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Global Concrete and Cement Market Trends and Opportunities

By Edel Ayres - 2013-10-03 18:01:34  

It is expected that there will be a surge in residential and commercial construction in China due to the rising populations and disposable income.

The global concrete and cement market recorded a CAGR of 4.05% between 2008 and 2012 however, growth was subdues by an 11.8% decline in 2009. Construction activity slowed and, consequently, the demand for concrete and cement slowed in 2009. The global concrete and cement market is expected to record a CAGR of 8.49% over the next 5 years, in anticipation of a growing global construction industry, infrastructure development undertaken in emerging economies, and the easing of the economic crisis in Europe.

Asia-Pacific Regional Market
The Asia-pacific concrete and cement market valued US$261.1 billion in 2012, recording a CAGR of 14.78% between 2008 and 2012, outperforming all other regional markets. Chine constituted the largest share of the regional market, with a 71.4% share in 2012, followed by India and Japan, which constituted shares of 10.3% and 6.9% respectively. Large-scale investments in construction will drive the demand for concrete and cement. China is in need of housing and better infrastructure networks to cope with rapid urbanization; nearly 10 million workers migrate from rural areas to urban centers annually. In India, investments will be made in public-private projects to construct highways, railways and ports. The world’s second-most populous country is also expected to record a surge in residential and commercial construction, with rising population and disposable income. Japan is expected to invest heavily in the re-development of infrastructure, following the floods of 2011. The Indonesian construction industry is also expected to record substantial investments, supported by urbanization, income growth and government efforts to improve infrastructure, as part of its mission to take the country’s economy into the global top-10 by 2025. All this will drive the demand for concrete and cement in the region. Overall, the concrete and cement market in the Asia-Pacific region is expected to record a CAGR of 10.37% over the next five years.

Chinese construction trends
In 2013 alone, 4.7 million housing units will be completed, and the construction of 6.3 million affordable housing units will begin. Infrastructure construction is expected to record strong growth, with the Ministry of Transport earmarking CNY6.2 trillion (US$954 billion) for the construction of roads, railways, waterways, aviation and logistics.
Chinese cement production capacity increased rapidly from 595.0 million tons per year, at the end of 2000, to 2.2 billion tons per year in 2012. The Chinese 11th five year plan (2006-2010) included measures for the overhaul of the cement industry. With an investment nearing US$10.0 billion, approximately 696 dry process cement lines were put into operation from 2006 to 2010.

Economic slowdown in developing Asia, slow recovery in the US and uncertainty in Europe is expected to moderate short-term growth
The demand for concrete and cement is a derived one, mainly based on investments in the real estate business, industrial activities and infrastructure construction. Cement consumption trends follow the same path as other widely traded economies and have a close correlation with economic expansion. It is natural that emerging economies, as they urbanize and industrialize, now consume 90% of the world’s cement output. In richer, more mature markets, construction activity has remained relatively subdued, especially since the financial crisis of 2008-2009, and the demand for concrete and cement products has been in long-term decline. While the Asia-Pacific region accounts for the bulk of the expansion of the global construction industry since the financial crisis, a deceleration in Asian economies such as China and India, has moderated the growth of the concrete and cement market.

 

 

 


The Construction Industry in Western Europe - What you should know

By Edel Ayres - 2013-10-04 11:17:21  

The residential construction market across the region is among the worst affected, and has contributed substantially to the bleak financial situation facing countries such as Spain, Ireland and Greece. Construction in Western Europe – Key Trends and Opportunities to 2017 looks at how economic activity in the region has impacted on the construction industry.

Reflecting ongoing weakness in the region, real GDP has yet to rise above the pre-2008 level, with ongoing debt problems in most countries constraining growth, particularly in Greece, Ireland, Spain and Portugal. Budget deficits and government debt in several countries in the region are at alarming levels owing to the sluggish recovery from the economic crisis, which has led to record high unemployment levels. Public and private investment for new projects has declined significantly in the recent past. The construction industry in Western Europe recorded a CAGR of -5.94% between 2008 and 2012, mirroring the subdued economic environment in the region.

With high unemployment levels, households have cut down sharply on discretionary spending, resulting in a considerable fall in retail sales. To improve the situation, several governments issued debt and implemented stimulus packages in 2009 to boost the economy. However, amid the prolonged recovery, government debts have mounted, with the level rising to over 70% of GDP in several countries. Despite the generally subdued economic environment, prime retail space continues to exhibit high occupancy rates and stable rents. Similar to retail buildings, demand for high-quality office space is still strong in prime locations of major cities. Office space demand usually exceeds supply, as developers have been reluctant to invest in office space based on speculative demand. The commercial construction market is projected to contract by 0.2% in 2013 and recover thereafter to record a CAGR of 1.79% between 2013 to 2017.

