Federal Reserve Bank of MN Survey on COVID-19 Impact

By Mark Severson, MC&MCA Director of Membership & Promotion

Early in April, our MC&MCA contractor members were asked to participate in a survey distributed by the Federal Reserve Bank of MN on COVID-19's impact on MN construction. This survey was sent to the members of 18 Minnesota construction industry associations, with 675 individual companies responding to the survey. The consensus is that the virus is continuing to create delays and worker layoffs.

  • Approximately 2/3 of respondents are seeing project delays, albeit most of these are small and typically related to the project viability stemming from the virus outbreak.
  • A small percentage of respondents cited shortages of labor and materials.
  • Many delays are directly related to virus-related protocols instituted by state government.
  • To date 43% of respondents have had to layoff some staff.
  • When the question of solvency was asked, 23% stated they could remain solvent for less than three months under current conditions. Less than 1 percent stated they could stay solvent for less than 1 month compared to 5 percent of businesses in general.

Overall, the construction industries outlook remains sour, according to this survey.

I would like to thank John Nesse and his entire staff for the multiple updates they have sent out trying to keep all up to date on the COVID-19 issues.

Thank you to all of our MC&MCA members that took the time to participate in this survey.