Concrete components on the rise: sales declines expected for 2023

The precast concrete industry in Baden-Württemberg could achieve sales of EUR 1.1 billion in 2022. This corresponds to an increase of around 13 percent compared with the same period of the previous year. However, the growth must be viewed against the background of price increases, as the industry recorded volume declines in many product segments. This was announced by Friedrich Gebhart, President of the Fachverband Beton- und Fertigteilwerke Baden-Württemberg, Ostfildern, at the press briefing of the 67th BetonTage in Ulm. In view of the gloomy economy, sales are expected to decline by around 5 percent in the current year.

Decline in orders clouds construction activity
Orders in the main construction sector fell by 6.5 percent overall in Baden-Württemberg in 2022. This mainly affected building construction (-18 percent). Both commercial and public-sector building construction recorded declines in orders (-26.4 percent and -29.3 percent respectively). Residential construction stagnated at +0.3 percent. The price increases and the gloomy economic situation in the construction industry also made themselves felt in the precast concrete industry. Despite an increase in sales, individual segments had to contend with volume declines. For example, sales of structural precast elements such as beams, columns and trusses increased by 13 percent, but volumes declined by 4 percent. Sales of large-format ceilings increased by 18 percent, while volume declined by -6 percent. Sales of large-format wall components increased by 4 percent, while volumes also decreased by 4 percent. Precast concrete products for road construction, gardening and landscaping recorded a 19 percent increase in sales, while volumes rose by only 5 percent.

Manufacturers of concrete and reinforced concrete pipes increased their sales by 10 percent, while volumes decreased by 1 percent. They benefited from rising orders in civil engineering overall (+12 percent) and the willingness of the public sector to invest (+25.3 percent).

In view of the already declining building permits and incoming orders, the association expects a 5 percent drop in sales for the current year.

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