The Future of the Construction Materials Industry

Certain sectors of the construction industry underperformed in the last few years due to different market factors and industry dynamics making it difficult to incorporate change. However, we can now see new technologies being used in the industry, and the increased digitization is slowly transforming the construction industry for the better. Most surveys attribute the increase in the pace of this change as mainly due to the COVID-19 pandemic. Digitization in the industry accelerated after the pandemic, forever changing construction. 

With increasing investment in digitization, the industry dynamics are expected to shift and become more standardized and consolidated. Businesses can triple their profitability by playing it smart and getting in on the action early. Let’s have a look at the material industry and its logistics to get an idea about the future of the construction industry. 

Construction Materials Industry

The overall construction materials industry is made up of numerous different companies that are involved in the mining, quarrying, and processing of raw materials to use them in construction. The materials that are used most often in the construction of residential and industrial infrastructures are cement, sand, gravel, clay, concrete, and marble. When you are choosing building materials, you need to be conscious not just about the cost but also about pollution, energy, and other social aspects that are affected by its use in construction.

Statistics

In 2019, the per capita sales in construction materials stores were recorded at 1,137 US dollars. The sales per capita rose to 1,281 US dollars in 2020. The construction materials industry seems to have recovered from the 2009 recession and continues to grow alongside the construction industry.

In 2022, based on sales, Saint-Gobain topped the list of world’s largest global construction material manufacturers. The company’s revenue stream changed over the years after it started producing construction and other high performing materials. This year, the company had 22.6% more sales than China National Building.

Disruptions in Material Distribution

Disruptions in the supply of materials are something that the construction industry has been facing for a while now. It is important to develop strategies to deal with these disruptions as they directly impact the value chain. Building material manufacturers are also under a lot of pressure due to new building standards. Due to natural disasters and other dangers, manufacturers are now expected to increase the strength and durability of building materials. 

Conclusion

The construction materials industry suffered quite a blow in the recession of 2009, however, it has since recovered. Many markets suffered due to the recession, although some industries / markets remained steady such as the CAT heavy equipment market. In 2020, the construction materials stores sales per capita were recorded at $1281, higher than they have ever been before. While there are still disruptions in construction materials supply, they are due to a shortage of supply and not a lack of demand. In order to predict what the future of construction materials industry holds; you need to look at what the statistics suggest.