info@marketresearchfuture.com   📞  +1 (855) 661-4441(US)   📞  +44 1720 412 167(UK)

Commodity Price Increases will Adversely Affect the Building Industry

By Garvit Vyas , 26 October, 2022

According to a domestic rating agency, ICRA, a sharp rise in commodity prices and increasing competition will hurt the building industry's profitability. due to the significant increase in the prices of essential commodities, particularly steel, bitumen, and cement, the industry is struggling with pressure on input costs.

ICRA stated that "sharp increases in commodity costs, coupled with increased competition, will have a detrimental impact on industry profitability, with a projected drop in operating profitability of 100-200 basis points in the current year."

If maintained, a high increase in commodity prices seen in FY22 could lower participants' profitability in the current fiscal year by 100 to 200 basis points.

Moreover, the stringent COVID-19 lockdown in Asian countries such as China, Japan, India, and the European Union has induced severe energy crises and disruption in the supply chain. This scenario increases construction materials and equipment prices even if the year-by-year price increases are moderate.

However, improving automation in manufacturing and construction processes and focusing on infrastructure favor industrial growth. The expansion of road development initiatives carried out by various central and state governments has led to a significant increase in the market for road construction machinery in recent years.

For instance, in May 2022, Volvo construction equipment and World RX worked on developing the next generation of rallycross tracks. Volvo CE announced it would expand its commitment by becoming the series' official track-build partner.

Tata Hitachi launched the 5-tonne wheel loader ZW225- touted as the epitome of reliability and productivity that is Made-in-India with Japanese technology.
 

                           Commodity Price Developments Energy

Development.jpg

Latest News

market.png
Renewable Energy Production Slows down due to Lack of Transformers

Renewables are in high demand in the energy market in 2024. It is due to a clean energy transition that requires a constant flow of renewables in the energy market. The green transformation to combat climate change brings about several environmental…

Read More

period.png
Packaging Manufacturer Collabs with Solar Projects to Enhance Cleantech in 2024

Companies are making significant moves towards the clean energy transition in various ways. In order to reduce carbon emissions, certain companies are investing in several rescue methods in 2024. Renewables production is growing over time as the…

Read More

Amazon.png
Amazon Enables News Technologies to Help its Business Customers

Amazon is one of the leading global e-commerce platforms for consumers. The brand boosts its online shopping experience for users in multiple ways. Surveys show that Amazon regulates several business solutions to increase its products and services…

Read More

2023.png
Asian Carbon Emissions Affects West’s Clean Energy Transition Process in 2024

Globally, countries are facing challenges in the transformation of green energy. The economies worldwide target to achieve net zero emissions. Hence, countries are introducing several ways to reduce environmental carbon emissions. Developing…

Read More

2023.png
China to Boost Oil and Gas Production from New Sources in 2024

China is the leading nation in the energy market. Since the clean energy transition focuses on renewables, China surpasses other nations in renewables production. In a mission to strengthen its energy security, China moves forward with oil and gas…

Read More

Author Pic
Garvit Vyas

Analyst