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Shutting Down Construction Projects Would Devastate Maryland’s Economy

Shutting Down Construction Projects Would Devastate Maryland’s Economy

The president of Md. Washington Minority Companies Association, Wayne R. Frazier, Sr. issued the following statement in reaction to steps being taken to put in place arbitrary halts to construction activity in Maryland.


As Governor Larry Hogan ponders halting construction activity in the free state due to the coronavirus outbreak, the entire industry waits in fear of total chaos, should he call for a shutdown.


Construction projects rely on critical path scheduling, design, material suppliers, budgets, building trades, financing, and surety bonding to name a few very important components of a successful project. In addition, the safety and care of its labor force is second to none, which assures that everyone returns home safe after every shift.


American, specifically Maryland, based firms preach and practice safety measures daily with the utilization of illuminated clothing, hard hats, safety eyewear, protective boots and gloves. With these precautions already in place, and perhaps adding breathing mask, workers in the construction industry are safer from everyday hazards than any other industry.


In terms of economic chaos, in many cases shutting down projects, would put many large and small firms at a base of insolvency due to cashflow being severely interrupted. Small and minority-owned firms, who always have to finance projects for the larger prime or owner, would be severely harmed because all their cash is invested in projects and payments will cease. Plus, most small firms utilize their bank lines of credit or contract accounts receivable financing to start and keep projects moving. An interruption like the halting of construction projects would devastate an already financially tenuous, yet economically contributing, concern.


At Md. Washington Minority Companies Association (MWMCA), we are pleading and begging Governor Hogan to consider the present safety standards in place and not devastate the construction industry with a total halt of work. There would not be enough stimulus, SBA or state loan guaranty, for yet another debt that would have to be repaid to go around. Please keep our construction industry going!

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