The residential construction market across the region is among the worst affected, and has contributed substantially to the bleak financial situation facing countries Spain, Ireland and Greece. Property prices rose across the region in the pre-crisis years, leading to a construction boom in countries such as Spain and Ireland, while activity in other countries such as the UK, Belgium, Germany and France was more subdued. Governments across the region also invested heavily in infrastructure development before the economic crisis.

Construction activity over 2013 and 2014 is expected to move at a very sluggish pace. Austerity measures adopted by different countries to control the rising level of public debt are expected to hamper growth in all construction sectors. Of the few positive factors, inflation in the region has been fairly stable and nearer to central banks’ targets of 2%. High unemployment rates in the region have also kept labor costs under control. Relative stability in input costs has also provided some respite for the construction industry. It is expected that the Western European construction industry output value US$2.0 trillion in 2017 and record a CAGR of 1.79% between now and that time.

Reasons to buy
• Gain an overview of the market including price dynamics, demographic profiles and key construction indicators.
• Understand the construction market in Western Europe by reviewing the commercial, industrial, infrastructural, institutional and residential sectors.
• Get the upper hand on your competitors by obtaining numerous company profiles of some of the top Western European construction companies.
• Enhance your business using Timetric’s market data analysis for the different sectors of the Western European construction market.

 

 

 


Construction in South Africa Key Trends and Opportunities to 2017

By Edel Ayres - 2013-10-04 12:04:30  

The construction industry output in South Africa slowed following the 2010 FIFA world cup, but has started to recover recently.

Construction in South Africa offers the following information.

• In depth analysis and market overview of the South African construction sector including  key trends and issues, price dynamics, key construction indicators and more.
• Market attractiveness and future prospects of the South African construction industry.
• A segmented breakdown of the South African construction market with analysis of commercial construction, industrial construction, residential construction and more.
• An insight into the industry size and growth potential.
• A look into an assortment of company profiles from some of the main players within the South African construction market.

This will facilitate:
• The increasing of your knowledge of the South African construction industry.
• Your understanding of the key drivers within this industry.
• A clear understanding of market opportunities and entry strategies to gain or grow your market share in the South African construction industry.
• A greater understanding of the competitive landscape of the South African construction industry.

Overview of the construction industry in South Africa

The South African construction industry recorded a CAGR of 13.72% over the last five years and valued ZAR430.1 billion (US$52.4 billion) in 2012. The construction industry output slowed following the 2010 FIFA World Cup, but has started to recover recently. Under the National Infrastructure Plan (NIP) that was adopted in 2012, the government will invest ZAR827 billion (US$100.8 billion) in infrastructure development over the next few years. The country faces a substantial housing deficit and will need government support to develop public housing and drive the residential construction market. The industrial sector, which had benefited from low wages, now faces labor unrest and will have to focus on increasing productivity to remain competitive. While the large number of projects announced provides hope for the construction industry, corruption, mismanagement and price fixing threaten to undermine the proper implementation of these developments.

 

Poor infrastructure has traditionally been a severe bottleneck to economic development in the African continent. The South African Development Community (SADC) accounted for 12% of South Africa’s exports in 2012, the country’s second-largest exports destination after the EU. According to government estimates, the SADC region could be South Africa’s biggest market for manufactured exports by 2017. As the country could not rely on domestic demand due to a smaller population, it was therefore imperative that South Africa develop its infrastructure to not only increase the competitiveness of its own industry but also facilitate trade ties with growing African economies.

Housing prices started to increase in 2012, whereas high debt levels of South African households held back a full-scale housing market recovery. Reserve Bank data shows that South Africa’s exposure to credit in the private domestic sector increased from ZAR230 billion (US$31 billion) in 1994 to ZAR2.1 trillion (US$286.4 billion) in 2010. High debt levels and bad credit ratings make it impossible for much of the population to obtain loans.

In 2010, 75% of housing completions were in the subsidized market. Despite the government’s efforts, the country faces a large affordable housing deficit of 2.1 million units; currently 1.1 million households live in informal settlements. A lack of serviced land is one of the key reasons limiting the government’s capacity to deliver affordable and subsidized housing.

 

 


The Iron and Steel Construction Market in Europe Key Trends and Opportunities to 2017

By Edel Ayres - 2013-10-04 11:33:38  

The Iron and Steel Construction Market in Europe discusses the economic uncertainty in Europe which has led to moderate demand for Iron and Steel.

This report offers:
• In depth analysis and market overview of the iron and steel market in Europe including market dynamics, key trends and issues and key market indicators.
• Market attractiveness and future prospects of the European iron and steel construction industry.
• A segmented breakdown of the competitive landscape and industry dynamics within the European iron and steel construction market and the sectors within it.
• An insight into the industry size and growth potential.
• A look into an assortment of European iron and steel construction companies including company overviews, services, history, employees, etc.

