher Education
When the coronavirus pandemic hit the U.S., colleges swiftly transitioned to online instruction to salvage the spring semester. Institutions are now in the midst of planning for an eventual return to campus while facing unknowns about how the virus will progress, revenue losses from declining enrollments, and cuts in state funding. As administrators ponder their options for fall, they also are considering the ways their institutions may permanently adapt.
Possible Impacts: Education
04.21.2020
A closer look at the economics of sports in a post-pandemic world
The Boston Globe
Sports at every level have been canceled or postponed since mid-March due to the spread of coronavirus, and as reported by The Boston Globe, professional sports leagues in the United States face a stormy financial future. Sports seasons for 2020 are in question, and even when attendance restrictions are eventually lifted, the industry may need to alter its business model and explore ways to provide an experience to fans who are not in a stadium, arena, or ballpark.
Possible Impacts: Sports & Entertainment
04.21.2020
Coronavirus: How should US higher education plan for an uncertain future?
McKinsey & Company
With U.S. campuses largely empty of students, higher-education leaders must shift their thinking to what happens next. McKinsey & Company examines the economic disruption of three broad epidemiological and public-health scenarios and their implications for teaching and learning, enrollments, faculty and staff, and finances.
Possible Impacts: Education
04.20.2020
Office Workers Will Return With Radically Different Expectations and Worries
Bisnow
After an extended period of working from home, employees will return to their offices with different expectations and worries than they had before the crisis. As Bisnow reports, office space may need to be reconfigured, working arrangements may need to be more flexible, and employees may demand to know more about cleaning procedures.
Possible Impacts: Commercial Real Estate, Office
04.20.2020
Sending Hospitals Into Bankruptcy
[article paywall] The Wall Street Journal
Revenue streams from elective procedures have dried up for doctors and hospitals and “non-essential” healthcare workers are losing their jobs. As reported in this opinion piece from The Wall Street Journal, some hospitals are filing for bankruptcy due to miserly Medicaid and Medicare reimbursements that don’t replace lost revenue.
Possible Impacts: Healthcare
04.20.2020
COVID-19: Will social distancing be the new normal?
The Mayo Clinic
As some states begin relaxing restrictions and social distances measures, new projections suggest social distancing may need to continue through 2022. A Mayo Clinic expert explains why social distancing may be necessary long-term and discusses how the pandemic is changing the future of healthcare delivery.
Possible Impacts: Healthcare
04.16.2020
AIA Launches Tool to Help in the Search for COVID-19 Alternative Care Sites
Architect
As communities across the country race to expand available hospital bed space in response to COVID-19, an American Institute of Architects (AIA) task force is providing a new tool for public officials to quickly identify buildings suitable to be adapted for patient care. The COVID-19 Alternative Care Sites Assessment Tool provides a checklist highlighting important areas to consider when evaluating buildings to be used for temporary healthcare operations during a pandemic.
Possible Impacts: Healthcare
04.16.2020
Healthcare Webinar: Federal Government Stimulus Package & Appropriations
IDN Summit
The U.S. government’s response to the coronavirus pandemic has expanded rapidly, but what does recent legislation and aid packages specifically mean for Integrated Delivery Networks (IDNs)? Moderated by Intermountain Healthcare’s former Vice President of Supply Chain, Brent Johnson, experts from Cornerstone Government Affairs share details on the U.S. government’s response to COVID-19 as well as the Department of Health and Human Services (HHS) targeted distribution of funds.
Possible Impacts: Healthcare
04.16.2020
Google Will ‘Recalibrate’ Spending on Data Centers, Citing COVID-19
Data Center Frontier
Google announced it will review its spending on data center infrastructure as part of a broader cost management initiative related to the COVID-19 pandemic. Chief Executive Officer Sundar Pichai said in an email to staff that Google would be slowing the pace of hiring and "recalibrating the focus and pace of our investments in areas like data centers and machines." Google spent $13 billion on digital infrastructure in 2019, the article reports.
Possible Impacts: Data Centers
04.14.2020
Higher ed’s COVID-19 recovery depends on government response
Education Dive
State and federal government response to the coronavirus pandemic will impact how U.S. universities will be able to recover from the economic fallout of the crisis. The virus is impairing institutions’ ability to conduct tours to recruit high school students, attract international students, and raise funds through endowments. Analysts say larger colleges with ample resources should be able to cover budget gaps through the end of the 2020 fiscal year, but smaller institutions will likely suffer more.
