Building Materials 

The global downturn in the building and construction sector has had a major impact on industry players. Factors at play include low global steel prices, a weak domestic market, excess inventory and production cuts.

Kevin Leighton

Kevin Leighton

Sector Leader, Building Materials

+61 2 9335 7644

The current outlook for steel and steel-making raw materials is mixed. In the short term, global steel production and consumption is forecast to decline because of the global economic downturn.


However, over the medium term, the outlook for steel and steel-making raw materials is positive, being underpinned by China and other emerging economies’ ongoing industrialisation.


The Australian Government's $42 billion National Building Plan (Nation Building – Economic Stimulus Plan) was in direct response to the severe global recession to stimulate economic growth in 2009 and 2010. A boost in infrastructure activity will help drive recovery in this sector.


In response to climate change, the creation of buildings and infrastructure that minimises the impact on the environment will drive fundamental changes and investment in emissions abatement programs will be critical in response to the introduction of an Australian emissions trading scheme.


Further consolidation and divestment is expected in the Building Materials sector globally as companies look to raise capital and refocus on core business activity.


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  • reporting and regulation
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  • R&D concessions and environment incentives
  • demographic analysis
  • emerging market companies
  • evolving distribution channels
  • private equity investment
  • improving operational efficiencies
  • market entry and expansion
  • business operating model structure
  • supply chain optimisation.

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