The Demand for Precast Concrete

Covid-19 caused many disruptions in our lives and the way we do business. One disruption in particular was the supply chain - there was great consequence as a result.

National lockdowns slowed and temporarily stopped the flow of raw materials and finished goods, disrupting manufacturing as a result.

Businesses pulled out of construction projects with fears of increased liability and decrease in profit margin.

Creating More Resilient Solutions

When adversity is faced and new problems are created it presents an opportunity for improvement - for a better solution, a better way to do things.

The building industry is finding resilience and opportunity in precast concrete.

Precast concrete is reinforced concrete constructed by industrialized methods. It is characterized by dividing the building into components, which are manufactured in a precast concrete plant, and transported by special transportation equipment to the site.

Concrete is the most commonly used building material in the world, and precast concrete components and structures provide a creative way to extend the use of concrete.

Facing the increasing challenges of the construction industry, such as energy saving and environmental protection, material and supply costs, labor shortages, and meeting the demands of technological advancements, precast concrete is a great solution.

The Future of Precast Concrete

Experts from the construction industry predict a bright future for precast elements: the average annual growth rate of the global precast concrete industry is expected to be 5.3% between 2021 and 2028.

In 2020, the precast concrete market was valued at around USD 92.14 billion and is anticipated to grow to over USD 139.33 billion in 2028.

However, the average growth rate of the construction industry as a whole is expected to be just 3.2% annually according to the Global Construction Report.

Why industrialized construction in particular is growing faster than the rest of the construction industry can be explained by the numerous advantages of this technology.

6 Major Advantages of Precast Construction:

1. Greater efficiency, shorter lead times and higher precision.
2. Increased work safety on the construction site, components no longer are made directly on the site.
3. Lower carbon footprint - Better on the environment by avoiding material waste due to more efficient prefabrication of materials.
4. Accuracy of cost and time planning.
5. Less weather constraints - Precast concrete makes it possible to complete construction projects even during the extreme weather that comes in cold winter months.
6. Cut in labor costs - Because precast concrete is so easy to install and requires little maintenance over time, you’ll save on labor costs compared with brick or stone masonry walls that may need periodic repointing due to their porous nature.

Commercial and Residential Projects

Precast concrete structures are well recognized as environmentally friendly and cost effective structural systems, so there is no doubt that precast technology will play a very important role in future construction activities.

In fact, right here in Birmingham AL the new Residence Inn by Marriott (located next to BrickTop’s in Homewood) is being built with precast concrete.

But it’s not just commercial projects leveraging precast concrete, it’s residential as well.

Precast concrete homes may not yet be mainstream, but every day more residential architects, builders and homeowners are discovering what precasters and their customers have long known – building with precast concrete offers advantages during all stages of the project and beyond.

A precast home has many advantages such as being more cost effective and endurance with bad weather, but also speed in construction. It can take just a few days to build a precast shell whereas it would have taken months with a traditional build of a wood framing, poured basement and a wood floor system.

For construction management companies, business owners, construction companies, and the construction industry in general, precast products and services speed up the production process, saving time and cash flow.

It also helps reduce costs for construction materials, labor, and more compared with traditional concrete plants and traditional construction processes.

It’s also making headway in the residential space.

This is one trend definitely on the rise, it will be interesting to see where it goes. 

Real Estate Matrix is one of the Southeast’s premier commercial valuation firms and has participated in the valuation of billions of dollars in real property assets.

We would appreciate the opportunity to add you to our very long list of pleased clients.

You can give us a call or click here to fill out our Free Quote Appraisal Form.