The EIB (Economic Institute for Construction) predicts that the construction sector will be hit worse by the aftermath of the coronacrisis than it was by the financial crash of 2008. 40,000 construction workers are expected to lose their jobs over the next two years, NOS reports.
The problem is not so much the current social distancing measures themselves: most construction work is continuing for the moment, as it is quite adaptable to the current government measures. The problem, according to the EIB, will come after the social distancing rules are lifted.
The disappearance of investment plans
The disappearance of investment plans will be one of the major issues the construction industry faces. This is expected to cause a 15 percent contraction in the industry, as production grinds to a halt in many other sectors as a result of the coronacrisis. Overall, the CBP expects the economy to experience a huge contraction.
Entrepreneurs losing confidence in the economy
Entrepreneurs will also lose confidence in the economy, and decide not to forge ahead with plans to open new businesses, for example. At the very least, building plans will be postponed. “An owner of a catering chain is now only busy surviving and will postpone all plans for expansion of renovations,” says EIB director Taco van Hoek.
Nitrogen regulations won’t help
The construction industry will not be helped by the government’s nitrogen regulations, either, which it was already struggling under before the coronacrisis. However, these regulations are crucial to preserve nature in the Netherlands. It is also worrying that this construction crash will occur when the Netherlands is still struggling with a major housing crisis.
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