Possible Impacts: Education
04.14.2020
The coronavirus economic reopening will be fragile, partial, and slow
[article paywall] The Wall Street Journal
Executives around the world who rapidly overhauled operations when the coronavirus struck, and the politicians who made them do it, are now focused on restarting the economy and their own businesses. That restart, according to interviews with leaders across a range of industries, suggest that back to normal will be anything but.
Possible Impacts: Economy
04.13.2020
How the pandemic is changing 2020 hotel forecasts
Hotel News Now
Hotel industry forecasters have drastically reduced their 2020 and 2021 projections, going from a mostly flat environment to a significant drop off in occupancy and revenue. A revised forecast issued by STR/Tourism Economics represents the steepest RevPAR decline the firm has ever forecasted. However, both room demand and RevPAR are projected to see a rapid recovery in 2021.
Possible Impacts: Hospitality
04.13.2020
What U.S. hotel recovery could look like after COVID-19
Hotel News Now
Jan Freitag, SVP of lodging insights at STR, provides a how the post-COVID-19 recovery could play out in the U.S. based on past recessions. Freitag anticipates leisure travel will be the first to rebound, while corporate travel and group events will see a slower recovery. While the hotel industry will see declines in the current year, STR is projecting a rebound in 2021 with prolonged, slowed growth.
Possible Impacts: Hospitality
04.13.2020
A quarter of rural hospitals are at risk of closing
[article paywall] Modern Healthcare
Citing research by Guidehouse (formerly Navigant), Modern Healthcare reports that a quarter of rural hospitals are at risk of closing as operating margins wane and the COVID-19 pandemic erodes finances. Many rural hospitals were already at risk before the pandemic due to declining admissions, changing payer mixes, and labor shortages. The pandemic will compound the challenges rural hospitals already face.
Possible Impacts: Healthcare
04.13.2020
College presidents anticipate cost cutting and layoffs
Education Dive
Almost three quarters of college and university presidents believe staff layoffs will be necessary, and more than half predict they will need to cut budgets across the board as a result of the coronavirus pandemic, according to a report from research firm ABC Insights. Institutions have been faced with returning some or all of room and board money to students after they asked students to vacate dormitories, and enrollment yields have been thrown into question. Seven in 10 presidents surveyed anticipate a revenue decrease of 10% or more in the coming fiscal year.
Possible Impacts: Education
04.10.2020
Webinar: The Potential Impact of Coronavirus on Construction Starts
Dodge Data & Analytics
The coronavirus is having a sudden and significant impact on the economy – moving from near potential growth in January and February to stall speed now. Dodge Data & Analytics Chief Economist Richard Branch shares his insights into the potential impact of coronavirus on construction starts.
Possible Impacts: Construction Industry
04.09.2020
COVID-19 Impact on the Food Industry & Implications for Industrial Real Estate
CBRE
COVID-19 has disrupted the food industry as U.S. consumers increasingly utilize grocery delivery and pick-up services, and analysts predict that many consumers will continue to purchase goods online after the pandemic subsides. This shift will heighten the demand for cold storage capacity and alter the way grocery stores and restaurants are configured to accommodate storage needs.
Possible Impacts: Distribution/Warehouse, Food & Beverage, Industrial
04.09.2020
COVID-19: Top 10 Questions and Answers
Moody’s Analytics
Chief Economist Mark Zandi from Moody’s Analytics answers ten vital questions about the economic damage inflicted by COVID-19 to explain some of the near- and longer-term implications of the virus.
Possible Impacts: Economy
04.08.2020
WSJ Survey: Coronavirus to Cause Deep U.S. Contraction, 13% Unemployment
[article paywall] The Wall Street Journal
Economists surveyed by The Wall Street Journal forecast a severe economic contraction with 14.4 million job losses and a spike in the unemployment rate this spring. They expect the unemployment rate to hit 13% in June and still be at 10% in December. Most of the economists polled expect the economic recovery will begin in the second half of the year, but they are split on whether the recovery will be U-shaped or V-shaped.
Possible Impacts: Economy
04.08.2020
Telecommuting will likely continue long after the pandemic
Brookings Institute
Due to the COVID-19 pandemic, it has been estimated that up to half of American workers are currently working from home – more than double the fraction who worked from home in 2017-18. Some experts speculate that the pandemic will dramatically accelerate the trend toward telecommuting, resulting in major implications for commercial real estate, transit, technology, and other industries. As outlined in this article from Brookings Institute, work-at-home arrangements can offer advantages for both employers and employees, but there are downsides as well.
