A Post Pandemic Construction Tsunami Could it be on its way?
No one knows for sure what the next few months have in store for the transportation market or the construction industry. Although some may have theories, it may be too soon to make any predictions. In the age of the coronavirus pandemic, this is the time leaders need to serve the needs of their clients. We can not always focus on the national media news, we need to focus on what is happening locally otherwise decisions for your company could be jeopardized. It is important that leaders consider how the coronavirus is affecting their specific markets and their geographic area and make specific decisions accordingly. Now more than ever companies need to wrap their head around what they actually believe about the coronavirus and start to make decisions on how that’s going to affect their markets. Go out and do an assertive needs assessment with your clients.
There are always the obvious reasons for change due to the cause of the coronavirus. Every disruption provides potential and opportunity. It is important that leaders get past fear and concern and out of survival mode. Getting a little bit above the clouds to be able to see how some of their clients’ needs are changing and be able to provide something better or different. Most people don’t change when everything’s bright and sunny, they change when they’re forced to. If we had a crystal ball for the transportation and construction industry we might see this in the next few months:
- Concerned about the number of projects currently in progress and also project starts that have been delayed but not canceled.
- With the amount of capital that’s being pumped into the marketplace and interest rates so low right now, capital is pretty inexpensive.
Customers are looking at how their backlog is going to be affected, and what they are realizing is that in the July-September timeframe, there’s going to be a big head-on collision of stuff that has to get done and stuff that needs to start. That is making it really difficult for clients to decide how to handle their overhead because over the next three or four weeks, there’s a waiting period. Many analysts think a “construction tsunami” is very likely in a lot of markets over the next six months.
When and if that happens, ports, rail, and all other transportation-type industry sectors are going to see significant demand. Even though a lot of us are in survival mode right now, we as leaders need to get a little bit above the clouds and realize this crisis is going to provide a lot of opportunities. There’s potential that’s pent up that we think is going to significantly help grow our industry and maintain this phenomenal strength that we’ve seen since 2012.
Source: DeWayne Ables, founder, and president, Pioneer IQ
Jenny Lescohier, International Construction
Transportation Agency Awards $500 Million to Support Transit and Intercity Rail
Thank you to our SCPFJ Chairman, David Garbarino for providing this release
Senate Bill 1 and Cap and Trade Dollars Support Transit Enhancements throughout the state
The California State Transportation Agency recently announced it has awarded $500 million to 17 recipients in Transit and Intercity Rail Capital Program (TIRCP) grants for transformative transit and rail projects. The funding for these projects will be provided for their design and construction, and is complemented by investments of federal, local and other state funds. In total, the projects receiving funding leverage more than $4.9 billion in additional investment.
Transforming Southern California – this program of projects makes significant investments in increased rail service on the Metrolink Antelope Valley Line (including demonstration of zero emission rail service), and acquires 48 zero emission buses for expanded services operated by Antelope Valley Transit Authority, Long Beach Transit, Torrance Transit Department, Santa Monica Big Blue Bus, and on the new West Valley Bus Rapid Transit system in San Bernardino county. It also invests in connecting new housing, existing neighborhoods and sports and entertainment venues, including those being used for the 2028 Olympics, to the Los Angeles Metro Rail system with a 1.6-mile automated people mover in Inglewood. Finally, the program invests in more efficient and reliable San Diego Trolley service, and moves the maintenance operations for Amtrak trains in San Diego to a new facility that will allow more and longer trains to be operated in the corridor, enabling significant ridership growth.
To read the full press release click here