Building Material Industry In Gulf

Construction in the Gulf is valued at 2.4 trillion dollars. It has been hit by increased demand for building materials worldwide as construction fever spreads to countries such as China.

The Gulf region has experienced its building frenzy over the past few years on the back of record-high crude oil prices, which are pumping huge liquidity into the economies of GCC.

But this building boom in the GCC member states – Bahrain, Kuwait, Oman, Qatar, Saudi, and UAE – has put extra pressure on the supply and cost of construction materials and labor force.

There is a chronic shortage of resources. Clients are facing a shortage of contracting capacity, while contractors have difficulty sourcing labor and materials. Among the critical factors was, knowing the limit in terms of the availability of materials and labor force.

Mitigation

Product

• Deleting products from the existing portfolio (low or non-performing)
• Categorizing products as per brand equity and positioning in the market
• Addition of products bringing volume/profit and uniqueness
• Economical and durable products
• Characteristic differentiation among products (no cannibalism)
• Market-specific product segmentation, e.g., industrial, premium projects, economical
• Focus on after-sales service

Sales

• Two modes of operations: Franchisee or Distributorship
• Brand-wise sales budget inclined on market…