DRT forecasts first-half recovery in construction material market
Diamond Building Products (DRT) estimates a recovery in the construction-material market in the current half of the year after the rise in agricultural prices, positive impacts on purchasing power in the provincial market, and modern material retailers expanding in different regions providing increased product opportunities.
While the company’s first-quarter overview indicated good market growth, especially in big cities, DRT is confident of 5-per-cent growth in the first six months of 2017, said company director Satid Sudbuntad.
DRT is the manufacturer and distributor of Diamond brand roofing products such as synthetic board, gypsum board and lightweight brick.
One factor supporting the recovery of the construction-materials market is the increased prices of agricultural products, the company says. Prices of sugar cane and rubber have improved, which has a positive impact on the income and purchasing power of consumers in the provinces.
Modern retailers have expanded their branches in various regions, which will benefit the growth of the construction-materials market upcountry, and the government has a policy to inject more money into the system. This is good for stimulating the economy.
An overview of the construction-materials market in the first quarter shows that growth was better than in the same period last year. The growth rate was driven by the upscale market in big cities and provinces where the economy is expanding well. Meanwhile, export markets in neighbouring countries such as Laos continue to grow as well.
Therefore, the company is confident of 5-per-cent growth due to its strong diversity of products (for roofs, walls and floors) and a variety of sales channels, including traditional and modern trade, real-estate projects, and export markets in Asean countries.
"In the first quarter, we maintained our planned growth,” Satid said. “Roof and wall products are good growth products from a gradual market perspective. Better recovery than last year combined with proactive marketing activities to stimulate sales on all sales channels allows us to use almost 100 per cent [of our] production capacity."
He added that the housing-repair market was considered a potential growth market. At present, homeowners experiencing problems cannot find as many skilled artisans as required. DRT has had a team of experienced roofing contractors for housing developers for more than 10 years. They also offer logistics availability that can meet the needs of customers who need to repair their houses. These services will have a positive impact on future revenue growth, the company believes.
