Impact of COVID-19 on the Global Construction Aggregates Market
The construction aggregates market has witnessed a negative impact on the product demand in recent months owing to the lockdowns imposed in the majority of the countries due to the outbreak of COVID-19 in December 2019. Several countries, including Italy, the U.S., and India, witnessed curfew-like situations where businesses (except for essential services with minimal workforce) were not allowed to operate. Besides, the impact of the COVID-19 outbreak has slowed down the growth of the construction industry in recent months, causing delays, which can be attributed to several disrupted supply chains. Most construction projects were temporarily shut down in recent months to prevent the spread of COVID-19. The factors mentioned above have significantly impacted the demand for construction aggregates in the last few months. Construction aggregate manufacturers and the overall construction industry are expected to face several challenges as most of the construction projects are likely to be left incomplete or be delayed owing to supply chain disruptions, cash flow constraints, unavailability of the workforce, and production shutdown.
Rapid infrastructural development, coupled with business capital investments in emerging economies, such as China and India, has propelled the demand for the construction aggregates. The increasing government investments in road and railway projects are expected to support the sales prospects of construction aggregates, globally. Additionally, projects such as the expansion of new airports and the remodeling of old airports will continue to fuel the demand for construction aggregates. Furthermore, the growing number of special economic zones (SEZs) are also boosting the global construction aggregates market. Special economic zones (SEZs) are established to promote industrialization and economic growth through sustainable development. As per the Ministry of Commerce, SEZs can enjoy tax breaks, simplified procedures, flexible regulations and restrictions, avail exemption from customs and duties to promote the export of goods, foreign investment, employment opportunities, and develop infrastructure facilities more effectively. Due to such government policies, the number of SEZs is growing significantly, which in turn propels the growth of the global market.
FDI IN TOP COUNTRIES, 2016–2019 (USD MILLION)