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| Chinese Copper, Italian Marble: Coronavirus Shipping Delays Hurt Developers | Chinese Copper, Italian Marble: Coronavirus Shipping Delays Hurt Developers |
| (3 days later) | |
| When it comes to obtaining building materials, real estate developers often buy globally, not locally. But as the coronavirus spreads across the world, bringing countries to a standstill, the lack of access to overseas supplies is sending jitters through the construction industry. | When it comes to obtaining building materials, real estate developers often buy globally, not locally. But as the coronavirus spreads across the world, bringing countries to a standstill, the lack of access to overseas supplies is sending jitters through the construction industry. |
| Delayed so far at large-scale residential and commercial projects have been goods like marble, tile, paving stones, furniture, lighting equipment and elevators — and even models of buildings themselves, workers say. | Delayed so far at large-scale residential and commercial projects have been goods like marble, tile, paving stones, furniture, lighting equipment and elevators — and even models of buildings themselves, workers say. |
| Warning signs are appearing on multiple fronts. And the setbacks threaten jobs in an industry that employs millions of people. In many cases, no materials means no work, analysts say. | Warning signs are appearing on multiple fronts. And the setbacks threaten jobs in an industry that employs millions of people. In many cases, no materials means no work, analysts say. |
| “It’s not like when you build a house and can just go down to a Home Depot and get a different light fixture when you’re short,” said Chris Heger, a vice president of OAC Services, a Seattle firm that manages construction projects. “This stuff is all designed and planned years in advance.” | “It’s not like when you build a house and can just go down to a Home Depot and get a different light fixture when you’re short,” said Chris Heger, a vice president of OAC Services, a Seattle firm that manages construction projects. “This stuff is all designed and planned years in advance.” |
| Theater seats from Colombia, wooden doors from Italy and metal ceilings from Germany bound for a new corporate campus in Silicon Valley are likely to be delayed, which will slow down work, said Mr. Heger, who is overseeing the project. He declined to identify it. | Theater seats from Colombia, wooden doors from Italy and metal ceilings from Germany bound for a new corporate campus in Silicon Valley are likely to be delayed, which will slow down work, said Mr. Heger, who is overseeing the project. He declined to identify it. |
| “I’ve been doing this for 30 years,” Mr. Heger said of a period that included the slowdown after the Sept. 11 attacks and the recession of 2008. “And I’ve never seen anything like this.” | “I’ve been doing this for 30 years,” Mr. Heger said of a period that included the slowdown after the Sept. 11 attacks and the recession of 2008. “And I’ve never seen anything like this.” |
| Many of the components that make up a building come from China, even after Beijing and Washington got into a messy trade war. | Many of the components that make up a building come from China, even after Beijing and Washington got into a messy trade war. |
| At the Port of Los Angeles, imports from China, including construction materials, were down 23 percent in February from the same period last year, said Mark D. Fergus, a vice president of the consulting firm Cumming Corporation who is based Los Angeles and has managed condo, shopping center and hotel projects. | At the Port of Los Angeles, imports from China, including construction materials, were down 23 percent in February from the same period last year, said Mark D. Fergus, a vice president of the consulting firm Cumming Corporation who is based Los Angeles and has managed condo, shopping center and hotel projects. |
| China is also the center of the coronavirus outbreak, and products scheduled to ship from the country in recent weeks have been plagued by further delays. | China is also the center of the coronavirus outbreak, and products scheduled to ship from the country in recent weeks have been plagued by further delays. |
| Contractors have complained that shipments of Chinese copper have not arrived on time. Hotel furniture from the Philippines, a country that has quarantined much of its population, is also expected to be late, Mr. Fergus said. “And the situation is only going to be exacerbated as we lock down other countries,” he said. “We’re trying to identity the risk and find alternative sources.” | Contractors have complained that shipments of Chinese copper have not arrived on time. Hotel furniture from the Philippines, a country that has quarantined much of its population, is also expected to be late, Mr. Fergus said. “And the situation is only going to be exacerbated as we lock down other countries,” he said. “We’re trying to identity the risk and find alternative sources.” |
| Delays in materials have so far not forced widespread layoffs in the U.S. construction industry, which in February employed more than 7.6 million people, according to the Bureau of Labor Statistics. | Delays in materials have so far not forced widespread layoffs in the U.S. construction industry, which in February employed more than 7.6 million people, according to the Bureau of Labor Statistics. |
