The effect of Covid-19 pandemic on the global economy has been profound. Its impact on the construction and infrastructure sector and its allied industries has led to a critical situation wherein governments have been forced to devise strategies to fuel growth in the sector. The Pre-engineered building (PEB) industry is one of the key industry which works in tandem with the construction and infrastructure industry.

These construction types are basically used in industrial buildings and warehouses. The demand of pre engineered buildings is driven by growing construction, rising urban population and growing number of special economic zones in India (SEZ). However, factors such as fluctuations in raw material prices and shortage of skilled labour have been some major restraints that have hindered the market growth. The pandemic has added to its woes in a way, though it has also made PEB technology popular because it requires lesser manpower.

“Coronavirus has impacted the global economy including India with almost every sector feeling the effects of the current pandemic,” says  D Raju – Managing Director, Kirby Building Systems & Structures India Pvt Ltd, “Pre Engineered Steel Buildings (PEB) sector is a part of both manufacturing and construction industry segments as it involves both fabrications of steel and installation at site. The fabrication and construction of industrial projects started after 45 days of lockdown as per the government guidelines and the sector continue to feel the impact as the economy is still not in full gear though most of the services have resumed their operations, there is still no major activity happening except in very few sectors.”

The government in India is keen to ensure that the strength of government funded projects is able to reinvigorate the construction and infrastructure sector. In reviving the industry the PEB players will also get some impetus. This impetus will be emboldened by the fact that PEB requires lesser manpower since projects have to be executed using lesser manpower as also social distancing in mind.

As Alakesh Roy, Managing Director, Zamil Steel Buildings India Pvt Ltd puts it across rightly “Irrespective of Covid pandemic, people have always wanted to accelerate the process of construction. This is important especially for huge projects be it residential or infrastructure, more so because it directly affects the cost of the project. Unlike earlier, where a project dragged on for 5 to 10 years, people are keen on timely deliveries now. The PEB concept is to devoid of delays, we are executing a 5,000-7,000-metric ton single project in less than six months’ time. PEB technology will be the flavour of the season in upcoming years.”

However, just like every sector the PEB industry too will get reinvigorated provided the fundamentals of the construction and infrastructure sector it services, is reformed Alakesh Roy rightly concludes “There are certain fundamentals which need to get corrected for the infrastructure sector. These fundamentals are labour reforms, cost of doing business anywhere in India and power tariffs. When you move across the industry, the deterrent for such kinds of movements is whether production units and consumption units are differently located. This was happening due to tax being a major source of discrimination between states. Today with the logistics sector improving like the road and railway transport network, it will be more of a distribution kind of a scenario rather than a manufacturing kind of scenario.”