Pre-cast concrete refers to concrete components that are cast and cured in a controlled factory environment and then transported to the construction site for installation. This method provides superior quality control compared to traditional in-situ concrete, as the components are manufactured under stringent conditions, resulting in consistent strength and precision.
- In the UAE, the precast products are generally classified in to three main categories namely structural precast products, architectural precast products and miscellaneous precast products. The precast market in the UAE is fragmented and highly unstructured with presence of more than 30 players offering similar kind of products
- The precast market in UAE, which is proportionate to the construction spend in the country and is forecasted to reach USD 0.9 4 billion in 2024, on the back of growing demand of precast elements owing to its superior quality, durability, ability to compress project schedule
- Precast manufacturers in the UAE enjoys a healthy margin of 15–20%, with raw materials accounting for majority of the cost (~60%) followed by labor costs (~20%). Precast market is highly unstructured with presence of many players in the UAE, however, only a handful (8–9) players are approved by various government entities, thus creating opportunity for the new entrant to capture a pie of the government projects provided they
- The growth of the precast market in the UAE is expected to be driven by growing government adoption of precast elements, rapid urbanization, demand for sustainability and durable solutions. Precast solutions are expensive in comparison to other applications, however, considering economies of scale, precast products are cost effective as compared to in-cast concrete methods. Moreover, precast construction takes less time to complete along with compressing project schedules, reducing site disruption and reducing safety concerns
- Considering the market dynamics, growing demand, ease of production, skillsets and synergies of client, the focus should be on producing miscellaneous products such as culverts, troughs, trenches, drain covers etc. apart from focusing on key projects such as villas, warehousing, labor camps, porter cabins and O&G. client should focus on obtaining certifications from NPCA and ISO in order to get approved by the government entities such as RTA, DEWA, SEWA, FEWA etc. as currently there are only a handful players approved by these agencies
Table of Content:
Project kick off
- Confirm detailed plan, roles and responsibilities and key milestones
- Use our knowledge of similar projects to identify likely hurdles and obstacles the project must overcome, and put in place plans to deal with those hurdles
- Identify key stakeholders in the proposition, their interests, incentives and expectations for this project
Client input & assumptions
- Conduct a workshop with client senior management to gather a better understanding of:
- Hypothesis of the perceived top players in the market
- Any research conducted so far by the client
GCG Knowledge Bank, Projects search & filtering
- Conduct preliminary search of GCG Knowledge Bank and GCG Projects to secure the following information for the projects market:
- Macroeconomic data
- Sector specific project data for UAE
- Market trends and developments
Key Assumptions & Sources of Information
- The client will be asked to provide any market and research data that could be of benefit to the engagement
- The client will help with any available data to support the engagement
- GCG internal resources including existing reports and databases will be exhausted prior to seeking secondary sources
- Where necessary, we will research secondary sources including government websites, publications, white papers, private company websites and public databases will be reviewed to complement GCG internal resources to support the engagement
Macroeconomic Analysis
- GDP & demographic indicator review & analysis
- Review, analyze, and forecast macroeconomic indicators for the UAE. Key indicators under review to include:
- Nominal GDP and real GDP growth
- Inflation
- GDP breakdown
- Review, analyze, and forecast demographic indicators including:
- Population size and structure
- Population growth rate
- Analyze economic drivers and risks that are affecting the Pre-cast concrete sub-sector as a whole
Pre-cast Concrete Related Products (Supply side analysis)
- Review and analyze trade statistics for UAE including, but not limited to:
- Import and export data
- HS code level analysis of the trade statistics (by category)
- Countries of origin of imports and destination of exports
- DEWA and other authority criteria’s and specifications
- Contact customs department in UAE to collect the data on cargo volume in TEU/tonnes for break bulk
- Based on the trade statistics, develop a size of the potential total Pre-cast concrete sub-sector from a trade vantage point
Profile of the main competitors in the UAE-5–6 major players
- Analyze the market structure and segments of the main competitors
- Analyze the pricing structure at each level
- Estimate the current market size of Pre-cast concrete sub-sector in UAE
- Storage, transportation, maintenance and handling requirements for the business
- Develop a quantifiable market attractive index to assess the rivalry of the proposed project using various essential indicators such as but limited to market size & market growth, pricing trend, intensity of competition, and market entry risk
- Adopt an appropriate methodology for forecasting the expected demand of Pre-cast concrete sub-sector for the UAE market for the coming 10 years
- Conduct research on identified competitive set for initial profile preparation. Formulate and execute a competitor survey, to obtain/ validate:
- Year of establishment, Number of employees, Geographic coverage, Distribution model
- Sector focus, Key clients, as may be available
- Importance of certifications
- Perceived market share
- Key market trends and market outlook including challenges
Customer Interviews (Demand side analysis)
- Customer identification
- Co-develop with the client a list of targeted customers that the client will be focusing on in the future
- The list will include up to 25 target companies
- Glasgow Research & Consulting will interview a minimum of 15 customers
- Define the market demand drivers of the market
- The focus of the interviews will be on (this list is not exhaustive):
- Who is your service provider (give names), what services do you use from them
- How much are you willing to pay for the various application/ finish type (subject to willingness to disclose)
- How satisfied are you with their service
- Why did you choose them
- Develop a ranking model based on customer feedback on the identified companies in UAE
Additional Analysis
- Compound walls, Road separation barriers and other possible categories
- Growth in these two segments and other categories
- Service providers offering these
- Price points and volumes
Opportunity Assessment
- Market Assessment
- Based on the interviews and data collected from previous phases, GCG will work with the client on developing the market size assumptions.
- Collate and analyze the findings from the competitor survey to develop a Porter’s Five Forces analysis, to summarize the competitive landscape
- Develop a SWOT analysis of the Client relative to the competitive landscape in the region
- The analysis will then be used to develop a high-level strategic recommendation for client with areas to be covered, but not limited to:
- Determine the addressable market opportunity for a new entrant
- Critical success factors to replace competition and gain sustainable market share in the target markets
- Proposed prices and pricing strategy
- Margin structure
- Details of the products / recommended product mix
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