Builders and construction supply chains who rely on offshore material are at risk of production delays due to the global Coronavirus.
When many Chinese production factories temporarily closed in early February, this resulted in what was to be the beginning of major construction delays.
In early February we reported that a knock-on effect from the factory closures was inevitable.
Reports suggest that it is now more difficult to send equipment from China to Australia when goods are being restricted by the Australian Government.
According to the Australian Financial Review, Australian builders are already starting to feel the effect of the virus with their building schedules being significantly delayed.
These major delays will push back production for some companies by months and will come at the company’s own expense.
The AFR now reports that construction projects are at the mercy of their supply chain and can trigger delays worth up to $200,000 per day on the largest building sites.
For builders based in Australia, the virus will not only affect production timelines and increase costs but put a potential strain on client relationships.
For many Australian builders, meeting production deadlines is already a shared challenge in the industry.
CEO of Master Builders Victoria, Rebecca Casson, was quoted, “Many of our members are understandably concerned that the effect of the coronavirus might slow down the availability of materials and this will impact the delivery of building construction projects,”.
She says that Master Builders Victoria is “Looking at different supply chain markets like Europe and locally to ensure that they can still get product.”
It is unknown when access to products such as joinery, facade materials and structural steel from China will be available in their normal volume.
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