b'Business Managementuse dropped off drastically in the spring of 2020 and its notcertainifvisitsforelectivesurgeryandothernon-essential procedures will come back, Simonson said. Or willweseegrowthofalternativemedicalcarethrough urgentcareorsurgerycenters?"Healsoquestionedif nursinghomeconstructionwouldfallbecausepeople mightbemorehesitanttocheckthemselvesorfamily members into the facilities.Travelandhospitalitysectors,alongwithsportsorperformancevenues,alsolookgrimaccordingto Simonson.That\'s primarily because their revenue sourcessales taxes, convention income and tollsare taking acaused issues, he said. bighitandarentexpectedtogetreplenishedanytime soon as the pandemic continues in 2021. Diminishedstateandlocalgovernmentrevenues Basu said this is one of the top challenges facing contractors Price increases Throughout 2020 saw fluctuations in the rig ht now. A report from the Brookings Institution projects prices of constructionmaterials,mostrecently withthethatstateandlocalgovernmentrevenueswilldecline skyrocketingcost oflumber.Priceshavebeenrisingon$155 billion in 2020, $167 billion in 2021 and $145 billion mostmaterialssincelastMay,accordingtoABC.Itsin 202 2about5.5%,5.7%and4.7%,respectively September2020lookatpricesfoundthatamong11exclud ingthedeclinesinfeestohospitalsandhigher subcategories,eightexperiencedmonthlyincreases.Aseducation.constructioncomesbackonlinearoundtheworld,increasing demand for products could keep prices on theThismeansthatstateagenciessuchasdepartmentsof rise,Basusaid."Despitethelingeringpandemic,the transportationhavelessmoneytofundinfrastructureglobal economy has been recovering, increasing demandinitiativeslikeroads,bridgesandtransitprojects.Many forkeycommodities,"hesaid."Rapidviralspread, willlooktothefederalgovernmentforadditional includinginEuropeandparts ofNorthAmerica,renderrevenue. materials shortages more likely to continue through the wintermonths."SomecontractorsaretakingproactiveAt the New York Metropolitan Transportation Authority, steps to expand their supplier network as well as buyingsomeupcomingprojectsareinlimboastheauthority hedges on some materials to protect from upward priceawaits word on whether it will receive federal funding in swings, according to Joe Natarelli, leader of the national ad diti on to the $3.8 billion it received in April 2020 under construction industry practice at accounting firm Marcum.theCoronavirusAid,ReliefandEconomicSecurityAct.IndustryestimatesshowthatevenwiththeCAREAct Supply chain issues "Production is getting back to where itfunds, the MTA faces at least an $8.5 billion shortfall for wasinternationally,Pomfrettsaid,butthestrainon 2020and2021.MTAsfinancialpositionhaserodedsupplychainsandhowtogetmaterialsandequipmentdramaticallysincetheoutbreakbegan,JannoLieber, delivered remains." Natarelli said his clients are buildingMTA chief development officer said last summer, noting resiliencyintotheirsupplychainssothattheyrenotthat the authority is losing about $800 million a month in beholden to a single supplier for any one material. Therevenue due to the crisis. days of having one material supplier are gone, he said. Were seeing clients setting up three separate suppliers,Hutchins. ShelleyD. Hutchins, LEEDAP, writes about residential construction and design, sustainable building and living, and travel and in different geographic locations, where in the past theyhealth-care issues. Construction Dive provides in-depth journalism and may have had just one or two. Some are even getting asinsightintothemostimpactfulnewsandtrendsshapingtheconstruction and building industry. many as five in place.Plus, the pandemic caused a decline in shipping as well as air travel, which means less air freight gets moved so even the reduction in moving materials across state lines has Page 7CONSTRUCTION JOURNAL'