Global concrete and cement market 2017Document Transcript
Global Concrete and Cement Market – Key Trends
and Opportunities to 2017
The key priorities by senior-level respondents in 2013 are strategies to ‘expand in current market’, ‘improving
operational efficiency’ and introduction of ‘new products and services’.
Aarkstore Enterprise (India), 28th
September, 2013 : Throughout the construction industry, 58% of senior-level
respondents are ‘more optimistic’ about revenue growth for their company in 2013. Higher optimism levels are
attributed to growing investments in the development of new infrastructure by the central governments of various
countries, a surge in public and private sector construction projects, and increased focus on developing IT
infrastructure. The key priorities by senior-level respondents in 2013 are strategies to ‘expand in current market’,
‘improving operational efficiency’ and introduction of ‘new products and services’.
Senior-level respondents from the global construction industry expect to see increased levels of consolidation in
2013, with 54% of respondents anticipating either a ‘significant increase’ or an ‘increase’ in merger and acquisition
(M&A) activity. Gradual recovery in business sentiment within the global construction industry, renewed focus on
expansion activities, increasing cost pressures on small and medium-sized construction companies, growth in
infrastructure projects driven by urbanization and growing demand for sustainable construction are the key drivers
of M&A in 2013.
An analysis of responses by global construction industry senior-level respondents reveals that ‘new product
developments’, ‘IT infrastructure developments’ and ‘machinery and equipment purchases’ will record significant
increases in capital expenditure in 2013-2014.
China, India, Brazil, Russia and the UAE are considered key emerging markets in 2013
Senior-level respondents from construction companies identified China, India, Brazil, the UAE and Russia as the
emerging markets which will offer largest growth potential in 2013-2014. Strong economic growth driven by
increasing domestic consumption has boosted the prospects of the construction industry in China. Demand for
construction equipment and material in China has surged during the past five years due to increased investments in
the infrastructure sector. Construction activity in India also increased steadily over the past decade due to growth in
infrastructure developments supported by new projects in housing, roads, ports, aviation and power generation.
The top five developed markets that are expected to offer strong growth in 2013-2014 are the US, Singapore, Taiwan
and Hong Kong, Canada, Australia and the UK, as identified by 44%, 33%, 31%, 29% and 28% of senior-level
‘Market uncertainty’, ‘cost containments’ and ‘retention or recruitment of skilled staff’ are the leading business
concerns in 2013
According to the survey results, 55% of senior-level respondents rate ‘market uncertainty’ as the most pressing
business concern during 2013-2014. Economic volatility, changing business environment, prevalent credit and
liquidity conditions and mounting cost pressures are key reasons for market uncertainty. In addition, 51% and 49% of
senior-level respondents rate ‘cost containments’ and ‘retention or recruitment of skilled staff’ among the leading
business concerns during 2013.
Overall, 43%, 39% and 32% of senior-level respondents highlighted steps to ‘innovate products’, ‘improve customer
services’ and ‘provide support for generating new businesses’ as the leading actions for suppliers to secure buyers’
• 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
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