Many factories specializing in construction and building materials have closed their doors and those factories have moved offshore or to Mexico. It’s amazing the monumental loss in the last 2-decades, and the industry specialists see this as continuing – for several reasons. Let’s talk.
Not long ago, an acquaintance of mine who sells building materials explained to me that many of the building supplies made in China are every bit as good as those made in the US, but I was skeptical. He told me the reason was because US companies had moved their factories over Home Improvement Contractor Salary there to get away from hostile unions, over regulation, employment lawsuits, and to save costs. Today, he said those factories are run by American companies, by American standards and they carry American Brand Names – thus, they are closely watching the quality like a hawk.
A recent report by WMI – World Market Intelligence indicates that not only are building materials being made in China, but they are also being bought there due to the massive growth in constructions. WMI stated; “The value of the Subcontractor Work industry in China has risen from US$ 506,568 million in 2005 to US$ 990,203 million in 2009.” And they suggest that it will continue to grow, outpacing the US even after the recovery takes hold here. Indeed, I recommend this report for anyone who is serious about the Chinese construction industry – it’s a real eye-opener, and there is a lot of opportunity and growth there.
You see the Chinese are building schools, bridges, roads, government buildings, military bases, power plants, dams, and urbanizing the nation at record pace. Yes, everyone knows of the massive corruption in the construction sector in China, and that is a hump they will have to overcome. And in the US we know all too well that we have had to watch the building materials coming from China. Case in point was the toxic chemicals in the Drywall which came to the US during our last big housing boom.
Now then, these factors along with the slow economic recovery in this sector means there is opportunity in China for the building material industry, and it also means cheaper (less-expensive) building materials which will help keep things affordable in the US as our recovery in the industry takes hold. Expect slow growth in the building sector in 2011 and continued growth moving into 2012. Please consider all this, and stay informed – use this information wisely. Think on it.
Construction