Possible Impacts: Commercial Real Estate, Transportation
04.08.2020
Telehealth and Retail Clinic Use Increasing
Healthcare Dive
Citing a research study from FAIR Health, Healthcare Dive reports findings that consumers are increasingly looking to telehealth and retail clinic use to save costs for non-urgent healthcare needs. The coronavirus outbreak has compounded the need for cheaper and more accessible care, particularly with virtual care as an option to alleviate stress on doctor’s offices. The Trump administration has scaled back regulation on telehealth use, and telemedicine vendors have seen utilization of their platforms skyrocket over the past few weeks.
Possible Impacts: Healthcare
04.08.2020
COVID-19 collides with the U.S. economy
JLL
Record-high unemployment claims and skyrocketing job losses are taking a toll on the U.S. economy amidst the COVID-19 pandemic. Motor vehicle sales hit the lowest level since June 2011, boding ill for broader retail sales, particularly in categories not available via ecommerce.
Possible Impacts: Economy
04.07.2020
Global storage deployments could see hit in 2020, but fundamental drivers still remain
Utility Dive
The COVID-19 pandemic could reduce previous forecasts for global storage deployments, but analysts say the fundamental drivers of the market have not changed and they predict the sector will grow 13-fold by 2025. The market will slow in the near-term, but decreasing battery prices, storage-related mandates, and the emergence of more use cases for solar-plus-storage systems are providing good tailwinds for the energy storage sector.
Possible Impacts: Renewable Energy, Energy Storage
04.07.2020
Medical Technology Stocks Face a Coronavirus Swoon
[article paywall] Wall Street Journal
Hospitals that make much of their money from elective surgeries are deferring purchases of equipment, leading to losses for medical technology companies.
Possible Impacts: Healthcare, Manufacturing
04.07.2020
The COVID-19 Pandemic and the Future of Multifamily
Moody’s Analytics
This video from Moody’s Analytics looks back at market responses for past catastrophic events (including earthquakes, hurricanes, and terrorist attacks) to derive insight on the future of multifamily supply and demand, given the coronavirus pandemic.
Possible Impacts: Multifamily Housing
04.06.2020
Analysts predict a temporary coronavirus-related halt to commercial lending
Construction Dive
Citing analysis from RCLCO Real Estate Advisors, Construction Dive reports that there has been increased scrutiny for commercial lending due to concern about the near-term impact of the coronavirus crisis. Hospitality, retail and entertainment are most at risk in this lending environment, while healthcare construction and healthcare-related manufacturing projects could see more activity. Analysts also see an increased demand for distribution and warehouse space as U.S. companies favor higher inventory levels, as well as more manufacturing facilities to locate inn North America to ensure access to supplies.
Possible Impacts: Commercial Real Estate
04.06.2020
CBRE Flash Call: COVID-19 Impact on Multifamily Real Estate
CBRE
CBRE experts and representatives from Citi, Fannie Mae and Freddie Mac examined current conditions in the capital markets, multifamily sector, public equity and debt markets on a March 24 flash call with their clients. The panelists shared while multifamily values are stressed, the market continues to function at a reduced level. CBRE is optimistic for a quick rebound and views student housing and senior housing as being most at risk.
Possible Impacts: Multifamily Housing
04.06.2020
Infrastructure funding unlikely in fourth stimulus package
Utility Dive
Legislation brought forth by House Speaker Nancy Pelosi and other Democrats proposed a sweeping grid modernization plan and a focus on job creation. But as reported by Utility Dive, Pelosi later shifted her tone, saying the package should focus again on relief similar to the CARES Act already signed into law. Clean energy leaders say Pelosi’s move is justified, although the industry continues to push for extensions of the deadlines for the production tax credit or investment tax credit.
Possible Impacts: Renewable Energy
04.06.2020
Higher Ed: The Hard Choices Presidents Will Have to Make
[article paywall] The Chronicle of Higher Education
Citing a survey administered by the Association of American Colleges & Universities and ABC Insights, The Chronicle of Higher Education reports that 70 percent of college and university presidents expect revenue decreases of 10 percent or more due to the impact of the coronavirus. The presidents who weighed in said they will need to cut expenses through hiring freezes and layoffs. Nearly all of the presidents surveyed said they plan to re-engineer processes, which likely includes expanding virtual education.