| As of Tuesday, just a handful of large private projects, like one involving a hospital expansion that may put patients at risk, have stopped work by their choosing, economists say. One reason for the low number of shutdowns may be that some materials from China had been stockpiled in advance to offset vacations taken in February by Chinese factory workers for Lunar New Year, they say. | As of Tuesday, just a handful of large private projects, like one involving a hospital expansion that may put patients at risk, have stopped work by their choosing, economists say. One reason for the low number of shutdowns may be that some materials from China had been stockpiled in advance to offset vacations taken in February by Chinese factory workers for Lunar New Year, they say. |
| When work shutdowns have occurred, it’s because government officials ordered them. On Monday, Boston closed all construction sites, affecting tens of thousands of workers. Mayor Martin J. Walsh urged managers to not fire employees but just lay them off temporarily. | When work shutdowns have occurred, it’s because government officials ordered them. On Monday, Boston closed all construction sites, affecting tens of thousands of workers. Mayor Martin J. Walsh urged managers to not fire employees but just lay them off temporarily. |
| For similar reasons, the six counties that make up the Bay Area of San Francisco on Monday ordered a halt to all construction projects except those involving housing. | For similar reasons, the six counties that make up the Bay Area of San Francisco on Monday ordered a halt to all construction projects except those involving housing. |
| On a smaller scale, several upscale apartment buildings have stopped apartment renovation projects, including the Ritz Tower co-op in Midtown Manhattan. | On a smaller scale, several upscale apartment buildings have stopped apartment renovation projects, including the Ritz Tower co-op in Midtown Manhattan. |
| “It’s still mostly business as usual,” said Ken Simonson, the chief economist with the Associated General Contractors of America, a Virginia-based trade group. “But the anticipation is that there will major supply-chain problems of a variety of types.” | “It’s still mostly business as usual,” said Ken Simonson, the chief economist with the Associated General Contractors of America, a Virginia-based trade group. “But the anticipation is that there will major supply-chain problems of a variety of types.” |
| Projects now on the drawing board may be in trouble. This week, a planned 300-unit rental project in downtown Los Angeles fell apart after negotiations broke down between the project’s developer and the would-be lender, said Mr. Fergus, who is advising the developer. | Projects now on the drawing board may be in trouble. This week, a planned 300-unit rental project in downtown Los Angeles fell apart after negotiations broke down between the project’s developer and the would-be lender, said Mr. Fergus, who is advising the developer. |
| “The events of the past couple weeks have made lenders extremely conservative,” he said, echoing assessments from developers. | “The events of the past couple weeks have made lenders extremely conservative,” he said, echoing assessments from developers. |
| At the same time, lenders have begun demanding details about the timing of shipments of material from Italy and China, two hard-hit countries, said Frank J. Sciame Jr., the chairman of Sciame Construction, a builder in New York. | At the same time, lenders have begun demanding details about the timing of shipments of material from Italy and China, two hard-hit countries, said Frank J. Sciame Jr., the chairman of Sciame Construction, a builder in New York. |
| “Lenders want to make sure they’re not going to be stuck with a half-completed project,” Mr. Sciame said. Even the smallest components are being affected. Controllers for LEDs, which used to take two months to arrive from China, are now be expected to take at least six, he said. | “Lenders want to make sure they’re not going to be stuck with a half-completed project,” Mr. Sciame said. Even the smallest components are being affected. Controllers for LEDs, which used to take two months to arrive from China, are now be expected to take at least six, he said. |
| Maintaining quality during production, which often includes producing finishing touches for prominent developments, has also become difficult, Mr. Sciame said. | Maintaining quality during production, which often includes producing finishing touches for prominent developments, has also become difficult, Mr. Sciame said. |
| He was supposed to fly to Manchester, England, this week to inspect a mock-up version of a stage door planned for a new theater that his company is constructing in Manhattan. But the Trump administration banned flights to Britain from the United States. | He was supposed to fly to Manchester, England, this week to inspect a mock-up version of a stage door planned for a new theater that his company is constructing in Manhattan. But the Trump administration banned flights to Britain from the United States. |
| Videoconferencing may be a substitute in some situations, “but there is nothing like having boots on the ground,” Mr. Sciame said. “The disruption in travel will be impactful.” | Videoconferencing may be a substitute in some situations, “but there is nothing like having boots on the ground,” Mr. Sciame said. “The disruption in travel will be impactful.” |
