In the first quarter of 2020, prior to the onslaught of the pandemic, the nation’s construction industry was thriving, adding more than $900 billion in gross domestic product (GDP) revenue to the United States economy. Both this revenue and high employment levels were the best the industry had seen since 2008.
Then COVID-19 reached the U.S., causing the industry to lose both billions in GDP revenue and a significant number of workers. Unlike the 2008 recession, the industry seemed well-positioned to weather the economic shock. It appeared that the overall industry had improved since 2008, with better controls over financing, enhanced levels of credit capacity and generally healthier controls over operating costs. The CARES Act and related Paycheck Protection Program (PPP) loans provided many firms with some much-needed financial support. And since then, there have been additional stimulus packages, including the most recent $1.9 billion program that hopes to improve the economy and the construction industry.