Construction industry before and after pandemicvivatechijri
: Since the World Health Organization (WHO) announced the coronavirus2019 (COVID-19) outbreak
as a pandemic, many countries have declared a complete national lockdown after a remarkable spike in COVID
19 cases. These decisions have restricted the movement of people and resulted in a complete shutdown of many
businesses across many sectors. The construction industry, as a significant growth driver of the economy with no
exception, has also been completely shut down. All the developments and projects were postponed until further
notice. It is, therefore, a prudent to address the impact of the pandemic at the outset and end of the crisis to
prepare for any future possibility and gain lessons for plans. This study aims to investigate the effect of COVID 19
on the construction industry’s survival. The impacts and fallout have been determined and evaluated through the
recruitment of construction experts and practitioners. The impacts have been classified into different groups
which include economic, human resources. The study implied two methods include exploratory interviews and
questionnaire surveys. The study found the most prominent impacts of COVID 19 are the suspension of projects,
labour impact and job loss, time overrun, cost overrun, and financial implications. The findings of this study shed
light on the consequences of the sudden occurrence of pandemic and raise awareness of the most critical impacts
which can’t be overlooked. The findings also help project stakeholders to realise the sequences of the sudden
epidemic and prepare for the worst-case scenario during the planning stage of the construction projects. The
problem for the construction and engineering sector in India is aggravated and difficult to address as there is no
standard form or format for contracts followed by the industry.To say that the companies engaged in the
construction and engineering sector, would be affected due to the current unprecedented situation would be an
understatement. The various restrictions put in place by the Governments to control the effects of the virus may
trigger shortage of raw material and manpower, disrupted supply chain, further creating handicaps in performing
contractual obligations. Contraction in consumption demand should be the least of the worries for the sector.
Some elements in construction and engineering are imported from countries, which may be more badly affected,
creating a domino effect on the entire sector
While claiming to learn from the Chinese way of handling the crisis, there is no on-ground action in Pakistan that supports the claim. The Prime Minister denies national lock down despite the fact that without proper lock-down the virus spread trajectory can be rapid resulting in collapse of national health facilities which can bring the national economy to a halt.
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This article looks at the impact to business and manufacturing as a result of COVID19 and tackles some of the areas that businesses will need to focus on in order to navigate a successful path forward.
Construction Industry Through Artificial Intelligence -.docxJIT KUMAR GUPTA
Considering the role, relevance and importance of construction sector in promoting economy, generating employment and creating wealth besides providing infrastructures and amenities, there is need to make the sector more effective, efficient, productive and sustainable. Driven manually, construction sector remains in the slow lane of creating quality built environment which are cost-effective, energy efficient, least consumers of resources and generators of waste. Artificial intelligence can help and empower the construction to make it more valuable, productive and qualitative besides supportive of environment and ecology. However, construction sector must be ready to co-operate and collaborate with IT industry to look for options and opportunities to make construction sector more qualitative and productive. Majority of urban ills and climate related issues can be resolved if Artificial intelligence can be embedded as integral part of the construction industry right prom planning, designing, construction, operation and management of the built environment and infrastructures. Communities and nations will save lot of valuable non-renewable resources if the construction sector is transformed from human led to technology led by the induction of Artificial intelligence. However, Construction industry has to search the areas where Artificial intelligence can be used effectively and intelligently.
Construction industry before and after pandemicvivatechijri
: Since the World Health Organization (WHO) announced the coronavirus2019 (COVID-19) outbreak
as a pandemic, many countries have declared a complete national lockdown after a remarkable spike in COVID
19 cases. These decisions have restricted the movement of people and resulted in a complete shutdown of many
businesses across many sectors. The construction industry, as a significant growth driver of the economy with no
exception, has also been completely shut down. All the developments and projects were postponed until further
notice. It is, therefore, a prudent to address the impact of the pandemic at the outset and end of the crisis to
prepare for any future possibility and gain lessons for plans. This study aims to investigate the effect of COVID 19
on the construction industry’s survival. The impacts and fallout have been determined and evaluated through the
recruitment of construction experts and practitioners. The impacts have been classified into different groups
which include economic, human resources. The study implied two methods include exploratory interviews and
questionnaire surveys. The study found the most prominent impacts of COVID 19 are the suspension of projects,
labour impact and job loss, time overrun, cost overrun, and financial implications. The findings of this study shed
light on the consequences of the sudden occurrence of pandemic and raise awareness of the most critical impacts
which can’t be overlooked. The findings also help project stakeholders to realise the sequences of the sudden
epidemic and prepare for the worst-case scenario during the planning stage of the construction projects. The
problem for the construction and engineering sector in India is aggravated and difficult to address as there is no
standard form or format for contracts followed by the industry.To say that the companies engaged in the
construction and engineering sector, would be affected due to the current unprecedented situation would be an
understatement. The various restrictions put in place by the Governments to control the effects of the virus may
trigger shortage of raw material and manpower, disrupted supply chain, further creating handicaps in performing
contractual obligations. Contraction in consumption demand should be the least of the worries for the sector.
