Construction materials industry is not out of trouble yet

Located in the last link of the real estate value chain - the construction materials industry is closely related to the industries in the above link. Therefore, when the real estate situation began to stagnate from the end of 2022 until now, the construction demand also fell into a similar situation, causing difficulties for production and business units in the construction materials industry.

High-end stone cladding production line of Cu Nga (Dong Son) Company Limited.

As a unit specializing in supplying ceramic tiles, high-end furniture..., Showroom Mien Trung, Dong Ve Ward (Thanh Hoa City) is also facing many difficulties during this time. The main reason is that the speed of construction investment is slowing down, many infrastructure projects are being implemented slowly or have to be postponed, making the business situation not very optimistic. At the same time, increased transportation costs also increase the price of construction materials, combined with external impacts from the market.

Ms. Phung Mai Anh, manager of the Central Showroom, said: "Currently, the processing and supply capacity of the Showroom has decreased by more than 30% compared to the same period last year. The amount of inventory is still quite large, causing a significant impact on production and business activities. Therefore, to overcome adversity, there is no other way than the efforts of the enterprise itself. In the coming time, we will focus on restructuring, re-evaluating the business model and optimizing operations to ensure sustainable development and competitiveness. In the business and trade sector, the unit will proactively increase recognition, seek and develop more distributors and different agents. In particular, focus on controlling inventory, tightening management to minimize production costs, lower product prices, improve quality to create a competitive advantage in the market".

In fact, due to the slow consumption of products, many enterprises have been forced to stop some production lines, leading to cash flow to pay bank debts and raw material costs for production becoming more difficult than ever. Therefore, the construction materials industry is witnessing a change in business direction of many construction materials manufacturing and trading enterprises.

Also one of the units specializing in stone construction, the production activities of Cu Nga One Member Co., Ltd. (Dong Son) have also slowed down for a few months since the beginning of the year due to signs of a decline in the consumer market. According to the company director Tran Ngoc Cu: Currently, although orders are still available until the end of the year, the speed is much slower than last year. Knowing that this is a common difficulty for the entire construction materials industry, the company must also seriously re-evaluate its business performance. This is extremely necessary, not only to understand the needs of customers but also to be an opportunity for units to recognize and take advantage of competitive advantages. Accordingly, the company has focused on improving the qualifications and skills of personnel and machine operators in a professional manner. At the same time, develop new products such as decorative ceramic printed glass and process products with modern machinery and equipment... In addition, the company also plans to stock up on goods to serve the construction season at the end of the year with the hope of regaining its position for the construction materials industry in general and for its own company in particular.

According to statistics from the Thanh Hoa Department of Industry and Trade, since the beginning of the year, many construction materials have maintained an increase in production compared to the same period, of which construction bricks increased by 9.1%, iron and steel increased by 11.2%... According to businesses, the decrease in lending interest rates, the promotion of public investment along with policies to promote the real estate market will be the driving force for the construction materials industry to continue to recover in the second half of 2024. Along with that, the current price of construction materials has decreased by about 10 - 15% compared to the beginning of the year, which is also a factor positively affecting consumption in the market.

However, in order for construction material enterprises to face the challenges and difficulties ahead, each enterprise needs to review its development mechanisms and policies; especially, it needs to be more flexible and proactive in production and business plans, balance supply and demand, and improve market forecasting capacity. Thanh Hoa Industry and Trade Department is also supporting construction material enterprises to connect and stimulate consumption of products in the province; creating favorable conditions for enterprises to stabilize production and boost consumption of goods.

Article and photos: Chi Pham

Source: https://baothanhhoa.vn/nganh-vat-lieu-xay-dung-chua-het-kho-224971.htm