Builders prepare to resume work in PA
SOUTH COVENTRY » One segment of Pennsylvania’s economy reopens on Friday, May 1, when the construction industry begins its journey back to a more normal level.
Pennsylvania Gov. Tom Wolf on April 20 announced that commercial and residential construction could resume in-person operations — initially on May 8 but then moved up a week to May 1.
Like many Pennsylvania businesses, construction was shuttered with the governor’s March 19 order that non-essential businesses close to help slow the spread of coronavirus.
“On Friday we have all our trades scheduled to be working. We have all the proper PPE for job superintendents and protocol distributed to our subcontractors on what needs to be done to adhere to CDC and government orders.” — Peter Rotelle, president and owner, Rotelle Studio e
“As we start to take steps to reopen the state, we recognize that the construction industry is vital to Pennsylvania’s economy and may operate safely with stringent guidance in place that will protect employees and the public,” Wolf said in an April 23 press release announcing plans to resume construction.
One of the companies ready to hit the ground running as construction projects resume is custom homebuilder and land development company Rotelle Studio -
e, located in South Coventry, Chester County. The developer had about 50 houses in various stages of construction when the order came to shut down operations.
In a recent telephone interview, Peter Rotelle, president and owner, said the restart is a “step in the right direction.”
“It’s great to have things starting up again. We’re looking forward to completing things that are half-finished,” he said, adding that meetings have been ongoing to make arrangements to get back on schedule as quickly as possible.
Prior to the pandemic, more than 266,000 Pennsylvanians were employed in construction, according to the U.S. Bureau of Labor Statistics. Those numbers have taken a hit, with more than 119,000 filing for unemployment in Pennsylvania between March 20 and April 18, according to figures from the Pennsylvania Department of Labor.
As construction resumes, it does so under the terms of guidance issued April 23 by the governor and the Pennsylvania Department of Health to mitigate the spread of COVID-19. According to information released by Gov. Wolf’s office, the guidance provides protocols for all construction activity, as well as specific additional guidance for residential, commercial and public construction projects.
It specifies that projects must maintain social distancing, provide hand washing and sanitizing stations for workers, as well as cleaning and sanitizing protocols for high risk transmission areas.
Businesses must also identify a “pandemic safety officer” for each project or work site. shopping around holidays.” He added that he was fortunate that it wasn’t necessary to furlough any of the company’s employees, who have continued to work remotely during the shutdown. “We had made decisions prior to anything coming out that we would keep everyone on the payroll and that we would revisit the issue every two weeks,” he said. “We were committed to keeping everyone onboard at least through June. There are lots of houses under construction and we will need everyone.” During the shutdown, Rotelle worked with the Bucks, Chester and Montgomery County Builder Associations and the PA Builders Association to advocate for his buyers to promote the continuation of residential building in Pennsylvania. The company has updated its customers on a weekly basis. Customers have understood the situation, recognizing the situation was “100 percent out of our control,” Rotelle said, but added that the delays have put some people in a tough spot — perhaps needing to stay in a hotel or temporary housing while they wait for their houses to be completed.
ECONOMIC UPS AND DOWNS
Rotelle said there have been several economic downturns and surges during the company’s 30year history. In fact, he said the housing market leading up to the pandemic was one of the better markets he had seen.
“It was just a very steady incline of increase and the inventory had kept everything in check. We felt we were on great ground from an economic standpoint and inventory,” he said.
Despite the positive trends, Rotelle said the company was prepared for a downturn, due to the fact the market had been improving for 10 years and the “cyclical” nature of the business. “When it happened we were in a fortunate position with our balance sheet and land inventory. But in a million years I had not expected what happened. Who would have thought something like this would happen,” he said. Rotelle said there have been sudden downturns in the market before, but with those downturns the company knew what to expect. “With coronavirus, it is something unprecedented — it is just a little more unsettling,” he said, adding he expects a “minor housing recession” as a result of the pandemic.
LOOKING AHEAD
Rotelle acknowledges the company has taken a hit during the shutdown — and is down about 12.5 percent.
“It’s a punch in the gut. It has been stressful but I am very optimistic and feel we are well positioned coming out of this. Thank goodness we were prepared,” he said.
A self-described “perpetual optimist,” Rotelle believes there will be opportunity coming out of the current situation.
“If what the president is saying and economists are predicting and there isn’t another resurgence of the virus — by year end there could be a healthy turn around,” he said.
Rotelle acknowledges that people have different levels of fear depending on how the pandemic has affected their livelihood — which impacts their view of the housing market. He points out, however, that for those who are in a position to do so, this is actually a good time to be buying a home. He said interest rates are low and there is land coming into the market.