While construction continues as essential business in most states, Needham DBS has concerns that the construction services supply chain is being disrupted. As leading indicators to construction activity, the Architectural and Engineering services sector must keep the pipeline filled with new and active design to prevent downturns in the second and third quarter construction projects. There’s a tremendous amount of fear in the country and the next few weeks will only add to that anxiety as many of the hot spot areas around the country reach closer to their peak. Experts say that those areas may not start to see relief until the third week in April and much of the country may not be back to work until early June.
Needham DBS has been busy working through the backlog of projects that were lined up going into the COVID-19 pandemic. The approach is to work through that backlog as quickly as possible to free up opportunities that require “speed to market” resources, either services or materials. Architects and Engineers should be procuring new work to keep the pipeline primed but many new projects aren’t kicking off due to owner uncertainty or restrictions in commercial real estate lending.
Construction Dive consultant, Keith Prather, predicts a “construction tsunami” beginning in the third quarter. Needham DBS understands the need to be quick and nimble in a design-build environment. Needham DBS expects to see increased work in many critical market sectors such as supply chain logistics and warehousing, manufacturing and industrial facilities, medical facilities and pharmaceuticals. With heavy experience in these market sectors, our team is ready to meet the challenges ahead as we emerge from the pandemic and get the country back to work.