Metal Architecture, Jan 2021

16 METAL ARCHITECTURE January 2021 metalarchitecture com SPECIAL FEATURE As we enter the new year the unprecedented events of 2020 will remain with the industry and the world for a long time Recent news is promising early success appears to have been made with upcoming vaccines and a sense of normalcy may be in sight but lingering questions remain From a business perspective most of those in metal construction appear to have weathered 2020 well Most individuals in my circles appear to have stayed strong throughout the year in both incoming sales and shipments My most concerning aspect as we move forward is that the reported number of new construction starts in the nonresidential sector for 2020 are down about 25 compared to 2019 according to information from industry sources At some point in 2021 this number is bound to catch up to those in this market segment Though the drop in nonresidential construction will catch up to us at some point in 2021 the effects of the depressed starts in 2020 will be spread out during the latter half of 2021 and into 2022 The one shining star for our industry for 2020 appears to be in the residential sector for both remodeling and new construction In addition various sectors of the construction market such as lodging higher education and retail will lag behind the anticipated second half recovery until the COVID 19 pandemic subsides while other market segments such as health care warehousing and manufacturing should be the market leaders Another area that shows promise is multifamily housing which is beginning to pop up in suburbs around the urban hubs As the remote workforce has pendent on tuition fees will suffer a setback as more students embrace online instruction and foreign students pay more attention to alternative options in other countries Health care construction looking forward will benefit from several factors Therere the demographics of an aging population that will increasingly need more procedures With the Democrats installed in the White House threats to the Patient Protection and Affordable Care Act will recede providing more assured revenue streams for hospitals Design flaws in seniors and nursing homes and prisons for that matter will demand correction to allow for isolation of residents requiring specialized care in the event of a next viral infection outbreak Also speculation concerning pent up demand arising in residential construction has nothing on the backlog of medical case work that has been piling up All manner of elective surgeries have been postponed while emergency room resources have been harnessed to stem the spread of the coronavirus Knowing that inoculations in 2021 will beat back the coronavirus assault those moments when pent up demand in key corners of the economy will be unleashed are becoming tantalizing closer ITS NO LONGER THE OLD RETAIL There are two major components to the consumer spending in the economy that accounts for 70 of U S GDP Spending on services such as meals out and vacations away from home is where the deepest cuts have been felt Expenditures on most retail goods though have exhibited astonishing resiliency Theyve been one of the few pockets of the economy to demonstrate the much talked about and beloved V shaped recovery A Slow Beginning and a Strong End to 2021 By James Bush CSI Chair Metal Construction Association gained favor many current renters and homeowners are trading their trendy downtown smaller units for more open and larger floor space to accommodate their stay at home lifestyle Whether in manufacturing or the trades our industry will continue to experience a shortage in the workforce As an industry we must face this problem collectively to ensure that the construction and manufacturing sectors offer well paid career options We need to establish accredited training programs that will enable individuals to come into the workforce well trained and proud of their career path Our efforts must be broad based appealing to students in their developmental years of schooling but also to those in academia showcasing an alternative to a costly four year continuing education I believe that we will not experience any immediate drastic changes in government policy that will affect our industry For the short term current tariffs likely will remain in effect our tough stance on China will stay in place and material prices will remain high for the first half of 2021 A strong infrastructure bill is needed to aid in the economic recovery creating jobs and higher wages for those currently not employed The events of 2020 may cause a slight setback in 2021 from the growth we have seen over the past few years However moving into late 2021 and into 2022 I expect the recovery to be underway in many of the market segments to allow for a positive future for our industry James Bush CSI is the vice president of sales and marketing at ATAS International Inc Allentown Pa He is also the current chairman of the executive committee for the Metal Construction Association MCA Bush has previously served as the chairperson of the MCA roofing council MCA retrofit council MCA roofing certification committee and as the past organizer of the demonstration area at METALCON the industrys major trade show and conference for many years He was inducted into the Metal Construction Hall of Fame in 2014 and was the first recipient of MCAs Patrick R Bush Service Award in 2011