NDA survey shows demolition contractors experiencing work stoppages, economic impacts from COVID-19

NDA survey shows demolition contractors experiencing work stoppages, economic impacts from COVID-19

The results show an industry that has been affected by work stoppages, personnel challenges and budget reductions.

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April 17, 2020

The National Demolition Association (NDA) sent out a survey to its members to help ascertain the impact the COVID-19 crisis was having on demolition contractors throughout the U.S. The survey, which ran from April 6-10, was answered by more than 100 professionals.

The results show an industry that has been affected by work stoppages, personnel challenges and budget reductions.

Here are the highlights:

  • 29.06 percent of respondents have not experienced work stoppages because of COVID-19, 29.91 percent have had stoppages on one to three projects, 22.22 percent have had stoppages on four to six projects, 7.69 percent have had all projects suspended by the owner and/or general contractor, and 3.42 percent have made the operational decision to suspend projects. 7.69 percent answered “other.”
  • In terms of backlog, 29.06 percent say they have not been affected; 54.70 percent say they are one to three months on hold, suspended or cancelled; 3.42 percent say they are one to three months on hold, suspended or cancelled; and 2.56 percent say all projects have been suspended. 10.26 percent answered “other.”
  • When asked about what safety measures their company has taken in response to COVID-19, 74.36 percent say they have implemented toolbox talks specifically addressing COVID-19; 79.49 percent say they have adopted a COVID-19 exposure prevention, preparedness and response plan; 26.06 percent say they have reduced their job site crews to 10 or fewer; 12.82 percent say they have reduced job site crews to five or fewer; 89.74 percent are practicing social distancing of six or more feet; and 66.67 percent say that office staff is working remotely. 16.24 percent answered “other.”
  • 15.38 percent say they are working on emergency relief projects as opposed to 84.62 percent who say they’re not.
  • For the states that have issued “essential service” guidelines, 69.23 percent of respondents say construction/demolition services have been deemed essential, 11.11 percent say construction/demolition services have not been deemed essential, 13.68 percent say the state direction is not clear, and 5.98 percent said they did not know.
  • 12.82 percent of respondents said their company had furloughed employees, 24.79 percent of respondents said their company had laid off employees, 35.90 percent of respondents said their company was in a hiring freeze, and 47.86 said “none of the above.”
  • 31.62 percent said their operating budget hadn’t been affected by COVID-19, 22.22 percent said they were seeing a 10-percent reduction in revenue, 19.66 percent said they were seeing a 20-percent reduction in revenue, 23.93 percent said they were seeing a 30-percent reduction in revenue, and 2.56 said their revenue projection had increased due to an increase in work related to COVID-19.
  • 36.75 percent of employees said their company was suspending or cancelling equipment purchases and/or capital investments because of COVID-19, 11.97 percent said they weren’t, and 51.28 said they hadn’t yet but would reevaluate if the need arose.

The full NDA survey is available online.