Some elements in construction and engineering are imported from countries, which may be more badly affected,
creating a domino effect on the entire sector
While claiming to learn from the Chinese way of handling the crisis, there is no on-ground action in Pakistan that supports the claim. The Prime Minister denies national lock down despite the fact that without proper lock-down the virus spread trajectory can be rapid resulting in collapse of national health facilities which can bring the national economy to a halt.
Covid 19: Industry Focus: The business impact to manufacturing & where to...Darryl Judd
Never, before in the history of manufacturing has a single event simultaneously and globally affected supply, demand, and workforce availability, causing massive disruptions and uncertainty.
This article looks at the impact to business and manufacturing as a result of COVID19 and tackles some of the areas that businesses will need to focus on in order to navigate a successful path forward.
Construction Industry Through Artificial Intelligence -.docxJIT KUMAR GUPTA
Considering the role, relevance and importance of construction sector in promoting economy, generating employment and creating wealth besides providing infrastructures and amenities, there is need to make the sector more effective, efficient, productive and sustainable. Driven manually, construction sector remains in the slow lane of creating quality built environment which are cost-effective, energy efficient, least consumers of resources and generators of waste. Artificial intelligence can help and empower the construction to make it more valuable, productive and qualitative besides supportive of environment and ecology. However, construction sector must be ready to co-operate and collaborate with IT industry to look for options and opportunities to make construction sector more qualitative and productive. Majority of urban ills and climate related issues can be resolved if Artificial intelligence can be embedded as integral part of the construction industry right prom planning, designing, construction, operation and management of the built environment and infrastructures. Communities and nations will save lot of valuable non-renewable resources if the construction sector is transformed from human led to technology led by the induction of Artificial intelligence. However, Construction industry has to search the areas where Artificial intelligence can be used effectively and intelligently.
The construction industry post COVID.pdfStrategy Here
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With the global pandemic affecting economies throughout the globe its necessary to understand the scenario and paint a picture of the near future to handle it better
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Here is the detailed analysis on economic impact of Covid-19 on India. You'll get enlightened about the losses and impacts incurred on different sectors of society due to lockdown.
And also the mitigation steps by the govt. to fight the invisible foe which entered the human paradise.
Furthermore, Covid may have worst economic recession on India, but every coin has two sides, so as here - the Bright Side, like Atmanirbhar Bharat Abhiyan, Digital India and hundreds of other new opportunities are raised.
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slide 2-5 : Introduction
slide 6-16 : Knowledge Content/Research Work
slide 17-19 : Conclusion
slide 20 : Bibliography
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2. Assess the impact of COVID-19 outbreak on
migrant construction workforce in India.
Construction industry has backward and forward linkages with various other industries like
cement, steel, tiles, wood, furniture, electronics etc. that catalyses employment generation
in the country. There are mainly three segments in the construction industry: real estate
construction which includes residential and commercial construction, infrastructure
building which includes roads, railways, power; industrial construction that consists of oil
and gas refineries, pipelines, textiles .
The construction industry is the second largest employer in India after agriculture. This
sector is highly fragmented and labour-intensive. With the latest assessment the sector
provides employment to approx. 50 million people. Hence the workforce especially the
migrant ones become a key role in supporting this sector.
