Construction workers with Mike Riddle Construction build a home in Salem. (Amanda Loman/Salem Reporter)
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Rich Duncan said his Salem commercial construction company has continued working on most of its job sites open during the COVID-19 outbreak. But he can’t keep hand sanitizer around.
Duncan, the president of Rich Duncan Construction, said people break into job sites and rip the dispensers of the now-valuable commodity out of portable restrooms. His company has instead had to build hand-washing stations with utility sinks and a water heater.
While businesses across the state face uncertainty after a state order closed or restricted many businesses in response to the pandemic, Salem’s construction industry is mostly chugging along.
Companies report they are enacting social distancing measures, requiring workers to wear face coverings and doing more cleaning and sanitizating at job sites. While some companies have had to delay jobs, there’s also optimism that the industry will bounce back once the outbreak is contained.
“I think it’s going to be fast and furious when it gets switched back on,” said Duncan, whose company has been in business for 18 years and has worked on medical clinics, schools and buildings downtown. He said he has 15 projects under contract.
In December, the Oregon Employment Department reported that the construction industry had record employment as more building permits were approved. For most of 2019, about 108,000 people were working in the construction industry, which was expected to stay robust in 2020.
But it’s an industry that’s been hit as others have. Numbers released by the department last week show that workers in the industry generated 9,186 claims for unemployment benefits since March 15.
That’s fewer than the 40,583 generated by the leisure and hospitality industry, the largest source of claims, and the 21,290 generated by education and health services, the second largest.
“It’s a bit of a mixed bag,” said Mike Erdmann, CEO of the Home Builders Association of Marion & Polk Counties. “But by and large the construction industry is continuing.”
He said that most projects are continuing while some may have slowed down. Some contractors are trying to reduce the number of employees on the job site to allow for social distancing measures, which in turns means the work can take longer.
Washington state shut down construction businesses to contain the spread of the virus. Erdmann pointed out that in Oregon the construction industry has been allowed to continue as long as employers follow social distancing and other requirements.
Duncan said that while 40% of his company’s work has been delayed or put on hold, he hasn’t shed any of his 36 employees. He said the delayed projects have been in food service or restaurants, which have been hard hit under a state order requiring them to limit service to take out.
He said he’s keeping employees with the expectation that there will be a backlog of work once the restrictions ease up. He said he hasn’t had issues with suppliers or subcontractors.
Duncan said his company is working with subcontractors to ensure that social distancing requirements are followed. He said his company has a safety officer who walks around with a six-foot stick to show how far apart employees should be standing.
Employees are wearing face coverings, gloves and are following handwashing requirements he said.
“The thing we just ordered were thermometers, so that if we have signs of concern, we can take their temperature,” he said.
Mike Riddle, the owner of Salem’s Riddle Construction, said he’s had delays on several new construction projects because of hiccups with financing, not because of the outbreak. His company does residential construction and remodeling.
“But on the remodel side, that has pretty much shut down because people just don’t want us in their homes,” he said.
He said that the eight employees he typically has on hand are down to six, who have been working part-time because work has slowed.
But he said that he’s expecting pent-up demand will hit once “stay home” and other restrictions lift. He said that unlike the Great Recession, which involved complicated financial factors, the current economic slump is about resolving a medical problem.
“I think the real estate industry will take a hit, but everyone I talk to is like, ‘I can’t wait to get back to normal,’” he said.
Salem’s city public works projects are on track, including the new police station and seismic upgrades to the library, said city spokeswoman Kathy Ursprung. Work will also start on improvements to Riverfront Park.
Permitting services are still available online or by phone, said Ursprung.
Brian Nicholas, Marion County director of public works, said that the county is also moving forward with its public works projects, including several million dollars worth of repaving.
“All of those projects are moving ahead as scheduled,” he said. “COVID is not having any impact on our construction.”
The number of complaints filed with the Oregon Occupational Safety and Health Administration alleging companies of all types aren’t following social distancing measures rose to 1,083 for the week of March 30.
State records show that 56 complaints have been filed against construction companies for COVID-19 violations.
Oregon OSHA spokesman Aaron Covin said in an email that the agency hasn’t completed any investigations but expected them to ramp up significantly.
Drew Lindsey, the business manager for the International Brotherhood of Electrical Workers Local 280, said that contractors have been good about following social distancing requirements and allowing workers concerned about their health to take a furlough. He said that work has slowed and that there are fewer employees on job sites.
“Really the only jobs that are manned are bigger jobs,” he said. “And that’s a good thing because with bigger jobs we can keep people spread out.”
Contact reporter Jake Thomas at 503-575-1251 or [email protected] or @jakethomas2009.
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