Demand Overseas
Growth will be driven by an increase in new construction, as well as more improvement and repair projects. These advances will, in turn, be fueled by continuing industrialization and urbanization in China.
“The demand for construction chemicals internationally is excellent where construction is in similar pace to India. Our percentage of exports as of now is 10% of the total sales of construction chemicals,” Vidyut Acharya, Director of Associated Chemicals
A focus on improving the general quality of construction will also boost gains by increasing the volume of chemicals used in construction applications, as well as spurring demand for higher-priced, value-added types. Production cost increases will contribute to growth in value terms, although competition within the industry will prevent suppliers from fully passing these effects through to end users. A slowdown in urban real estate markets in China will result in a deceleration in construction expenditure gains and associated chemical product sales from levels seen over the past decade.
Gains will be driven by sustained government investment in institutional buildings and foreign investment in manufacturing facilities, as well as by the use of high-end products in many of these applications. Residential building consumption of construction chemicals will be spurred by continuing urbanization in China, and by rising income levels and living standards leading to higher consumer expectations of housing quality. Non-building construction chemical demand will benefit from sustained high levels of government investment in transportation infrastructure.
Challenges
Alongside the growth and well development, the CC and waterproofing industry has also seen several short-comings and challenges on its way. The industry holds its stand strong against all the odds and tragic situations accruing in a regular time frame.
Among the numerous challenges faced by the industry, the most common to hinder the growth of CC and waterproofing sector are unskilled labours, frequent shortage of raw material leading to price hike.
“Consistent shortages of key high performance raw materials along with increasing costs are a big worry in the short term. Lack of standards in application of products and the unchecked entry of inferior quality product manufacturers is tarnishing the image of the industry. While awareness on the use of construction chemicals is now high, lack of specific education infrastructure for users and applicators is another challenge,” says Swapnil Deshmukh, Marketing Manager, Chembond Chemicals Ltd.
According to R Mukudan, co-chairman of the National Chemicals Committee, FICCI, a staggering 85% of industry players are not fully aware of the benefits of construction chemicals. Crystalline waterproofing admixtures, for example, can reduce jobsite waste, speed up construction processes and eliminate the reliance on traditional waterproofing products that are tough on the environment.
Another huge challenge is how, as an industry, we can align construction chemicals with sustainable development. Although there are green products on the market, such as Kryton’s Krystol Internal Membrane, surprisingly few companies have developed sustainable options for infrastructure and construction projects. Many speakers tackled this idea by exploring the conference’s theme, “Durable Construction Using Construction Chemicals,” with the concepts of recyclable concrete and ‘cradle to cradle construction’ generating the most buzz.
