Drop in building material prices to lift the construction sector globally in 2023

Despite the economic challenges faced by the construction industry globally, the market has continued to perform relatively well in Saudi Arabia.

Globally, 2022 has been a difficult year for the construction market. The macroeconomic factors, including rising interest rates and construction material costs, have had a significant impact on industry growth.

The macroeconomic environment along with rising construction costs and labor supply has impacted the growth of the Malaysian construction market over the last 12-month period.

Amid the recessionary fears and declining spending by businesses across industry verticals, the commercial sector is projected to remain one of the worst affected sectors in the United States construction market in 2023.

The construction market has been severely affected ever since Beijing announced the crackdown in 2020.

More global hotel brands are projected to undertake new construction projects in 2023, as the rebound in tourism activities continues over the next 12 months.

Amid the ongoing economic recovery in the Asian market, the demand for construction materials has also increased significantly across the region. Different government institutions, including in China and India, have announced various measures and increased spending on infrastructure and residential construction projects.

Growing environmental concerns and increasing awareness of using renewable resources for industrial purposes are considered to be the two most important factors which have led to the increasing demand for bio-based chemicals in the United States

The world is moving towards low-carbon building practices in a bid to achieve greenhouse gas emissions targets. This has resulted in growing investment in green construction tech from venture capital firms over the last few years

Just like the 2022-23 Union Budget, the Indian government has announced an increased infrastructure spending for FY 2023-24. In their effort to provide a strong impetus for job creation and strengthen macroeconomic stability amid a global slowdown, the government has increased its infrastructure budget to INR 10 trillion. The capital expenditure has been allocated toward the development of railways, roads, power stations, telecommunications, and affordable housing.

The growing investment will not only increase the supply of affordable housing in the country but will also drive the growth of the construction chemicals market from the short to medium-term perspective.

In 2022, the Chinese government announced a series of policy measures to revive the struggling real estate and construction market in China.

Just like the 2022-23 Union Budget, the Indian government has announced an increased infrastructure spending for FY 2023-24.

The handling of the global pandemic outbreak and liberal visa policies announced by the Emirati government has attracted foreign buyers in huge numbers.

The rebound in economic growth, which supported higher construction activities in Switzerland, has resulted in a positive growth environment for construction chemical firms in 2022.

Saudi Arabia has announced several giga projects over the last few years and the investment towards the development of these projects has resulted in a robust construction market.

Over the last 12 months, the global prefabricated industry has recorded strong growth. Drive by rising construction material prices, inflation, and other macroeconomic factors, many of the leading global players in the prefabricated construction

The Indian construction industry has witnessed a significant transformation with the emergence of new players in the market. Higher government spending on infrastructure and the affordable housing sector has not only driven the growth of the construction industry

National and state governments, around the world, are facing a severe affordable housing problem. Growing urbanization, impact of the Covid-19 pandemic, and inflation are among the many factors that have resulted in a severe shortage of affordable housing units globally.

Over the last few years, modular construction has gained widespread popularity as a way to build structures quickly, efficiently, and with less waste. Driven by investment from government and private institutions, the prefabricated construction industry has recorded strong growth in 2022.

In 2023, a combination of factors is expected to drive the growth of the global construction chemical market. One of the key drivers of this growth is the increasing demand for infrastructure development worldwide.

To capitalize on the growing demand for cement, manufacturers are expected to add further capacity to their existing production from the short to medium-term perspective. Many of the leading cement manufacturers, globally, have already announced their plans to expand cement capacity to meet the growing demand.

The Chinese central bank has also guided financial institutions in the country to offer normal financing services to developers. This is part of the central bank’s strategy to maintain stable and orderly financing in the Chinese real estate market.

The firm attributed the subdued growth to extended monsoon, which affected retailing during the peak festival season. In November and December, though, the firm recorded double-digital growth in the decorative paints segment, which represents about 80% of the total revenue for Asian Paints.

Over the last 12 months, the global prefabricated industry has recorded strong growth. Drive by rising construction material prices, inflation, and other macroeconomic factors, many of the leading global players in the prefabricated construction