Reddy Kancharla – Current Challenges of the Construction Moving Into 2021

The biggest challenges the construction industry faces today are project delays, a shortage of qualified and skilled workers, and lesser access to construction materials and products. However, despite these problems, the industry does hold promise for 2021.

Reddy Kancharla is an esteemed and widely respected civil engineer from the USA. He has extensive knowledge of engineering theories, principles, and practical solutions for problems in the construction and civil engineering sectors.

He says that despite the above challenges, the construction promises you many bright opportunities in 2021. More contractors are confident the construction market will give you lucrative business opportunities in the following 12 months. Their hiring plans reflect the above belief that the industry is picking up post the COVID-19 Pandemic.

Assumptions for this year

There is an increasing number of contractors who believe their profit margins and overall company revenues increase this year. The following are the principal findings derived from the U.S Chamber of Commercial Index Report (quarterly index focused on the fourth quarter of 2020). It polled 207 contractors working in construction projects in the USA, both in the commercial and industrial sectors that also included the multi-family residential markets-

Here is the summary of the above index report

  • 26% of construction projects had to be kept on hold in October 2020
  • 27% of projects in the construction market are expected to get delayed during the first quarter of 2021
  • 71% of leaders in the construction industry struggled to meet the demands of the schedule in the last quarter of 2020- this increased from 58% from its previous quarter.

Fortunately, there is some good news. Industry experts expect the volume of projects delayed to decrease from 20% to 18% by the middle of 2021.

Shortage of skilled labor

The construction industry struggled to get adequate skilled labor.  A few contractors are reporting problems in secured skilled workers. Most contractors, around 87%, are still reporting moderate to high levels of problems when it comes to getting skilled workers, and 90% believe the issue will worsen in the following six months.

As a result of the above, around 58% of contractors are placing higher bids to boost their chances of getting sub-contractors for their ongoing projects.

Reasons to be positive for 2021

Despite the above problems, the following are good reasons to stay positive in 2021-

  1. Contractors have plans to hire more labor.
  2. Confidence in new business opportunities is increasing
  3. More contractors believe they will get higher revenue and profits


Reddy Kancharla agrees that the Pandemic did disrupt global economic growth in 2020; however, there is hope and good news despite these challenges in the construction industry. He recommends contractors should manage these issues one by one. Tackling them all together will be overwhelming, and one might become pessimistic.  Just consider a few of them to resolve to get a fresh start and gradually grow in 2021 with success.