The International Market for Building Materials - Essay Example

In regards to concrete according to the American minerals’ commodity summary, it is concrete is used for more building structures than any other man-made material and it is the case that in 2006 more than 7.5 cubic kilometers of concrete are made in a given year which would reprehend a significant source for the construction of major projects. Concrete is often used because of its highly flexible nature which can more or less be molded into any number of different shapes yet still offers a high degree of strength. In the CEMEX context, it is the case that the company had its origins in concrete which still serves as a cornerstone of the company’s product offering.

            The next major product that will be examined will be steel. This product has been used as a major source of building materials since ancient times when the product was used as wood fasteners. According to the world steel association (2008), it is the case that three years ago the global production in steel amounted to approximately 1,350 million metric tons of which approximately 36% was produced in the Chinese market. The benefit to steel as a building material is the high strength that the product can maintain insofar as the product itself is very strong. Secondly, it is the case that the product is very adaptable insofar as it can be forged into many different shapes whilst still retaining its strength. Lastly, it is the case that the product is very good at working in conjunction with other building materials insofar as one can pair a steel frame inside a concrete mold to give an added level of strength. While CEMEX from the case does not appear to offer a foundry, it remains that the company relies heavily on steel as part of its product line.

            According to McKeever and Phelps (1994) in home construction in the North American context ‘wood’ remains one of the most common building materials particularly for framing. While it is the case that wood has been a popular building material since the dawn of time, in the modern context it is often chosen for its relatively low cost, its ease of use (insofar as it is easy to join to pieces) it has a great deal of flexibility and if treated properly is likely to last a very long time. As mentioned earlier it is the case that its mass use is most common in North America it remains very popular globally however it is difficult to determine exactly how much of it is used in the international context as a great deal of wood that is exported is used for the purpose outside of construction.

            In terms of global consumption of these goods as highlighted earlier in the steel section, China (And East Asia in general) is a major target destination for a lot of building materials owing to a major economic boom which has translated to a major building boom as well. Secondly, it is the case that great deals of building materials are directed to established markets such as North America and Europe.  

Any destination with an economic boom is likely to ace a building boom as well so in future years people can expect a lot of products to be directed towards the BRIC nations (Brazil, Russia, India, and China.). How CEMEX can capitalize on these market trends is the fact that the company might consider a process of vertical integration insofar as the company might want to consider investing in logging and wood cutting operations as a means of capitalizing on the booming North American housing market. In the case of steel, while it is the case that the company has strategic alliances with major steel producers, they might want to consider the potential for acquiring a foundry. As the case identifies, “CEMEX has been praised for its ability to successfully integrate its acquisitions.” This indicates that these processes may not be too far out of the company’s reach.