Recently, MNP, a Canadian tax, accounting and consulting firm, published an interesting article titled How COVID-19 Impacts the Construction Industry which covered several relevant issues that the construction industry is facing due to the pandemic we are in. We wanted to share some of their useful findings with you here.
Impact on Construction Industry
The construction industry has certainly felt the impact of COVID-19, and is having to find ways to work safely with fewer workers on-site. Construction and renovations on new homes have either been delayed, slowed down, or stopped completely because of reduction in the supply chain and reduced workers.
Maintaining Businesses
The best solution that has been suggested by home builders is to know what your cash flow looks like for the next 13+ weeks. It is imperative to know how much money your business has, and what the budget priorities are, especially with all the uncertainty and regulations we’re facing. It is important to discuss your finances with an accountant as the federal government has announced several deferment plans, which may keep more of your money in your pocket.
Several governmental and business initiatives have been set up to support the construction industry by offering loans and programs to small and medium sized businesses that will provide up to $40 billion in additional lending. These include the Canadian Emergency Business Account (CEBA), a partner program with the BDC and financial institutions to co-lend money, and EDC providing guarantees to financial institutions that issue new operating credit and cash flows.
Support For Employers & Employees
Another aspect to remember is that once the pandemic is over, there will be a huge increase in demand for construction and supplies. In order to focus on the future needs, businesses need to assess their work force and make sure that they have the right staff for the jobs.
The SFTec team wants your business to thrive, so if you need further details, you can find the full article by MFP here. If you have any questions, you can reach out to us here.