SWOT Analysis of Cement Industry. Cement is a chemical material for construction and it comprises of sticking and hardening the other material and binding them together. Often, they use it in combination with other sand and gravel in the production of concrete. Concrete is the most widely used material and it requires water.
Some of the main types of cement are as follows
- Hydraulic Cement
- Non-hydraulic Cement
Raw materials used for the production of cement are as follows;
- Silica Sand
Key statistical facts and figures about the cement industry are as follows;
- The market size of the cement industry in 2022 was 340.61 billion US dollars
- It would reach 481.73 billion US dollars by the end of 2029 with a growth rate of 5.1%
- 3rd the world’s largest industry and it releases 500 kilotons of carbon monoxide, sulfur dioxide, and nitrogen dioxide
Some of the top companies in the cement industry are as follows;
- Grasim Industries Ltd – India
- CEMEX SAB De CV – Mexico
- Mitsubishi Materials Corp – Japan
- The Siam Cement Public Co Ltd – Thailand
- BBMG Corp – China
- Heidelberg Material AG – Germany
- Anhui Conch Cement Co Ltd – China
- Holcim Ltd – Switzerland
- CRH Plc – Ireland
- China National Building Material Co Ltd – China
Today, we’ll discuss the swot analysis of cement industry. It is going to focus on the internal strengths and weaknesses; external opportunities and threats to the cement and concrete material business. Here’s the swot analysis of cement industry as follows;
Strengths of Cement Industry
Some of the main strengths in the swot analysis of cement industry are as follows;
Mega Power Plan
The production of cement is not the work of small industries. It requires mega production plants and manufacturing facilities that are highly visible from a distance. However, running a business in the cement industry is a bit easy because you have to follow the pre-decided rules and regulations, supply chain, and distribution network. Only top leading companies are running their business in the cement industry.
Well-packed cement could last for a few months. It becomes possible for businesses and companies to distribute cement through sea shipment in various parts of the world. However, sea shipment amplifies the market size of companies.
There are various low-cost cement manufacturers and they have established a strong market reputation among the public. It is significant for businesses and companies to follow in the footstep of low-cost cement producers and target the price-conscious market segment.
There are various leading brands operating their business in the cement industry. They have established a strong market share, trust, and confidence of customers.
Weaknesses of Cement Industry
Some of the main weaknesses in the swot analysis of cement industry are as follows;
There are mega cement manufacturers and they are covering a vast area of the market. They do so by distributing cement in far-off distant places. In case of damaged packaging, then it would disrupt supply and demand.
High Production Cost
Launching a cement manufacturing company requires a lot of capital investment, and the plant running cost is also very high. They have to follow the fixed pricing strategy of the industry, it would be difficult for cement companies to maintain their position if they charge less or more.
Demand & Supply Gap
The cement manufacturing plan has a specific production capacity and it can’t go above or low if it works 24 hours round the clock. On the other hand, the market demand for cement keeps on changing. An imbalance in supply and demand would disturb the profitability and sale of the company.
Opportunities for Cement Industry
Some of the main available opportunities in the swot analysis of cement industry are as follows;
Commercial Construction Projects
Commercial construction projects are the top consumer of cement and other construction materials. Cement companies should keep in mind various commercial projects before choosing any place for the development of the manufacturing plant.
The establishment of the cement production facility requires heavy investment. No easy entry into the cement industry is a plus point for the business. However, cement manufacturers don’t have to worry about random small companies, and they won’t jeopardize the market growth and size of the already established companies.
Mega government infrastructural projects consume a significant amount of cement. Therefore, cement companies should directly bid on government projects and win the government contract. They don’t worry about the sale of cement for a few months to years depending on the scale of the infrastructure.
Threats to Cement Industry
Some of the main potential threats in the swot analysis of cement industry are as follows;
Excess Supply Impacts Prices
As many of you are aware the economic concept is that excess supply of a particular product impacts its price. It would be the case with the cement industry, if more cement manufacturers have occupied the market, then it would be difficult for the cement companies to remain profitable.
Merger & Acquisition
Mergers and acquisition of the top cement brands would significantly impact the supply and demand and cement market. It has happened in the tech and medical industries, and the same thing could happen in the cement industry, it would disrupt the flow and business of the cement market.
Conclusion: Cement Industry SWOT Analysis
After an in-depth study of the swot analysis of cement industry; we have realized that the cement industry is the world’s leading and most profitable industry. If you are learning about the business of the cement industry, then you should keep in mind the abovementioned internal and external factors.
Ahsan Ali Shaw is an accomplished Business Writer, Analyst, and Public Speaker. Other than that, he’s a fun loving person.