Objective
Construction Industry: Snapshot
Post Covid-19 situation: Labour Availability on Construction Projects 2
3. The Economic Survey 2016-17 had estimated that at least nine
million people migrate annually within the country, most of
them in search of work, while the recent census says the total
number of internal migrants in the country stands at a staggering
139 million. (Around 35% of this work in construction industry).
Uttar Pradesh and Bihar are the biggest source states, followed
closely by Madhya Pradesh, Punjab, Rajasthan, Uttarakhand,
and West Bengal; the major destination states are Delhi,
Maharashtra, Tamil Nadu, Gujarat, Andhra Pradesh, Telangana
and Kerala.
The migrant demographic occupies one of the lowest paying
Workforce involved: Migrant labour
Post Covid-19 situation: Labour Availability on Construction Projects 3
Migrants in Construction Sector:
In general, districts with higher urbanization rate, have a higher share of migrants in construction work. These include areas around
Delhi-NCR, Gujarat, Maharashtra, Western Madhya Pradesh, Telangana, Tamil Nadu, Karnataka and West Bengal; many of them
concentrated in and around large metropolitan districts like Mumbai, Ahmedabad, Delhi, Chandigarh or Kolkata (see Fig 1 and 2).
Source: 2001 Census
and informal market in key sectors such as construction, hotels,
textiles, manufacturing, transportation, services, and domestic
work. Most of them find work as unskilled labor since they enter
the job market at a very early age. They experience no upward
mobility and remain stagnant in the most unskilled, poorly paid,
and hazardous jobs for their whole work-life span.
There are number of unorganised players in the construction
industry who work on a subcontract/labour contract basis. Lack
of skilled and un-skilled labour in the metros where majority of
construction take place trigger the influx of migrant workforce in
this industry.
Fig 1: Share
of Migrant
Construction
Workers to
Total Construction
Workers
Fig 2: Share of
Inter-State Migrant
Workers to
Total Migrant
Workers in
Construction
4. Not only has COVID-19 triggered a massive public health crisis
but has also brought along with it an equally challenging
economicsituation. Migrant workforce is often left to fend
for themselves with no regular place to stay, no job security
and has challenges in getting support from the social
infrastructure.
Amid, the 41-day lockdown in India, thousands of migrants
tried to return to their place of origin from their place of
employment in cities, even though they were informed to
stay put in their locations by the governments.
Challenges of low wages - Majority of India’s daily wage and
migrant population earns just 30% to 60% of the prescribed
minimum wage of INR 571 to INR 692 (between $7.6 to $9.2)
set by the government for skilled, semi-skilled, and unskilled
workers respectively (*rates prescribed in Delhi)+4
The lockdown situation has made this class more vulnerable
in many ways:
• Lost work/income: As many as 92.5% of labourers have
already lost one to three weeks of work%+5
• Hunger Issue: Over 80% of the country’s migrant and daily
wage population fears they will run out of food before the
end of the lockdown phase. Nearly as many also worry that
they will not be able to find work once the lockdown ends.
• No BOCW Card: More than 80% of the workers have not
registered for the social security umbrella specially meant
for the construction workforce. This has more to do with
the awareness of their own rights.+5
• Debt-ridden: Several migrant workers also have debts to
repay, which are an additional cause of anxiety without a
steady stream of income.
• Mental & Emotional Health Challenges: Added to the
loss of income and hunger issues hundreds of migrant
workers are still living in shelter homes and/or cannot
be with their families. This has triggered a lot of mental
and emotional challenges for them and in turn for the
government and the employers
• Survival of indigenous communities: Reverse migration,
possibly carrying the virus, can have devastating impact on
indigenous communities,” it said adding that it can wipe
out endangered indigenous peoples of India and further,
permanently damage the survival of many communities.
permanently damage the survival of many communities.
Current situation/
During Lockdown
Post Covid-19 situation: Labour Availability on Construction Projects 4
5. COVID-19 has given a new lesson in distance and could lead
to a significant reduction in long-distance migration. Typically,
workers wait for a crisis to be over before setting out again in
search of work, however, considering the nature of crisis, the
waiting period could be much longer this time, and therefore the
impact on labour cost, much larger.
Several migrant workers who fled the big cities may never return,
preferring to eke out a living on their marginal farms or find work
in nearby towns. It would deprive industrial centres of labour for
a long period of time, likely raising the wage burden on small-
and medium-sized units struggling to crawl out of recession.
