Continuing from the prior post on trends, that construction materials are decreasing in cost in the short-term.
China continues to acquire materials at increasing rates, accounting for 45% of world consumption in 2007. The rate of consumption grew 8.5% from 2006 to 2007. This type of competitive resource acquisition is expected to increase in additional sectors. By 2018, it is estimated that 80% of the world’s construction will take place in China and India.
Comments to the customer:
Prices for materials will increase in the long-term due to resource competition. This is a risk for both prices and procurement of US based construction materials. Recycling construction waste helps reduce costs as well eases the burden of materials acquisition.