The Effects of Coronavirus on the Construction Industry – Reposted from NRCA as of March 12, 2020
According to Trent Cotney, NRCA General Counsel
With no end currently in sight to the extensive outbreak in China of the novel coronavirus (now officially named COVID-19) and the rapid spread of the virus throughout other parts of the world, the U.S. construction industry is already experiencing effects and should brace itself for more to come. Originating in Wuhan City, Hubei Province, China in December 2019 and quickly spreading to over 70 other countries around the world, to date there have been over 3,000 confirmed deaths from the virus and more than 90,000 confirmed cases around the world, with more being reported every day.
Currently there are less than one hundred cases of coronavirus reported in the U.S., and so for now, most American workers are not considered to be at significant risk of contracting the virus. Nevertheless, OSHA has taken the opportunity recently to remind employers that existing OSHA standards apply to protecting their workers from the coronavirus, including, in particular, OSHA’s Personal Protective Equipment standards, 29 C.F.R. 1910 Subpart 1, and the General Duty Clause, 29 U.S.C. § 654(a)(1). OSHA also noted that its Bloodborne Pathogens standard, 29 C.F.R. 1910.1030, is not directly applicable with regard to coronavirus protections because the virus is not transmitted through blood, but it does offer a framework that may help control some sources of the virus including exposure to bodily fluids.
Although not currently a serious threat to the health of the U.S. construction industry’s labor force, the impact of the virus on Chinese production has been devasting for global markets and construction supply chains, as mass public quarantines, curfews, and travel restrictions implemented to help fight the spread of the disease have crippled Chinese manufacturing and shipping sectors, among most others. In particular, Wuhan, a “mega-city” with a population of over 11 million people, is known for producing metal products, mechanical equipment, solar panels and electronics and has 164 manufacturing facilities making products often used by the construction industry, including 13 plants that directly manufacture construction materials. Thus, the question surrounding construction supply-chain problems reverberating from China’s efforts to fight the coronavirus epidemic is not a matter of if but when the effects will hit the U.S. construction industry, how extensive they will be, and how long they will last.
Disclaimer: The information contained in this article is general educational information only. This information does not constitute legal advice, is not intended to constitute legal advice, nor should it be relied upon as legal advice for your specific factual pattern or situation.