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Ready-Mix-Concrete: Present and Future

  The ready-mix concrete industry was one of the first concrete industries established in the USA. In less time, RMC became the first choice for engineers across the globe. Ready-mix concrete plants play a vital role in the world of construction and development, especially when it comes to residential and commercial construction projects. This article presents some key figures on the present and future of this industry, along with the benefits of its growth over time.  

What is ready-mix concrete?

  Ready-mix concrete is the production of cement, gravel, sand, water, and other additives to produce a mortar of concrete. When these components are mixed together in the right proportions, they form a solid material that is ideal for creating strong foundations. Some examples include parking garages and even buildings.   Ready-mix concrete has been around since the 19th century but didn’t come into general use until after World War II, when people wanted to rebuild their countries. The process of mixing it up to create this material was much more time-consuming than it is today because there were fewer power tools available at the time for doing so, but with modern equipment, everything moves much faster today.  

The history of ready-mix concrete

India’s history with ready-mix concrete stretches back to the 1950s. However, it wasn’t until the late 1960s that the industry saw growth, thanks to a government scheme created by former Prime Minister Indira Gandhi that aimed to construct nearly 350 new bridges in only two years. Because of this increase in demand, demand for ready-mix concrete continued to rise. In 1965, public authorities were granted permission for the first time to issue construction permits for buildings without an Indian building contractor present on site.  The following year, in 1966, Parliament passed the Public Works Contract Act, which expanded contractors’ rights. The law also required state governments to give contractors advance notice of upcoming projects, thus allowing them to compete for these projects as well as bid competitively. However, this led to price fixing amongst contractors, and soon after, there was an inquiry into corruption among politicians and officials at local levels in order to get contracts awarded.

Commercialization timeline

In India, Ready-mix Concrete Industry is set to grow at a CAGR of around 5.8% from 2017 – 2023. The segment can be sub-segmented into ready mix concrete and other products. India is among the key players in this industry, with its share at 35%. This growth can be attributed to factors such as an increase in per capita income, a growing residential sector, availability of finance and high investments in the construction sector. Furthermore, there is immense scope for expansion due to low penetration levels as compared to developed nations.

Benefits of ready-mix concrete

The perks of using ready-mix concrete are:
  1. Speed to market is another advantage of ready-mix concrete. Unlike traditional masonry, concrete has little or no wait time for curing.
  2. It reduces downtime during construction periods, saving valuable company resources.
  1. There is a lesser chance of mistakes when using ready mix concrete in comparison to traditional masonry since it is easier to read the proportions required for a good mix.
  2. In terms of environmental responsibility, using this product instead of regular mortar can help significantly reduce air pollution.
  1. The ready mix usually features a protective cover that seals out the most harmful emissions during production and delivery.

Future of ready-mix concrete in india

In the face of these challenges, the Ready Mix Concrete industry in India has managed to expand from a size of INR 4585.8 billion in 2011 to INR 5781.3 billion in 2016, registering a Compound Annual Growth Rate (CAGR) of 8.2%. In fact, the country is poised to become one of the top five ready-mix concrete markets globally by 2020. This growth owes its success primarily to increasing demand for rapid infrastructure development and the influx of investments in this sector. With sustained momentum over time and continued regulatory reform, India is primed for accelerated expansion in this sector which can significantly alter its economic trajectory while ushering it into prominence on a global stage.

Conclusion

The Ready-Mix Concrete Industry, while growing in a consistent direction, is changing from what it once was. Though there are many similarities between old and new models, there are key differences. Modernized companies offer many more services than those operating for years, and the need for good design has become crucial to their success. The next twenty years will see even more transformations in this industry as all of these changes play out, but one thing is certain – the future looks bright for concrete production!

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