Possible Impacts: Higher Education
04.03.2020
Survey of Collegiate Athletic Directors - Academic Progress, Financial Uncertainty Among Top Concerns Stemming from Coronavirus
LEAD1 Association and Teamworks
The LEAD1 Association and Teamworks polled more than 100 Football Bowl Subdivision athletics directors on their concerns, plans and goals in light of the COVID-19 pandemic. The survey finds that the majority of the athletics directors who responded are concerned about the strain on their student-athletes, and finances are also top of mind for every department.
Possible Impacts: Sports & Entertainment, Higher Education
04.03.2020
Data Centers – Understanding the impact of COVID-19
Data Center Dynamics
The COVID-19 pandemic is delaying construction projects and hampering supply chains, but the long-term impact to the data center industry could be one of growth. Marlana Bosley, data center market intelligence lead from Corning shared her outlook with attendees of Data Center Dynamic's virtual New York conference. While the pandemic has created challenges with staff and construction, Corning is expecting a bounce back in Q3 and then a stronger Q4 to support a V-shaped recovery.
Possible Impacts: Data Centers
04.03.2020
CoreNet Survey: COVID-19 Drives Shifts in the Workplace
CoreNet Global
A survey conducted by CoreNet Global revealed that global corporate real estate professionals anticipate the expanded use of virtual meetings and remote work will continue beyond the current coronavirus crisis. Survey respondents also reported closures, reduced hours, and increased security measures at their facilities. About half of the respondents say their company’s real estate footprint will shrink as a result of increased remote work arrangements.
Possible Impacts: Real Estate
04.02.2020
Downright Dangerous Decisions: Developing Strategy Amid Uncertainty
FMI
FMI's economists share a range of possible outcomes of the coronavirus outbreak summarized in three scenarios. They also provide food for thought about how to logically develop strategies in these uncertain times.
Possible Impacts: Construction Industry, Economy
04.02.2020
What the CARES Act means for the health care industry
Health Care Advisory Board
The interactive article reviews implications the CARE Act will have for hospitals, physician practices, post-acute care providers, payers, pharma and device manufacturers, and health tech companies. The Act focuses primarily on helping the health care industry navigate the most immediate needs associated with the pandemic, but additional support may be needed to weather longer-term financial impacts of the virus. Provisions of the bill related to expanding telehealth services may be have the biggest impact on the industry.
Possible Impacts: Healthcare
04.02.2020
Consultant predicts a post-coronavirus ‘construction tsunami’
Construction Dive
Keith Prather, market intelligence expert for Olathe, Kansas-based business management consulting firm Pioneer IQ, presented an optimistic outlook for the coronavirus recovery, telling attendees of a Design-Build Institute of America webinar that the U.S. economy will return to normal sooner than later. Prather’s analysis looks at the suspected rate of fear among all parts of American society to get a reading on when things will rebound.
Possible Impacts: Construction Industry
04.01.2020
COVID-19 Forecast Update from Dodge Data & Analytics' Chief Economist
Dodge Data & Analytics
Dodge Data & Analytics released an updated macroeconomic forecast to reflect the impact of the COVID-19 crisis. Chief Economist Richard Branch estimates the economy will contract by 2.2% in 2020, but will then accelerate to 2.7% in 2021 and closer to 5% in 2022. New construction projects entering the earliest stages of planning appeared to be statistically normal for the three weeks ending March 29, but it is still very early in the crisis.
Possible Impacts: Construction Industry, Economy
04.01.2020
Trump Calls for New $2 Trillion Infrastructure Bill
[article paywall] The Wall Street Journal
Spurred by low interest rates, President Trump is pushing for a fourth congressional coronavirus relief package that would include a $2 trillion investment in infrastructure. Some lawmakers in both parties support future stimulus efforts to include infrastructure investments, but with members of both chambers working remotely in the coming weeks, it is unlikely a bill will be put together soon.
Possible Impacts: Construction Industry, Economy
04.01.2020
Sports Industry Reels From Coronavirus Fallout
[article paywall] The Wall Street Journal
The sports industry saw unlimited growth and unrestrained spending over the last decade, but coronavirus brought the business to an immediate standstill. This article discusses how leagues, franchise owners, and television executives are grappling with the immediate challenges they face, as well as how they may look to move forward.
Possible Impacts: Sports & Entertainment
04.01.2020
If the Coronavirus Collapses State Budgets, What Will Happen to Public Colleges?