| In the same vein, the travel bans have affected stoneworkers who regularly travel to quarries in other countries to handpick materials for kitchen counters, like PMI International Stone Importers, a New Jersey-based firm whose product graces department stores, office buildings and condos. | In the same vein, the travel bans have affected stoneworkers who regularly travel to quarries in other countries to handpick materials for kitchen counters, like PMI International Stone Importers, a New Jersey-based firm whose product graces department stores, office buildings and condos. |
| The company’s planned trip in early March to northern Italy to select white marble — one of six such trips a year — was scrapped in the wake of Italy’s national quarantine, said Kevin Gavaghan, a PMI sales manager. | The company’s planned trip in early March to northern Italy to select white marble — one of six such trips a year — was scrapped in the wake of Italy’s national quarantine, said Kevin Gavaghan, a PMI sales manager. |
| Updated June 5, 2020 | |
| The unemployment rate fell to 13.3 percent in May, the Labor Department said on June 5, an unexpected improvement in the nation’s job market as hiring rebounded faster than economists expected. Economists had forecast the unemployment rate to increase to as much as 20 percent, after it hit 14.7 percent in April, which was the highest since the government began keeping official statistics after World War II. But the unemployment rate dipped instead, with employers adding 2.5 million jobs, after more than 20 million jobs were lost in April. | |
| Mass protests against police brutality that have brought thousands of people onto the streets in cities across America are raising the specter of new coronavirus outbreaks, prompting political leaders, physicians and public health experts to warn that the crowds could cause a surge in cases. While many political leaders affirmed the right of protesters to express themselves, they urged the demonstrators to wear face masks and maintain social distancing, both to protect themselves and to prevent further community spread of the virus. Some infectious disease experts were reassured by the fact that the protests were held outdoors, saying the open air settings could mitigate the risk of transmission. | Mass protests against police brutality that have brought thousands of people onto the streets in cities across America are raising the specter of new coronavirus outbreaks, prompting political leaders, physicians and public health experts to warn that the crowds could cause a surge in cases. While many political leaders affirmed the right of protesters to express themselves, they urged the demonstrators to wear face masks and maintain social distancing, both to protect themselves and to prevent further community spread of the virus. Some infectious disease experts were reassured by the fact that the protests were held outdoors, saying the open air settings could mitigate the risk of transmission. |
| Exercise researchers and physicians have some blunt advice for those of us aiming to return to regular exercise now: Start slowly and then rev up your workouts, also slowly. American adults tended to be about 12 percent less active after the stay-at-home mandates began in March than they were in January. But there are steps you can take to ease your way back into regular exercise safely. First, “start at no more than 50 percent of the exercise you were doing before Covid,” says Dr. Monica Rho, the chief of musculoskeletal medicine at the Shirley Ryan AbilityLab in Chicago. Thread in some preparatory squats, too, she advises. “When you haven’t been exercising, you lose muscle mass.” Expect some muscle twinges after these preliminary, post-lockdown sessions, especially a day or two later. But sudden or increasing pain during exercise is a clarion call to stop and return home. | Exercise researchers and physicians have some blunt advice for those of us aiming to return to regular exercise now: Start slowly and then rev up your workouts, also slowly. American adults tended to be about 12 percent less active after the stay-at-home mandates began in March than they were in January. But there are steps you can take to ease your way back into regular exercise safely. First, “start at no more than 50 percent of the exercise you were doing before Covid,” says Dr. Monica Rho, the chief of musculoskeletal medicine at the Shirley Ryan AbilityLab in Chicago. Thread in some preparatory squats, too, she advises. “When you haven’t been exercising, you lose muscle mass.” Expect some muscle twinges after these preliminary, post-lockdown sessions, especially a day or two later. But sudden or increasing pain during exercise is a clarion call to stop and return home. |
| States are reopening bit by bit. This means that more public spaces are available for use and more and more businesses are being allowed to open again. The federal government is largely leaving the decision up to states, and some state leaders are leaving the decision up to local authorities. Even if you aren’t being told to stay at home, it’s still a good idea to limit trips outside and your interaction with other people. | States are reopening bit by bit. This means that more public spaces are available for use and more and more businesses are being allowed to open again. The federal government is largely leaving the decision up to states, and some state leaders are leaving the decision up to local authorities. Even if you aren’t being told to stay at home, it’s still a good idea to limit trips outside and your interaction with other people. |
