Covid’s Impact on Construction
In this study, we will take a look at key indicators to understand the performance of the construction industry amidst the 2020 pandemic.
This fascinating report showcases the short negative impact in March 2020 but the explosion in construction demand thereafter, long into 2021 and still growing while you read this today.
Total value of construction a month
- As the charts and tables below suggest, the total value of constructions put in place recovered steadily from the 2008 financial crisis, with a few notable decline, including the Q2 of 2020.
- By the start of 2020, total monthly construction value amounted to $1,459.4 billion a month, growing from $1,348.7 billion a month from January 2018. The lowest value in 2018 to November 2020 is November 2018, with a Total construction value of $1,287.8 billion a month.
- By the end of November 2020, total construction value grew back up to $1,459.44 billion a month, the highest value the indicator ever reached for the sector.
Date | Total Construction in Millions of Dollars |
|---|---|
| Nov-20 | |
| Oct-20 | |
| Sep-20 | |
| Aug-20 | |
| Jul-20 | |
| Jun-20 | |
| May-20 | |
| Apr-20 | |
| Mar-20 | |
| Feb-20 | |
| Jan-20 | |
| Dec-19 | |
| Nov-19 | |
| Oct-19 | |
| Sep-19 | |
| Aug-19 | |
| Jul-19 | |
| Jun-19 |
Date | Total Construction in Millions of Dollars |
|---|---|
| May-19 | |
| Apr-19 | |
| Mar-19 | |
| Feb-19 | |
| Jan-19 | |
| Dec-18 | |
| Nov-18 | |
| Oct-18 | |
| Sep-18 | |
| Aug-18 | |
| Jul-18 | |
| Jun-18 | |
| May-18 | |
| Apr-18 | |
| Mar-18 | |
| Feb-18 | |
| Jan-18 |
Total value of construction a month
Gross output is the revenue of an industry. It is calculated as the value of sales minus the value of goods used to produce those sales.
How did the Construction Sector Perform BEFORE the Pandemic?
The gross output of the construction sector steadily grew in terms of Gross Output, peaking at $1775.9 billion a month in first quarter of 2020, the highest value the indicator ever reached for the construction sector.
How did the Construction Sector Perform BEFORE the Pandemic?
- The growth of every industry either slowed down or took a dip during the second quarter of 2020.
- The Real Gross Output of all industries combined declined by 29.5%, equating to $2.86 trillion of losses in terms of revenue.
- Out of 20 sectors, only the Finance and Insurance sectors grew with a positive rate during Q2 of 2020.
How did the pandemic affect the revenue of the construction sector?
- During Q1 of 2020, the Gross Output of the Construction sector increased by 11.4%, reaching $775.9 billion.
- During Q2 of 2020, the Gross Output of the Construction sector took -13.7% dip, equating to $51.3 billion of losses in terms of revenue.
- During Q3 of 2020, the Gross Output of the Construction sector increased back up to $1751.1 billion.
- Although $51.3 billion worth of losses is bad news for the sector, the Construction sector was not hit as hard as other sectors. Out of 20 sectors classified by NAICs, the Construction sector was not hit as hard as 13 other sectors.
Construction Gross Output in Billions of Dollars
| 2018 Q1 | Q2 | Q3 | Q4 |
| 1621 | 1658.8 | 1659.6 | 1633 |
| 2018 Q1 | Q2 | Q3 | Q4 |
| 1621 | 1658.8 | 1659.6 | 1633 |
| 2019 Q1 | Q2 | Q3 | Q4 |
| 1667.4 | 1678 | 1695.8 | 1718.7 |
| 2019 Q1 | Q2 | Q3 | Q4 |
| 1667.4 | 1678 | 1695.8 | 1718.7 |
| 2020 Q1 | Q2 | Q3 |
| 1775.9 | 1709.9 | 1751.1 |
How did the construction sector compare to other industries?
- In terms of percentage change, the construction sector increased the largest during Q1 of 2020.
- In terms of percentage change, out of 20 sectors classified by NAICs, the construction sector did better than 14 other sectors and did worse than 5 others during Q2 of 2020.