[article paywall] The Chronicle of Higher Education
Skyrocketing unemployment claims lead to declines in tax revenue for states, many of which in the past responded to economic downturns by cutting funds for public colleges. Many state legislatures were still deciding their budgets for the next fiscal year when the new virus had just been identified in China. Experts say higher ed will very likely suffer cuts as states deal with higher public-health costs and lower tax revenues.
Possible Impacts: Education
03.31.2020
A snapshot of the nation’s ICU beds, by state and provider type
Modern Healthcare
A major concern about the impact of COVID-19 on providers is intensive-care unit capacity, which varies widely depending on location and the type of hospital. Here’s a look at ICU and specialty ICU beds overall by state and type.
Possible Impacts: Healthcare
03.31.2020
COVID-19 Impact: Sports and Entertainment
University of South Carolina
Two sport and entertainment management professors from the University of South Carolina College of Hospitality, Retail and Sport Management – associate professor Tom Regan and assistant professor Nick Watanabe – answer questions about COVID-19s economic impact on the sports and entertainment industries.
Possible Impacts: Sports & Entertainment
03.31.2020
State-by-State COVID-19 Projections
Institute for Health Metrics and Evaluation
This interactive model from IHME forecasts the projected hospital resource use and deaths by US state.
Possible Impacts: Healthcare
03.31.2020
Wind, Solar Farms Are Seen as Havens in Coronavirus Storm
The Wall Street Journal
Wind and solar farms are attracting interest from investors who are seeking low-risk, stable-yield opportunities at a time of market volatility. Wind and solar farms experienced a similar surge after the 2008 financial crisis.
Possible Impacts: Wind, Solar, Economy
03.29.2020
We Ain’t Seen Nothin’ Yet – Outlook for Oil/Gas/NGL Supply, Demand and Prices: Completely Blown Away
RBN Energy LLC
Recent analysis from RBN Energy LLC provides an outlook for hydrocarbon prices and infrastructure amid the COVID-19 outbreak and the OPEC-plus breakdown.
Possible Impacts: Power, Hydrocarbon
03.27.2020
Coronavirus Update: Industry Fast Facts
IBISWorld
IBISWorld presents a collection of fast facts that outline how the spread of COVID-19 is impacting industry sectors across the world.
Possible Impacts: Multiple Industries
03.27.2020
Trump Signs $2-Trillion Stimulus Bill for COVID-19 Emergency
Engineering News-Record
Engineering News-Record summarizes how the stimulus bill could impact construction. The bipartisan agreement provides billions of dollars that could go toward construction, including hospitals, airports and transit systems, but states and localities could opt to use the funds to offset operations expenses.
Possible Impacts: Construction Industry, Economy
03.26.2020
Survey Findings: Things are bad and getting worse
Solar Energy Industries Association (SEIA)
A survey of Solar Energy Industries Association (SEIA) member companies shows the industry could be at risk. Companies reported making workforce reduction plans and concerns about delays.
Possible Impacts: Solar
03.25.2020
Cloud Data Center Capex Forecasted for Higher Growth in 2020 Despite Market Challenges
Dell’Oro Group
A recent report from Dell’Oro Group expects a steep decline in enterprise IT spending due to supply and demand disruptions caused by COVID-19 and expects cloud service providers will have a need to expand their infrastructure at a measured pace.
Possible Impacts: Data Centers
03.24.2020
U.S. Hotel Viewpoint – An Updated 2020 Outlook
CBRE
CBRE has published an updated outlook for hotels as the lodging sector faces a contraction in overall economic activity and fallout from COVID-19 social distancing.
Possible Impacts: Hospitality
03.24.2020
Immediate Impacts of COVID-19 Construction Planning are Mixed
Dodge Data & Analytics
Dodge Data & Analytics Chief Economist Richard Branch reports that the U.S. economy is in recession amidst the coronavirus pandemic and will experience second quarter declines similar to the Great Recession.
Possible Impacts: Construction Industry, Economy
03.21.2020
Coronavirus-Triggered Downturn Could Cost Five Million U.S. Jobs
The Wall Street Journal
According to a WSJ survey of 34 economists, the COVID-19 economic downturn could rival – and possibly even surpass – the severity of the 2007-2009 recession. While the full extent of the coming downturn is unclear, the economists who were surveyed predict losses of up to five million jobs this year and a drop in economic output of as much as $1.5 trillion.
Possible Impacts: Economy
03.20.2020
Pandemics, Panic, and Prices: Coronavirus and the Commercial Real Estate Transaction Market
Moody’s Analytics
[VIDEO] Victor Calanog of Moody’s Analytics discusses the effect of extreme financial market volatility on the US multi-family and commercial real estate transaction markets, given the spread of COVID-19. With a recession looming, he looks closely at the 10-year treasury yield, focusing on high volatility periods, and discusses what that can mean for the market during this global pandemic.
