2020 has already been an economy shaking, and society resetting year that will no doubt be looked back at in history as a significant year. In Australia we have experienced the early indicators of a recession at the beginning of the year, bushfires that ravaged the country and caused mayhem. Flooding in parts of the country after regions of the country were experiencing extensive drought. Large storm systems that caused unprecedented insurance claims and damage that is still being rectified. The introduction of COVID-19 to our shores, and the shockwave that the governments mitigation measures have had on employment, business and the economy. International events such as George Floyd’s murder and the Black Lives Matter protesting that followed, highlighting that racism remains systemically present in our society as well.

Oh, and don’t forget the great toilet paper shortage, where panic buying across the country caused, even rational people to find themselves questioning what people thought of them when purchasing an 8 pack of 3ply TP.

That is all very true, but let’s take a look at 2020 through another lens.

Some of the biggest leaps in our organisational and technological progress have come from the drive and the will to power on. Following discussions with a handful of local schools, it is unanimously agreed that the changes that were necessary in adapting to the never before seen circumstances of the Coronavirus pandemic were equivalent to a decade of forced progression, condensed into a matter of weeks.

The ability for businesses to adapt and maintain their current commitments through allowing their staff to work from home is a testament to the age that we live in.

Here are some of the pivots that various industries have made:

• Alcohol distilling businesses and breweries were able to pivot into producing hand sanitizer while there was a shortage.
• Manufacturing companies have pivoted into building critical ventilators.
• Drive in movies are making a comeback.
• Cafes and restaurants are now providing the biggest range of home delivered meals that we have ever seen. 
• Large shoe manufacturers such as new balance pivoted to making face masks.
• Conferences can now be delivered via internet platforms such as zoom, going beyond the internal work meeting.
• Strip clubs have pivoted to food delivery services in Portland, USA called Boober Eats.
• Teachers are delivering Physical Education to the lounge rooms of students.
• And so much more…

For the construction industry in Australia we are yet to feel the full impact of the coronavirus. Over the next 6 to 12 months will be when the ripple effect is felt. We understand this through the conversations that we have had with various designers and engineers, that by and large indicate that their workload begins to be unknown in the July- August 2020 period. This is a significant indicator for the construction industry because if there are no projects being designed, they aren’t making their way to the builders and subcontractors.

Looking forward at the construction industry and its contribution to GDP we are making these predictions:

• The government will stimulate this sector by bringing many of its own projects forward.
• Local governments will begin to accelerate the rate of development approvals that are processed. 
• We will see office projects mitigate the impact of such large scale pandemics by trending away from such large  open plan office designs that have been so prevalent in recent times. (The solution may be in the adoption of more operable wall systems as a contingency measure.)
• When risk mitigating a project, more consideration will go into the supply chain and should incorporate contingency measures if China is a significant supplier.
• We will see the incorporation of Zoom meetings into contract terms, and will provide a great way to facilitate coordination without flooding site boardrooms.
• Cleanliness and sanitisation will become a greater focus for unionised organisations.

So who are the winners and losers?

The businesses that are adaptable, open to change and encourage ‘outside of the box’ thinking will thrive through the coronavirus ripple effect. Service will no longer be commoditised and will be adequately valued along with the relationships that great service creates.

The adopters of the problem solving and over servicing philosophy will be the businesses that win the reduced amount of work in the market place, and many of their competitors that resist will be more likely to go out of business.

The businesses that remain will then be in a prime position to tackle the bounce back when the industry recovers, propelling them into leadership roles in their respective industries.

If you’d like to discuss any of these ideas please feel free to contact us.