Sector | Q1 Percent |
|---|---|
| Construction | |
| Agriculture, forestry, fishing, and hunting | |
| Real estate and rental and leasing | |
| Utilities | |
| Government | |
| Finance and Insurance | |
| Professional, scientific, and technical services | |
| Wholesale trade | |
| Mining | |
| Management of companies and enterprises | |
| Information | |
| Manufacturing | |
| Administrative and waste management services | |
| Educational services | |
| Health care and social assistance | |
| Retail trade | |
| Transportation and warehousing | |
| Other services, except government | |
| Arts, entertainment, and recreation | |
| Accommodation and food services |
Sector | Q1 Percent |
|---|---|
| Accommodation and food services | |
| Arts, entertainment, and recreation | |
| Transportation and warehousing | |
| Other services, except government | |
| Wholesale trade | |
| Health care and social assistance | |
| Manufacturing | |
| Retail trade | |
| Administrative and waste management services | |
| Professional, scientific, and technical services | |
| Educational services | |
| Information | |
| Agriculture, forestry, fishing, and hunting | |
| Real estate and rental and leasing | |
| Finance and insurance | |
| Construction | |
| Management of companies and enterprises | |
| Government | |
| Utilities | |
| Mining |
Sector | Q2 Percent |
|---|---|
| Finance and insurance | |
| Utilities | |
| Management of companies and enterprises | |
| Government | |
| Information | |
| Construction | |
| Real estate and rental and leasing | |
| Agriculture, forestry, fishing, and hunting | |
| Retail trade | |
| Manufacturing | |
| Professional, scientific, and technical services | |
| Educational services | |
| Administrative and waste management services | |
| Wholesale trade | |
| Health care and social assistance | |
| Mining | |
| Other services, except government | |
| Transportation and warehousing | |
| Accommodation and food services | |
| Arts, entertainment, and recreation |
Construction Sector and Employment
- In terms of employment, the construction industry was in a path of constant growth, peaking in a total of 7.6 million workers in February 2020.
- The total number of workers dropped to 6.6. million by April 2020, but is steadily recovering.
- Partial November 2020 suggests that the construction sector recovered back to 6.4 million workers.
| Year | Jan | Feb | Mar | Apr | May | Jun |
|---|---|---|---|---|---|---|
| 2010 | 5580 | 5500 | 5537 | 5553 | 5520 | 5516 |
| 2011 | 5427 | 5451 | 5477 | 5485 | 5516 | 5528 |
| 2012 | 5626 | 5629 | 5625 | 5618 | 5604 | 5621 |
| 2013 | 5746 | 5784 | 5802 | 5796 | 5829 | 5855 |
| 2014 | 5985 | 6007 | 6038 | 6084 | 6109 | 6133 |
| 2015 | 6320 | 6361 | 6334 | 6392 | 6427 | 6441 |
| Year | Jan | Feb | Mar | Apr | May | Jun |
|---|---|---|---|---|---|---|
| 2010 | 5580 | 5500 | 5537 | 5553 | 5520 | 5516 |
| 2011 | 5427 | 5451 | 5477 | 5485 | 5516 | 5528 |
| 2012 | 5626 | 5629 | 5625 | 5618 | 5604 | 5621 |
| 2013 | 5746 | 5784 | 5802 | 5796 | 5829 | 5855 |
| 2014 | 5985 | 6007 | 6038 | 6084 | 6109 | 6133 |
| 2015 | 6320 | 6361 | 6334 | 6392 | 6427 | 6441 |
| Jul | Aug | Sep | Oct | Nov | Dec |
|---|---|---|---|---|---|
| 5508 | 5524 | 5501 | 5508 | 5506 | 5467 |
| 5547 | 5552 | 5584 | 5588 | 5593 | 5611 |
| 5632 | 5648 | 5661 | 5661 | 5684 | 5724 |
| 5859 | 5878 | 5910 | 5910 | 5963 | 5932 |
| 6178 | 6210 | 6242 | 6259 | 6272 | 6293 |
| 6472 | 6490 | 6508 | 6547 | 6598 | 6630 |
| Jul | Aug | Sep | Oct | Nov | Dec |
|---|---|---|---|---|---|
| 5508 | 5524 | 5501 | 5508 | 5506 | 5467 |
| 5547 | 5552 | 5584 | 5588 | 5593 | 5611 |
| 5632 | 5648 | 5661 | 5661 | 5684 | 5724 |
| 5859 | 5878 | 5910 | 5910 | 5963 | 5932 |
| 6178 | 6210 | 6242 | 6259 | 6272 | 6293 |
| 6472 | 6490 | 6508 | 6547 | 6598 | 6630 |
Takeaway
Q1 2020
Indicators including Gross Output and Total Construction Value Put in Place suggest that the construction sector was doing great before Q2 of 2020 when every other sector declined.
$5,703,527 billion
construction value put in place
$1775.9 billion
gross output a month
7,639,000
peaked number of workers in February
7,639,000
Was the sector with the highest percentage increase in Gross output
Q2 2020
Just like every other sector, the construction sector had a rough second quarter, with the following statistics:
$5,578,846
construction value put in place. There was a decline in this particular indicator, but the value is still higher compared to other time periods from other years.
$1709.9 billion
Gross output a month, the lowest since Q4 of 2019
6,566,000
workers in April (end of first quarter), the lowest number of workers since 2016
6 out of 20
sectors in terms of percentage change in revenue. However, the sector still had a negative percentage change (-13.7%). Only the Finance and Insurance sector had a positive percentage change.
Q3 2020
The construction sector saw recovery during the third quarter:
6 out of 20
sectors in terms of percentage change in revenue. The sector had a positive percentage change (4.4%)
$1751.1 billion
Gross output a month
6,556,000
peaked number of workers in August based on partial data