Possible Impacts: Commercial Real Estate
03.20.2020
Unemployment poised to skyrocket, creating urgent need to spur renewables
Utility Dive
As the country faces what could be its fastest increase in unemployment in history, energy infrastructure – and construction jobs in general – could play an important role in getting people back to work during the recovery. However, short-term challenges must be addressed first.
Possible Impacts: Wind, Solar, Economy
03.19.2020
AWEA Releases COVID-19 Outlook
American Wind Energy Association (AWEA)
AWEA released its initial estimate for how the virus will affect the wind industry, noting the virus could put over 35,000 jobs at risk and jeopardize $43 billion in investments and payments to rural communities.
Possible Impacts: Wind
03.19.2020
If Coronavirus Patients Overwhelm Hospitals, These Colleges are Offering Their Dorms
The Chronicle of Higher Education
An uncontrolled spread of the new coronavirus could result in COVID-19 patients needing hospital care that would outstrip the number of available beds. Administrators at some campuses have offered dormitory to hospitals needing beds. Dormitories may not be suited for intensive care, but they could house asymptomatic individuals under quarantine or for healthcare workers who don’t want to expose family in their own homes.
Possible Impacts: Education, Healthcare
03.19.2020
Boeing Considers Dividend Cut, Layoffs Amid Cash Drain
The Wall Street Journal
Already suffering from the yearlong grounding of its 737 MAX, the COVID-19 crisis has erased nearly 70% of Boeing’s market value in 2020. Amid reductions in commercial flights and canceled orders, Boeing is considering layoffs and a halt to production. Boeing has requested $60 billion in aid for themselves and the broader aerospace supply chain.
Possible Impacts: Aerospace, Manufacturing
03.19.2020
Governors, senators urge Trump to help states expand hospitals for anticipated coronavirus patients
Construction Dive
New York Governor Andrew Cuomo and Massachusetts Senator Elizabeth Warren have urged President Trump for U.S. Army Corps of Engineers’ help to convert or construct temporary medical facilities for anticipated coronavirus patients.
Possible Impacts: Healthcare
03.19.2020
COVID-19 poses long-term impact to not-for-profit hospitals
Modern Healthcare
Not-for-profit health systems face both short- and long-term implications from the COVID-19 pandemic. Cancelations of profitable elective surgeries and higher costs for staffing and supplies will put tremendous pressure on cash-strapped hospitals. Moody’s Investors Service has adjusted their not-for-profit healthcare outlook from stable to negative.
Possible Impacts: Healthcare
03.18.2020
COVID-19 Impact on Commercial Real Estate
CBRE
A recent CBRE Flash Call on COVID-19 impacts to commercial real estate drew attendance from 15,000 of their clients and colleagues. CBRE expects a recession in the global economy with a sharp downturn in Q2 and the start of a bounce back in Q3. Lodging, student and senior housing have been hit the hardest.
Possible Impacts: Commercial Real Estate
03.18.2020
Moody’s lowers higher ed outlook to negative amid coronavirus crisis
Education Dive
Moody’s Investors Service downgraded its outlook for the higher education sector from stable to negative, as reported by Education Dive. As institutions shift to online instruction, they are promising partial refunds for room, board and other expenses – money they rely on heavily for revenue. A recession will also cause enrollments to decline, and economic volatility will threaten endowments.
Possible Impacts: Education
03.18.2020
Five ways coronavirus will affect the connectivity and tech industry in 2020
Business Insider
The telecommunications and consumer technology industries are feeling immediate-term disruptions caused by COVID-19, but opportunities to keep people safe and healthy could speed adoption of 5G technology, virtual reality, and smart city solutions.
Possible Impacts: Data Centers
03.17.2020
Which cities grew out of the last recession?
Brookings Institute
A recent study from Brookings Institute showed that very large metro areas – those with at least 1 million people – outpaced others on growth, prosperity, and inclusion between 2008 and 2019.
Possible Impacts: Economy
03.13.2020
Six ways the coronavirus outbreak will affect construction
Construction Dive
Experts predict COVID-19 will have long-term ramifications for many aspects of the U.S. construction industry, including employee health and safety, material delays, owner and lender anxiety, quarantines and travel bans, legal issues, and global uncertainty.