b'PRESIDENTS MESSAGECONSTRUCTIONSECTOR TRENDSEXPECTED TO ACCELERATEC OVID-19 has already producedcompanies notwithstanding that they allapparent how best to make COVID-related more fatalities in the U.S. than fourmake their living ostensibly the delay claims winnable. Stay tuned on that wars, including World Wars I andsame way.front. During our upcoming Members II and the combined victims of theDay, TCA will be hosting an industry forum Korean and Vietnamese wars. The impactsA crisis like this will also have residualwith a claims consultant and three of in Canada and around the world are, foreffects and not just because of thethe industrys great legal minds on that all practical purposes, equally devastating.legacy impact of the pandemic itself. Isubject specifically.Add to that government spending in theam talking about pre-pandemic trends 35 per cent of GDP range and debt tolike the technology revolution, amongPreparing for an era of rapid change GDP ratios well north of 50 per cent, andother things, which will evolve moreis the challenge I would most fear as you have both a global health crisis and arapidly in the wake of a crisis. As ana construction industry employer. That global financial crisis. That you industry, we have always been resilient,is because none of us has a crystal already knew. and that makes an enormous difference.ball. Geoff Smith, the renowned CEO of That said, productivity losses are notEllisDon, joked during his introductory What you may not know is that crisiseasily overcome and the language in ourremarks for the 2020 Construct Canada accelerates trends. As a result, existingcontracts particularly around who bearsconference that even bank presidents pre-pandemic trends will for thewhat risk does not help. Supply chaincan only speculate about what is to foreseeable future be intensified. Putdisruption is another zinger since thecome. What we do know is that our simply, this accelerated pace of changeaccountability for delays and the costsindustry will play a vital role in the post-will unlock a tidal wave on slow-to-evolvethat arise because of delays are typicallypandemic recovery of our communities sectors like construction that will seeour cross to bear. That would not be soand economies and that the companies the profitability gap widen between topbad if we could invoice premiums to seethat get out in front of the plethora performers and everybody else. Thatmaterial deliveries expedited, but thatof now-accelerated challenges that sounds ominous perhaps, but historydoes not happen in lump sum existed pre-COVID will prosper. Sounds bears this out and the widening gap iscontracts. Ever. like a good time from where I sit to already real. work collaboratively and discover best This pandemic we keep talking about ispractices together for the greater good of Case-in-point: many contractors saw theiruncharted territory. And despite playingall of us. And that is why I do what I do. retained earnings erode in 2020 whena critical role delivering much-neededYou too can make a difference and all you disruption caused revenues to diminish,COVID-related services during thehave to do is get involved.and productivity losses increased costs.lockdown, our industry has suffered. Bear in mind that last years retainedWhat matters now is our near-termFor more information on how to get earnings are this years working capital.solvency and our preparedness for theinvolved, give us a call. We answer every Sound familiar? The result is lower profitschanges that are coming sooner call and we do it promptly.or, in the worst-case scenario, insolvency.than expected.Others among us were protected underRespectfully,the essential services exemptions andIn terms of protecting our solvency in saw relatively little cash flow disruptionthe final months of the pandemic, our and, in the best-case scenario, were ableindustry needs all the help it can get to recover costs arising because of COVID.resolving, in particular, the delay claims The resultgiant fissures separatingwe keep kicking down the road in theJohn Mollenhauer near-term profitability for constructionhopes that it will one day soon becomeTCA President & CEO6Quarter 1 2021 BUILDERSDIGEST'