Introduction:
Places that keep you growing & going add up the place we dwell at, roads helping us commute, place we work at, Place that imparts Knowledge and everything concrete that gives on a roof above the head to provide warmth. That’s where construction Industry plays a major role by creating those places of peace. But what all takes for the Construction Industry to deliver a concrete Jungle are the Building Materials, the back- bone of Construction, The root of our Infrastructure. Building Material industry is the group of industries involved in construction of infrastructure. Building Materials use natural as well as Man- made elements for construction of Residential, Commercial & over all Infrastructure.
![](http://blog.jhirani.com/wp-content/uploads/2020/09/Annotation-2020-09-01-122621.png)
These raw materials are segmented into different & very specific artworks like:
![](http://blog.jhirani.com/wp-content/uploads/2020/09/1.1-300x252.png)
Year 2019 was a dynamic year for this Industry. The demand for this industry shot up due to Initiatives like:
![](http://blog.jhirani.com/wp-content/uploads/2020/09/1.2-300x251.png)
Economic Impact
If the growth is to be analyzed segment wise, the following infographic would let you know the growing ones!
Similar to the growth numbers from 2019, it was expected that Building Material Industry will show a positive growth in 2020 too. Being the 2nd largest employer of India, It comprises 8% of the GDP of our country.
![](http://blog.jhirani.com/wp-content/uploads/2020/09/Annotation-2020-09-01-224123.png)
Growth Projections
According to the estimates, Building Materials Industry is expected to
![](http://blog.jhirani.com/wp-content/uploads/2020/09/Annotation-2020-09-01-123511.png)
Impact of COVID-19 on Building Materials Industry
The plumbing pipe segment might not see a notable shrink in the demands probably because of the Monsoon. During monsoon, pressure cracks, drainage issues, etc cause the need for plumbing grow upwards. Specifically, the reason behind the minimum impact is due to:
![](http://blog.jhirani.com/wp-content/uploads/2020/09/Annotation-2020-09-01-123803.png)
After plumbing, the next segment which won’t have a major impact is adhesive. A pie chart here will help you understand the segments that need help & those which are doing just fine, considerably. Then comes the Cement segment. The demand for cement in the market was sluggish in the first quarter of 2020-21 and according to the estimates, it may decline in single digits from 2nd quarter on wards. On the contrary, the growth in the Cement industry might get hit by a jump of 4%- 5% negative growth on a year-on-year. Building Materials Industry is closely connected to Construction Industry. Due to gradual stoppage at the construction sites & cement plants, this pandemic has not only impacted the market but also its stakeholders.
![](http://blog.jhirani.com/wp-content/uploads/2020/09/1.4.png)
Impact of COVID on the Stakeholders
![](http://blog.jhirani.com/wp-content/uploads/2020/09/Annotation-2020-09-01-224330.png)
![](http://blog.jhirani.com/wp-content/uploads/2020/09/Annotation-2020-09-01-224358.png)
Due to decreased capital, new demand for houses, offices & corporate houses, Construction Industry may take approximately 6 to 12 months to get back to its original earning capacity.
The Today & Tomorrow (Survival to Revival)
![](http://blog.jhirani.com/wp-content/uploads/2020/09/1.1-1.png)
![](http://blog.jhirani.com/wp-content/uploads/2020/09/1.2-1.png)
Times today demand without giving us a choice. The demands are: Survive, Transform & Keep moving forward. And while such disruptions knock at your doorstep, it is inevitable to not find a way to open the door!
Author
Shivangi Makhija, A PGDM in Finance by education & a Business Analyst at J. Hirani has worked for Power Backup & Forex industries so far. She is a spontaneous & a wanderer at heart, yet focused & patient which makes her versatile in her own ways!
Guide:
Parth Hirani, is leading a strategic advisory practice at J.Hirani & has helped various organizations align strategies across continents. A social & collaborative sapien by nature. He enjoys being a full time “dreamer” & loves challenging “possibilities”.
Success mantra- “We believe it’s possible; while maintaining flexibility on “How” we are “Rigid” on our “Goals”
About J.hirani: J.hirani is a Strategic Transformation team which works as a growth partner for different organisations in various industries by providing services like Agile transformation, Scenario mapping, Strategic alignment, Balance scorecard, Digital transformation, Incubating new ventures, Operation excellence and Aligning human capital.
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