Everyone is on edge wondering where the coronavirus (COVID-19) is heading, especially those in the construction industry. U.S. builders rely on China for a number of imported goods and materials. It remains to be seen what impact the coronavirus will have on the construction industry, but there will almost certainly be an impact.
Below, a Miami contractor attorney discusses the effect the coronavirus is having on the industry and how contractors can best prepare themselves. For all your construction-related legal needs, the Miami contractor attorneys with Cotney Construction Law are standing by.
The Global Supply Chain
As if tariffs weren’t enough of a concern, construction companies must now contend with a growing outbreak. China has reported 72,436 infections. In response, the Chinese Government has instituted containment efforts and quarantines, which is resulting in a manufacturing slowdown. As reported by Construction Dive, we are already seeing an increase in price for copper, aluminum, and casework. Fortunately, steel fluctuations are expected to remain at a minimum.
Should Construction Companies Be Worried?
Construction companies shouldn’t be too concerned yet. Construction businesses are no strangers to manufacturing slowdowns and should already have a number of suppliers available to ensure that operations run smoothly, regardless of price fluctuations. However, this may not alleviate your worries regarding the dangers of the coronavirus.
Although the coronavirus is dangerous, the outbreak is mainly located in China. As of the time of this writing, the worldwide death toll for the coronavirus stands at 2,704. To put that into perspective, the Center for Disease Control and Prevention (CDC) estimates that, from October 1, 2019, through Feb. 15, 2020, as many as 41,000 deaths in the U.S. have been caused by influenza (flu).
While there is little you can do to influence the global supply chain, you can and should encourage your workers to wash their hands regularly and get the seasonal flu vaccine. The flu is simply more concerning at the moment. As for the coronavirus, you should do what you’re doing now by keeping up with the latest news. It remains to be seen if the situation changes, but for right now, you have little to worry about. For all your construction-related legal needs, turn to the team of professionals who are tapped into the industry. Turn to the Miami contractor attorneys from Cotney Construction Law.
Disclaimer: The information contained in this article is for general educational information only. This information does not constitute legal advice, is not intended to constitute legal advice, nor should it be relied upon as legal advice for your specific factual pattern or situation.