By Joel Scanlon
According to a market research report titled, ‘Cement Products Manufacturing in China’ from IBISWorld, the Chinese manufacturing industry of cement products will grow at 16.8% of the average annualized rate to reach $145.48 billion in 2016. The ever-increasing demand from the Chinese infrastructure and real estate markets is the reason behind the rapid growth.
The Chinese cement products manufacturing industry will experience rapid increase in profits in the coming years thanks to the active polices of the Chinese government for investments in infrastructure development. The country is the largest producer of cement products in the world. Precast pipes, commercial concrete, piles and poles are some of the products utilized in the downstream construction applications. The industry does not include the cement mixing process.
The increase in local and international raw material prices and downstream demand from infrastructure construction industries and residential, industrial and commercial construction industries have an impact on the output of cement products.
As per the report, the revenue of the cement products manufacturing industry has grown at 31.5% of the average annualized rate over a five-year term ending 2011 amidst a sluggish growth in 2009 caused by the worldwide economic recession. The industry will experience a 25% growth in revenue in the fiscal year 2011 thanks to the robust economic growth of China.
A majority of the cement product manufacturers of the Chinese cement products manufacturing industry are small or medium-sized companies that are not capable of maintaining product quality and offering wide range of products. The existence of aged technology, equipment and facilities cause a high degree of labor intensity and a lower level of automation.