Page 80 - September 2020

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immediate negative impact, but one has to think debt will be best placed to adapt in times of crisis.
from a business perspective how we can take
advantage of this. How can we reposition our The need to adapt
company, ourselves and strategies to play to our COVID-19 is simply accelerating the impact of
strengths and address what will become the new the issues in our industry and we need to find
normal? solutions. Whether these solutions now require
investment in technology such as 3D printing,
We realize that 2020 is hugely impacted by more efficient ways of thinking, different ways of
COVID-19 and all of our pre-COVID plans for the procuring or the sourcing of cheaper and more
year have now been largely shattered. We will environmentally friendly materials, the underlying
emerge from this global pandemic as a different issues challenging the industry have not changed.
player. Some people will fall, some people will The pandemic has not changed our world – it has
evolve. As Charles Darwin noted: “It is not the simply expedited the need to find solutions to
strongest of the species that survives, nor the pre-existing challenges.
most intelligent that survives. It is the one that is Companies that can find solutions to the
most adaptable to change.” Change is not a new challenges quickly are going to emerge as winners
normal. Change is an inevitable part of life. We out of the COVID-19 situation and we are focused
all regularly face different kinds of crises and the on this outcome. We are trying to adapt, evolve,
mindset of the individual, and the mindset of an streamline, cut costs, collaborate more with our
organization, should be adaptable and flexible clients. We are trying to work with our clients as an
enough to accommodate change. If we are able integrated part of the delivery process to lower the
to accommodate change, we will be able to adapt cost of the end product. We are trying to increase
to the impact of COVID-19 and stay resilient. If we our use of technology and reduce reliance
look at the stock market and global economies on manual work in the construction process,
right now, we see how technology companies and automating where possible so that we have a
progressive businesses with strong leadership factory line rather than unique prototypes with
are actually doing very well because they have a their own learning cycles which we cannot benefit
culture of embracing and even creating change. from on the next project. We are embracing the
On the other hand, traditional businesses in concept of modular construction, being more
declining industries are suffering. flexible in the way we work to allow creativity in the
workforce and our internal supply chain. Outdated
If we consider the construction industry, COVID-19 construction practices, working methods, working
is simply accelerating problems and issues that hours, dress codes – all of these are now being
the industry was already facing. The industry, questioned. Everyone in our business should be
whether in the local market or globally, was already encouraged to approach things differently and
dealing with low margins, uncomfortable health embrace change. The end results are what is
and safety standards, poor procurement and important.
contractual arrangements between stakeholders,
very high risk, and, most importantly, affordability Reasons for optimism
issues. The affordability of our product is an It is clear that 2020 will be difficult year for business
issue. Globally, there is a huge gap between what but I am very optimistic for 2021 and beyond. 2020
most people can afford to pay for the product of will be a year of repositioning and challenging
construction (whether it is a house, apartment, financial reporting. However, our industry can use
office or any other development) and the actual the crisis to address its issues, become more agile,
cost to buy. The cost of our product as an industry financially efficient and in tune with the changing
is increasing but the income of most people in the needs of the product we deliver to our customers.
world is not rising at the same pace.
We are fortunate that our business is not highly
Companies with high leverage will find it even more leveraged and has an agile and dedicated team
difficult to cope with these challenges because of which is willing to think outside of the box. We
the increased pressures it brings. Even where are focused on adapting to the new normal and I
a company is generally in good health, debt can am actually very optimistic about the remainder of
cause suffocation. Businesses with low levels of 2020 and beyond.

Contractors News Magazine 9