How Omicron (Coronavirus Variants) - Destroying the Construction Industry

Do you know how omicron destroying the Construction Industry, and reported cases in India are increasing faster?

In this blog, we’ll talk about the past Experiences-How the construction industry had impacted and this time (with Omicron Disruption) up to what extent it will impact. 

Keeping these in mind, the Government of India has made a plan to maintain Economy balance. Therefore, they would be creating massive job opportunities for the Engineers in the construction industry even after being hit by the new variant. 

So read till the end.

Due to the first lockdown

Within a few days, what we faced was every construction industry had to shut immediately. We saw it displaced and troubled the labor most.

(First Nationwide Lockdown from 24^th March 2020)

In March 2020 was severe and brought the economy to a grinding halt. 

Here we’ll talk about the first time when the government of India ordered to complete Lockdown after 24^th march 2020. Here are the Few Points which will clarify why the construction industry had to suffer the most due to the first Lockdown.

Advance Payment to Suppliers- The Construction industry had paid advance money to suppliers to hire laborers. Even the labor suppliers gave the extra money to laborers for the upcoming works. So There was a lot of advance on labor too.

Labors Went Home- When the Lockdown was imposed, most works went to their house. And you know labors have no registration. So it’s not sure that they would have come back again and joined the same company. Also, it is not possible to work for the advance payment given by the suppliers earlier. 

Company Lost the Money- Whatever the company has invested- lost all the money. Due to sudden Lockdown, Construction industries lost their contracts from new clients. They didn’t get the money from clients as they weren’t ready to pay during the Lockdown and save for an emergency.

Construction Industry Stopped- If the Construction Company had completed the work, the Client would pay the money. But due to the Lockdown, work hasn’t been completed,  clients didn’t even pay due to which the running industry come to a stop.

Engineers

The first Lockdown Certainly Affected the Civil Engineers too.

• Engineers in the Marketing or Sales- The engineers who mainly created money have stayed in the industry, and their numbers were meager. 
• Engineers Fired from the Companies- Most construction industries stopped, and the job ended.
• Industry Life cycle Begins- After June-July 2020 when Government unlocked, construction companies started, and the industry tried to grow again. Hired laborers, hired engineers-and works began.

2^ND Wave Corona Virus- April 2021

With the highest number of cases has been identified in India within a week, again Government had taken steps to impose Lockdown. 

The second was more calibrated and did not impact construction activity. 

But this time, due to the Government's awareness-People were more concerned about safety. Besides this, the below points will clarify how it has impacted the construction Industry.

• Labour- This time (after July), laborers were not migrating, so the industry ran well without error.
• Businesses Invested Money-Again businesses have revamped the industry– they started new projects, hired new laborers, hired engineers as an industry will never stop because the economic system has to work flawlessly.
• Import Export stopped- Why Cost of Graphic cards Increases? Because the import and export of silica stopped, the market bears the shortage.
  
• Price Increases- Peoples Stored more graphics card- Extra Demand and less in supply-Eventually increase to double or triple rate. Same with construction Industry - price increases. Such as Prices of cement, steel, wire, paint, and labor increases which are not affordable by people.
  
• Low Bank Interest Rates- As the prices of the materials went up, they went pale were no spending money. So the banks reduce interest rates, and people will take loans and spend, then only the economy will run smoothly.

Omicron (Coronavirus Variants)-Affect

3^rd Wave-Not yet But will affect-

The impact is likely to be less if there is a calibrated lockdown and not a complete economy shutdown. 

While in severe cases, it could be a complete lockdown, everything would depend on the preparedness to handle Omicron patients and how robust its public health infrastructure is. 

But as Omicron is Destroying the construction Industry, these points are essential to highlight-

1. Why should people not spend money? - It will cause people not to spend money and save more. If People don’t spend the money, the Business will not get the money. And if the Businesses will not get the money, they’ll not hire people, so no recruitment and no appointment.

2. Import Export affect- As the unbalance in the demand-supply chain (Extra Demand and less supply), definitely prices will go up, and people will not spend money on the Industry.

3. People compelled to make Money- Despite omicron spread, many peoples and Industry will do the job in the construction industry. So the omicron will spread due to avoiding social distancing. 

4. Mental Precaution- According to the sources, it could be safe using the Mask, but chances of spreading are sure as you touch the Mask. Therefore, the Mask is just a mental precaution only. The dustbins you’ll use again will be the reason for the harmful virus. So, Taking a vaccination and mental preparation will only stop you from this disease. 

 5. When business owners would be mentally strong- Mentally prepare with the idea that-now the corona will not spread anymore, and we have to spend money on the market and increase the facilities. 

6. People should focus on health and investment- They should concentrate on necessities- meaning, people must not spend money on stuff like cars, bikes. Instead, they should spend money on health and save for future investment. In this scenario, People will not spend money; after that, the Business will not grow, so no demand, no hiring, and unemployment will increase in the 3^rd wave.

With these uncertainties, the government launched a robust plan for the Construction Industry to develop the national infrastructure and create massive Job Opportunities. 

The name of the Program is “Pradhanmantri Gati Shakti Yojana.”

“PM Gati Shakti Yojana”

This is a common platform for the Big Infrastructure to help the Industries and increase employments by providing Jobs. It includes the following insights-

• The government will spend 111 lakhs crore rupees (approx-1 trillion), India’s GDP of 33.33 %.
• Also Included are Construction like Rail, Road, and Port. 
• Highway network expands up to 2 Lakhs, 200 new airports (Helipad, water aerodrome)-completed within 2024-25.
• 11 Industrial corridors, two new defense corridors, and a 17,000 Km gas Pipeline network to be laid.
• And there are many decisions to take.

If you want to Know about Detail Civil Engineering practical Training Program-Click here! 

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