SAN FRANCISCO—The first half of the year brought a torrent of unexpected challenges for the construction industry, particularly in private nonresidential construction. On a national level, nonresidential building starts fell 19% through the first five months of the year, according to Dodge Data and Analytics.

In some markets where construction shutdowns were ordered, work levels fell as much as 80% during the shutdown period. The most disruptive issues included construction shutdown orders, new procedures to enable physical distancing on jobsites, and delays of materials, fixtures and equipment, according to JLL's H2 2020 Construction Outlook.

The federal government's Paycheck Protection Program (PPP) loans were a necessary source of relief, with Small Business Administration data showing that more than $63 billion was provided to construction firms through June 12. Although critical for the survival of many small and midsized construction businesses, the PPP loans also illustrate how hard the industry was hit by the pandemic, as construction ranked third out of all industries in terms of highest total loan value provided.