| Touching contaminated objects and then infecting ourselves with the germs is not typically how the virus spreads. But it can happen. A number of studies of flu, rhinovirus, coronavirus and other microbes have shown that respiratory illnesses, including the new coronavirus, can spread by touching contaminated surfaces, particularly in places like day care centers, offices and hospitals. But a long chain of events has to happen for the disease to spread that way. The best way to protect yourself from coronavirus — whether it’s surface transmission or close human contact — is still social distancing, washing your hands, not touching your face and wearing masks. | Touching contaminated objects and then infecting ourselves with the germs is not typically how the virus spreads. But it can happen. A number of studies of flu, rhinovirus, coronavirus and other microbes have shown that respiratory illnesses, including the new coronavirus, can spread by touching contaminated surfaces, particularly in places like day care centers, offices and hospitals. But a long chain of events has to happen for the disease to spread that way. The best way to protect yourself from coronavirus — whether it’s surface transmission or close human contact — is still social distancing, washing your hands, not touching your face and wearing masks. |
| Common symptoms include fever, a dry cough, fatigue and difficulty breathing or shortness of breath. Some of these symptoms overlap with those of the flu, making detection difficult, but runny noses and stuffy sinuses are less common. The C.D.C. has also added chills, muscle pain, sore throat, headache and a new loss of the sense of taste or smell as symptoms to look out for. Most people fall ill five to seven days after exposure, but symptoms may appear in as few as two days or as many as 14 days. | Common symptoms include fever, a dry cough, fatigue and difficulty breathing or shortness of breath. Some of these symptoms overlap with those of the flu, making detection difficult, but runny noses and stuffy sinuses are less common. The C.D.C. has also added chills, muscle pain, sore throat, headache and a new loss of the sense of taste or smell as symptoms to look out for. Most people fall ill five to seven days after exposure, but symptoms may appear in as few as two days or as many as 14 days. |
| If air travel is unavoidable, there are some steps you can take to protect yourself. Most important: Wash your hands often, and stop touching your face. If possible, choose a window seat. A study from Emory University found that during flu season, the safest place to sit on a plane is by a window, as people sitting in window seats had less contact with potentially sick people. Disinfect hard surfaces. When you get to your seat and your hands are clean, use disinfecting wipes to clean the hard surfaces at your seat like the head and arm rest, the seatbelt buckle, the remote, screen, seat back pocket and the tray table. If the seat is hard and nonporous or leather or pleather, you can wipe that down, too. (Using wipes on upholstered seats could lead to a wet seat and spreading of germs rather than killing them.) | If air travel is unavoidable, there are some steps you can take to protect yourself. Most important: Wash your hands often, and stop touching your face. If possible, choose a window seat. A study from Emory University found that during flu season, the safest place to sit on a plane is by a window, as people sitting in window seats had less contact with potentially sick people. Disinfect hard surfaces. When you get to your seat and your hands are clean, use disinfecting wipes to clean the hard surfaces at your seat like the head and arm rest, the seatbelt buckle, the remote, screen, seat back pocket and the tray table. If the seat is hard and nonporous or leather or pleather, you can wipe that down, too. (Using wipes on upholstered seats could lead to a wet seat and spreading of germs rather than killing them.) |
| Taking one’s temperature to look for signs of fever is not as easy as it sounds, as “normal” temperature numbers can vary, but generally, keep an eye out for a temperature of 100.5 degrees Fahrenheit or higher. If you don’t have a thermometer (they can be pricey these days), there are other ways to figure out if you have a fever, or are at risk of Covid-19 complications. | Taking one’s temperature to look for signs of fever is not as easy as it sounds, as “normal” temperature numbers can vary, but generally, keep an eye out for a temperature of 100.5 degrees Fahrenheit or higher. If you don’t have a thermometer (they can be pricey these days), there are other ways to figure out if you have a fever, or are at risk of Covid-19 complications. |
| The C.D.C. has recommended that all Americans wear cloth masks if they go out in public. This is a shift in federal guidance reflecting new concerns that the coronavirus is being spread by infected people who have no symptoms. Until now, the C.D.C., like the W.H.O., has advised that ordinary people don’t need to wear masks unless they are sick and coughing. Part of the reason was to preserve medical-grade masks for health care workers who desperately need them at a time when they are in continuously short supply. Masks don’t replace hand washing and social distancing. | The C.D.C. has recommended that all Americans wear cloth masks if they go out in public. This is a shift in federal guidance reflecting new concerns that the coronavirus is being spread by infected people who have no symptoms. Until now, the C.D.C., like the W.H.O., has advised that ordinary people don’t need to wear masks unless they are sick and coughing. Part of the reason was to preserve medical-grade masks for health care workers who desperately need them at a time when they are in continuously short supply. Masks don’t replace hand washing and social distancing. |