This will facilitate:
• The increasing of your knowledge of the European iron and steel construction industry.
• Your understanding of the key drivers within this industry.
• A clear understanding of market opportunities and entry strategies to gain or grow your market share in the European iron and steel construction industry.
• A greater understanding of the competitive landscape of the European iron and steel construction industry.

Economic uncertainty in Europe leads to moderate demand for Iron and Steel.

The European iron and steel construction market consists of four categories: railway materials, pipes and tubes, fabricated structures and parts, and reservoirs, tanks and other containers. The need for and use of these categories varies. The largest category in the European iron and steel construction market was pipes and tubes with a market share of 50.4% and a value of over US$40 billion.

In terms of growth, the reservoirs, tanks and other containers category is estimated to record a CAGR of 5.28% over the next 5 years. This is a drastic turnaround in comparison to the last 5 years where the CAGR was recorded at
-4.21%. This trend is set to continue across all categories within this market and will result in the European iron and steel market growing at an estimated CAGR of 4.40% over the same period, comparing this to a previous CAGR of
-6.18%, we can see that it may be a promising time for the industry.

 

Target audience
• Construction companies.
• Suppliers to construction companies.
• Contractor research organizations.
• Trade body, academia or other industry observers.
• Companies involved at any stage in the manufacturing, procurement and marketing process.
• Marketing and advertising agencies.

 

 

 


What is your story?

By Edel Ayres - 2013-08-19 14:08:36  

In 2012 I wrote Abrasives Market Report 2012 which examined the global abrasives industry including analysis of materials and finished products. I spent five months reading articles, reviewing websites and speaking to key industry professionals in order to get a clear picture of the industry. I wanted to see how the industry was evolving and I was especially interested in how older established companies were coping with the new and increased competition from developing economies.

As we all know in the industry low cost producers of abrasives materials now dominate. However, when it comes to abrasives products (coated abrasives, bonded abrasives and superabrasives) the companies who invest heavily in developing customer relations are the strongest. They listen closely to the needs of their customers, they adapt their product range to their customers specific requirements, they regularly attend trade fairs to get that 'on the ground' industry knowledge. This approach is key to winning new contracts and maintaining established relationships.

We would like to hear about your experiences of competing in the new globalised economy. How are you building relationships with your clients? What are the key factors in the success of your company?

Tell us your story and we will share it.


Blog: The Abrasives Industry

By Elinor McClarence - 2010-07-16 17:02:39  

Got a question you need answered? Got an issue you need to share? Post your thoughts and network with your industry peers on The Abrasives Hub's Blog.


Comment on Blog: The Abrasives Industry

By Elinor McClarence - 2010-08-09 17:01:43  

Please check out the new reports which have been put up under the Member's Area. One is on global trends driving the market for Garnet, the other on growth factors for the Chinese market. 

How is everyone finding the Abrasives Hub's news and content? I would be interested to hear new member's thoughts and ideas. - Elinor 


Comment on Comment on Blog: The Abrasives Industry

By Sophie Williams - 2010-09-03 14:32:13  
I found the Chinese Report interesting, though I would have liked to know if there are any longer term forecasts on coated abrasives available. Also it may be useful to report on the UK and US markets - Sophie W

Comment on Comment on Blog: The Abrasives Industry

By Jerzy Pinkalski - 2011-02-07 12:40:51  
Hi Elinor , I've just joined Abrasiveshub and checked these reports . Quit interesting . Do you have any reports coming which would cover eg. CE Europe or Russia ? cheers Jerzy

Comment on Blog: The Abrasives Industry

By David Wallace - 2010-09-05 17:28:30  
As 'Green Technology' is very topical in most industries, who are the companies that are leading the way in the abrasives industry and can we look forward to any future publications on this important topic in the Abrasives Hub magazine? J

Comment on Comment on Blog: The Abrasives Industry

By Elinor McClarence - 2010-09-06 13:11:52  
Jack, we are hoping to do a 'Green' industry survey over the next few months, from which we can collate a industry report to see how the abrasives industry is doing in keeping up with new green legislation, incorporating 'green technology' and generally being environmentally friendly.

We hope to cover news on the larger companies that are at the forefront of this, but notably abrasive companies do not seem to promote their green initiatives much!

Comment on Comment on Comment on Blog: The Abrasives Industry

By Elinor McClarence - 2010-09-08 12:59:49  
Check out our abrasives advertising options. With web advertising rapidly becoming the most popular and effective means of promotion we offer an affordable and useful service.  Click on 'Advertising' or go to 'Offers & Discounts' in the Members area for the latest deals

Comment on Blog: The Abrasives Industry

By Peter Schroth - 2011-03-16 13:28:44  
We are a small manufacturer of thrust bearings and vibratory debur them. We are adding on to our facility and want to create a room to house our two vibratory machines, the machines are each 5 cubic feet. I'm looking for any design suggestions for this room, walls, floor and mounting machines. Thanks Peter

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