According to the BOB Search system for analyzing the impact of Covid-19 on business, the effects of the pandemic on the construction sector in America will not be as severe as in other industries.
The sectors most affected would be entertainment, hotels, and transportation, and unlike these, the construction sector would be feeling its effects but not at such severe levels.
The impact of the COVID-19 on the construction sector is forecast to be explained, to a greater extent, by the expected drop in the business of prefabricated steel structures.
On the other hand, it is forecast that the works of preparation of land for construction will be among the activities that will suffer a greater impact in the coming months. Likewise, another sector that is within those that will be impacted, but to a lesser extent, is the construction of telecommunications works.
The analysis foresees that the installation of signaling and protection in road works and the construction of agricultural irrigation systems would be part of the activities that will be affected.
Since this week, some companies, mainly in the construction and industry sectors, have recovered their activity after the decision made by the Government. But that horizon in which all businesses that require a physical presence are still active seems a bit distant.
Conduct a business impact analysis
When performing any BIA, all levels of leadership in the organization must address these key questions:
- How important is a role in your overall business? Which customers/users and other business units depend on this function?
- Could you lose customers/buyers if this feature is not provided in a timely manner?
- Could there be a significant loss of income if this function is not performed?
- Is there a risk of a fine or substantial penalty if the function is not completed?
- How long can a business or customer service function be delayed before there is an adverse effect?
- Do you trust external service providers (providers) to obtain vital information, products, or services? Could they become inaccessible? Are there contingent backups?
- What would be the impact on your business if these selling agents cannot operate?
- Interruptions affect business units at different times. Some functions or services can be negatively affected in minutes, while others can take hours or days.
The degree of spread of COVID-19 is uncertain. In the unlikely event of facing the worst-case scenario, is your organization prepared for the problems and to answer the questions that are bound to arise?
If you don’t have a Business Continuity Plan (BCP) or haven’t reviewed it in a long time, now is the time to do it. The first step is to identify critical operations and business functions. Because everyone in an organization tends to feel that what he or she does is the most important thing, a formal method is needed to separate essential business functions from non-essential functions that can be suspended during a major business interruption.
Business continuity plans tend to address more common catastrophes (for example, earthquakes, fires, hurricanes, floods) that result in physical damage to property and assets. Communicable disease events require special consideration. Unlike natural disasters, COVID-19 or other communicable disease outbreaks may not always be geographically or temporally linked.