Impact of COVID-19 on the Global Sandwich Panel Market
The COVID-19 pandemic is having a substantial negative impact on the construction industry, although the legal repercussions differ from region to region and contract to contract. On the contractual side, there is more focus on the international consulting firms, which provide guidelines and standards such as FIDIC (International Federation of Consulting Engineers) and NEC. The current stage of the pandemic has made construction projects difficult to complete. The impact of the COVID-19 outbreak is slowing down the growth of the construction industry, causing disruption and delay, which can be attributed to several disrupted supply chains. A few governments have also instructed the shutdown of certain businesses across regions. Most residential and non-residential construction projects have been ordered to be shut down. The sandwich panel manufacturers and the overall construction industry are expected to face several challenges as most of the housing projects are expected to be left incomplete due to supply chain disruptions, cash flow constraints, and production shutdown. The almost zero construction activity at project sites has further put a strain on several manufacturers' and developers’ financial situation. Although the demand for affordable sandwich panels in single-family and multifamily housing increased in the last few years, the COVID-19 pandemic has created a major setback for the sandwich panel market. Amid the COVID-19 outbreak, laborers have migrated back to their respective native lands. Thus, due to a shortage of labor, the timely completion of projects has also become a major challenge for sandwich panel manufacturers. Additionally, due to supply chain disruption and contractual implications, many manufacturers are also facing problems in acquiring cheap input material as the manufacturing units are closed.
Apart from the factors mentioned above, consumer purchasing behavior is also expected to impact the overall sandwich panel market, as consumers are not willing to invest in housing projects owing to limited per capita incomes and fears of unemployment. Thus, sandwich panel buyers are expected to delay their purchasing decisions for as long as possible, which leads to a pile-up of unsold stocks. Therefore, looking at the current scenario, sandwich panels are not expected to remain affordable for the stakeholders.