There may be a second wave of home-coming of migrant
workers once the lockdown is lifted. Many who decided to stay
back are desperately waiting for transport to be available. They
would take off at the first opportunity. That would mean that,
Post Lockdown Scenario
even if those who left earlier decide to return, companies may
find a shortage of labour.
Besides, in addition to the economic fallouts, we can’t obviously
ignore the chances of infection being carried by these migrants
as they return to and from their natives. Keeping that in mind,
the contractors and various other employers will have to
enhance the hygiene of workplaces and ensure a sanitised
environment for all. This would in turn further raise the costs
involved in completing projects, in an already troubled economy.
In fact, we could be in an unknown territory of higher wages, less
demand for labour, As like many industries construction would
also try to move more towards less labour-intensive ways of
output, in the fear of uncertainty and reducing life related risks in
future. The counter view also is prevalent where we might have
more labours returning to urban areas in the near future for want
of work and wages.
Local holidays:
India, being culturally diverse, celebrates various local holidays and festivals across regions; the construction workforce tend to return
to their homes to partake in the festivities and marriages. These holidays in the coming months will also have an impact on the
construction sector.
In a nutshell, we can say that the shortage of labour is inevitable post lockdown in construction sites at least for
several weeks. Lack of manpower and delays in supplies will potentially impact project budgets, compounded by
the “New Normal” of social distancing, stress on health and safety in the working conditions.
Labour camp will never be the same again, where, even ailments like normal flu/ common cold would trigger
suspicion and higher degree of caution. Keeping in mind the density of labour camps, good hygiene and sanitary
conditions would have to be incorporated into the site infrastructure. There is no way we can work completely
“COVID-free” any time before the vaccine hits the market; the measures are here to stay for a long time.
Post Covid-19 situation: Labour Availability on Construction Projects 5
6. Survey
Post lockdown, JLL conducted survey with Indian leading contractors & suppliers and results were
interesting. More than 60% of the contractors predict that the labour shortage will be there for next couple of
months, which will have severe impact on the real estate sector.
Modular / Loose Funiture / Factory Finished Product
Electrical Works
Safety , Security , CCTV and Access Control
Interior ( Civil ) and related joinery works
HVAC Works
Others/ Miscellaneous
0% 10% 20%
15%
12%
10%
9%
8%
49%
30% 40% 50%
Package undertaken
Labour Strength before the lockdown in Jan / Feb ‘20
Percentage
of
Respondents
>2000 500-1000 100-300
1000-2000 300-500 50-100 Below 50
40%
25%
10%
35%
20%
5%
30%
15%
0%
36%
23%
18%
9%
6%
6%
2%
Labour Strength
Labour Strength post lockdown
Percentage
of
Respondents
>2000 500-1000 100-300
1000-2000 300-500 50-100 Below 50
25%
10%
40%
35%
20%
5%
30%
15%
0%
39%
25%
21%
6%
4%
3%
2%
Labour Strength
Current Labour Strength
Percentage
of
Respondents
>2000 500-1000 100-300
1000-2000 300-500 50-100 Below 50
60%
40%
10%
30%
50%
20%
0%
52%
20%
12%
5%
4%
4%
2%
Labour Strength
Labour Return time post lockown
Percentage
of
Respondents
Available 15-30 days 2-4months
0-15 days 1-2months >4 months
60.0%
40.0%
10.0%
30.0%
50.0%
70.0%
20.0%
0.0%
1.7%
5.6%
63.7%
6.1%
21.2%
1.7%
Timeline for Return of Labours
Post Covid-19 situation: Labour Availability on Construction Projects 6
7. One more interesting survey result is that nearly 43% respondents were of
the opinion that there is high chance that the workforce in labour camps in
respective cities might move to their native towns post lockdown.