| If you’ve been exposed to the coronavirus or think you have, and have a fever or symptoms like a cough or difficulty breathing, call a doctor. They should give you advice on whether you should be tested, how to get tested, and how to seek medical treatment without potentially infecting or exposing others. | If you’ve been exposed to the coronavirus or think you have, and have a fever or symptoms like a cough or difficulty breathing, call a doctor. They should give you advice on whether you should be tested, how to get tested, and how to seek medical treatment without potentially infecting or exposing others. |
| If you’re sick and you think you’ve been exposed to the new coronavirus, the C.D.C. recommends that you call your healthcare provider and explain your symptoms and fears. They will decide if you need to be tested. Keep in mind that there’s a chance — because of a lack of testing kits or because you’re asymptomatic, for instance — you won’t be able to get tested. | If you’re sick and you think you’ve been exposed to the new coronavirus, the C.D.C. recommends that you call your healthcare provider and explain your symptoms and fears. They will decide if you need to be tested. Keep in mind that there’s a chance — because of a lack of testing kits or because you’re asymptomatic, for instance — you won’t be able to get tested. |
| Because PMI will not commit to the expensive stone until it can be seen in person, orders are not likely to be placed until June, Mr. Gavaghan said. “Some projects are going to be stalled because of this,” he said. “There’s no question about it.” | Because PMI will not commit to the expensive stone until it can be seen in person, orders are not likely to be placed until June, Mr. Gavaghan said. “Some projects are going to be stalled because of this,” he said. “There’s no question about it.” |
| Not everything comes from abroad: Rebar, concrete and lumber often come from American suppliers. | Not everything comes from abroad: Rebar, concrete and lumber often come from American suppliers. |
| But domestic sources for other materials, like ceramic tiles, may not be so easy to line up overnight, said Joseph Lundgren, a Dallas-based consultant to the tile industry. | But domestic sources for other materials, like ceramic tiles, may not be so easy to line up overnight, said Joseph Lundgren, a Dallas-based consultant to the tile industry. |
| Today, 70 percent of the ceramic tiles available in the United States come from elsewhere, Mr. Lundgren said, with Brazil, Turkey and Spain leading the way. The 11 American factories that do make tiles cannot meet the increased demand. | Today, 70 percent of the ceramic tiles available in the United States come from elsewhere, Mr. Lundgren said, with Brazil, Turkey and Spain leading the way. The 11 American factories that do make tiles cannot meet the increased demand. |
| With three months of tile inventory on hand, shortages will probably not result anytime soon, he said. But he wondered if there would be dockworkers to greet tile-carrying ships in the coming months if the U.S. infrastructure shuts down. | With three months of tile inventory on hand, shortages will probably not result anytime soon, he said. But he wondered if there would be dockworkers to greet tile-carrying ships in the coming months if the U.S. infrastructure shuts down. |
| Price, of course, dictates where developers shop, and because foreign markets often have lower-cost items, they have become a go-to source. | Price, of course, dictates where developers shop, and because foreign markets often have lower-cost items, they have become a go-to source. |
| But with the coronavirus crisis, longtime calculations might have to be rethought, said Jeffrey E. Levine, the chairman of Douglaston Development, a New York-based housing developer. | But with the coronavirus crisis, longtime calculations might have to be rethought, said Jeffrey E. Levine, the chairman of Douglaston Development, a New York-based housing developer. |
| Paying a bit more for domestic materials whose delivery is less at risk in future crises might be a smarter bet, he said. And the shift in strategy is playing out in real time. | Paying a bit more for domestic materials whose delivery is less at risk in future crises might be a smarter bet, he said. And the shift in strategy is playing out in real time. |
| For a 931-unit apartment tower that Douglaston is building in the Hudson Yards neighborhood of Manhattan, for instance, Mr. Levine will probably no longer install Italian cabinets, favoring a New Jersey manufacturer instead. | For a 931-unit apartment tower that Douglaston is building in the Hudson Yards neighborhood of Manhattan, for instance, Mr. Levine will probably no longer install Italian cabinets, favoring a New Jersey manufacturer instead. |
| But in an indication of how difficult a buy-American approach may be, that New Jersey company, as it turns out, gets its raw materials from China. “It’s forcing us to dive into the supply chain,” Mr. Levine said. | But in an indication of how difficult a buy-American approach may be, that New Jersey company, as it turns out, gets its raw materials from China. “It’s forcing us to dive into the supply chain,” Mr. Levine said. |