Impact of COVID-19 on the Precast Concrete Market
Precast concrete is a construction product that is manufactured through casting concrete in a recyclable form. The reusable mold is then cured in a precise environment, conveyed to the building site, and utilized. Increasing investments by industry players and the rise in construction activities across the globe are key factors responsible for market growth. However, the spread of the COVID-19 pandemic around the world has negatively impacted the construction industry. The temporary suspension of construction activities has drastically affected the demand for precast concrete. The lockdowns imposed worldwide have delayed construction projects owing to which, companies are facing tremendous revenue losses. Companies are focused on reducing their operational costs and are rethinking their investment strategies, which is also impacting the growth of the market. Besides, the halted export of raw materials and fluctuating raw material prices due to the COVID-19 pandemic are also hindering the market growth. The suspended production of concretes owing to the postponement of renovation and rebuilding projects is also one of the factors responsible for hindering the growth of the market. Lockdown relaxations in some countries in Q3 of 2020 are expected to slightly raise the demand for precast concrete owing to the partial resumption of construction activities.
New Private Construction value in the U.S., 2014–2019 (USD billion)