Fear has a potent ability to drive our actions today, our plans for the future, and the confidence we feel about our current situation. In fact, a recent Harvard study concluded that “Fear and anxiety have a habitual component to them — the memory of something that provoked fear in the past will trigger a habitual fear response when we are reminded of the event, even if there is no actual present-moment threat.” Our current world puts this idea to the test. And although there is much these days that can provoke fear and anxiety, there are also glimmers of hope that the construction world is poised for a turnaround.
A recent Construction Dive article cites the conclusions of Keith Prather, who developed the Fear and Recovery Curve model to determine when the current crisis will peak. His predictions are “predicated on the idea that once Americans’ worries over the risk of dying from the coronavirus dissipates due to treatment options, society can return to normal.” The article predicts some of the impacts that will affect the construction industry by the latter half of 2020:
- “… there will be a lot of reshoring back in the U.S. where we’ll see an increase in our manufacturing ability here…”
- “This in turn will create a surge of new manufacturing- and supply chain-related construction projects…”
- “Pent-up demand from the current construction shutdowns will lead to a “construction tsunami” beginning in the third quarter, driven by historically low interest rates and a “tremendous amount of liquidity being pumped back into the market”
As we noted in a previous blog article, those firms that can adopt an entrepreneurial mindset and carefully optimize their assets will thrive the most when the dust clears. In Keith Prather’s words, the “ability to quickly pivot will allow design build teams to seize opportunities as they arise.”
And you are certainly not alone in the fight to weather the current circumstances. Organizations such as the AGC have stepped in to provide encouragement to keep the construction industry afloat. The CEO of the AGC, Stephen E. Sandherr, issued a statement warning that “Given the precautions already in place, halting construction will do little to protect the health and safety of construction workers. But it will go a long way in undermining economic vitality by depriving millions of workers of the wages they will need over the coming days.” Following that reasoning further, he continues “At the same time, these measures have the potential to bankrupt many construction firms who have contractual obligations to stay on schedule.”
The AGC, in particular, has stated the goals of opposing legislation not friendly to the construction industry, and to work for the protection of construction business. But even with the national industry support, there are things you still need to do to protect your interests.
In general, having costs, values, and rates in hand for your fleet, such as internal charge rates, active/standby rates, retail rental rates, and current market values can help you prepare so when the storm passes (and even before), you are ready to step forward on the strongest footing. In this case, knowledge is power, and having accurate and quality data available is indispensable.
To learn more about how we can help make better decisions on these issues in these uncertain times, schedule a free demo with us. Learn more.
Brand Marketing, EquipmentWatch