Respondents expected government to support either on reduction in taxes or
compensation for the struggling sector (refer graph)
Chances of Labours returning to native land
Migrant Labor Source
Help Expected from Govt. for Economic boost
Percentage
of
Respondents
25%
10%
40%
50%
35%
45%
20%
5%
30%
15%
0%
Low
31.3%
Medium
25.1%
High
43.6%
Labour Strength
Percentage
of
Respondents
40
0
100
80
120
20
60
Compensation Reduced taxes Interest free loans Others
45.8%
59.2%
40.2%
5.6%
Labour Strength
Maharashtra,
Rajasthan, North India
Native labours
Orissa, West Bengal,
Northeast states
UP, Bihar, Jharkhand 22%
33%
5%
40%
Whether labor force is able to utilize governement relief
in camps/native?
Don’t know
34.6%
No
42.5%
Yes
22.9%
Post Covid-19 situation: Labour Availability on Construction Projects 7
8. What next?
Monthly ration, financial support, healthcare support & loan waivers are what the migrant workforce is looking at for
turning them out of this crisis.
Measures by Government:
The governments in various states have started relief measures for the labour forces.
As a fall out of this pandemic, a percentage of the workforce may remain in their homes in the hope of monetary/
other benefit schemes coming their way by the governments. This could result in a dilemma that would influence
staying back with families even if it means a lesser financial advantage. For example, the MGNREGA may temporarily
offer solution to the migrant workers; even an optimised implementation of this scheme means 100 days of work.
Considering the above, Mapping of migrant workers for relief measures has already been delegated to state
governments by the central ministry. The database will also help the central government to make arrangements to
transport workers to their homes from relief camps or bring them to cities for work, if they desire.
Post Covid-19 situation: Labour Availability on Construction Projects 8
9. Thought for future
While this pandemic has caught the entire world
completely unprepared, future BCPs need to be built
on mitigating vulnerabilities of the workforce, with
stronger emphasis on easy access to social security,
localisation, and analysis for rapid response to such
scenarios and robust private public partnerships.
Ensuring that the workers are aware of and have other
necessary resources/documentation to avail benefits
is equally important. Construction sector should
come along with the government agencies to help
the labours at this crisis and formulate a strategy post
covid-19 scenario as a new normal will set in from now.
Apart from improved implementation of statutory
norms like BOCW, ESI/PF; Developers & contractors will
start thinking of giving incentives to labours. Various
parameters from insurance, health check ups, labour
camps, faster mechanisation, technology adaption etc
will go through deep assessment and revalidation.
Post Covid-19 situation: Labour Availability on Construction Projects 9
10. Notes / References
a. References have been taken
from several publications by
government agencies, as well as
reports published in magazine and
newspapers across the country.
b. Distribution of migrant labour from
the origin states in Kerala which
has one of the largest migrant
population vis a vis the residents
State Percentage share
Uttar Pradesh 14.83%
Assam 20.28%
West Bengal 15.00%
Bihar 18.10%
Orissa 8.67%
Others 23.13%
Post Covid-19 situation: Labour Availability on Construction Projects 10
11. Authors
Design
Jipu Jose James
jipujose.james@ap.jll.com
Jipu Jose James
jipujose.james@ap.jll.com
98840 32233
Sunita Rajeev
sunita.rajeev@ap.jll.com
About JLL
JLL (NYSE: JLL) is a leading professional services firm that specializes in real estate and investment management. JLL shapes the
future of real estate for a better world by using the most advanced technology to create rewarding opportunities, amazing spaces and
sustainable real estate solutions for our clients, our people and our communities. JLL is a Fortune 500 company with annual revenue
of $18.0 billion, operations in over 80 countries and a global workforce of more than 93,000 as of December 31, 2019. JLL is the brand
name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit jll.com.
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JLL is India’s premier and largest professional services firm specialising in real estate. With an audited revenue in excess of 4000 crores
for FY 2018-19, the Firm is growing from strength to strength in India for the past two decades. JLL India has an extensive presence
across 10 major cities (Mumbai, Delhi NCR, Bengaluru, Pune, Chennai, Hyderabad, Kolkata, Ahmedabad, Kochi and Coimbatore) and
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Soorya Vijayamma
soorya.vijayamma@ap.jll.com
Rama Murthy
rama.murthy@ap.jll.com
Sabyasachi Chatterjee
sabyasachi.chatterjee@ap.jll.com
98198 82101
Arumugam Deviprasadh
deviprasadh.arumugam@ap.jll.com
Monika Vaswani
monika.vaswani@ap.jll.com
For any business enquiries, reach out to
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