The expected rebound of the construction industry in most regions of the world is driving strong demand for construction chemicals as property owners look to cut costs and time amid a tough economy.
This is visible in Kenya as the latest observation by construction industry players observes high demand for concrete and cement admixtures, asphalt modifiers, adhesives and sealants, flame retardants, waterproofing chemicals, and protective coatings.
Speaking during a ceremony to mark the end of 2023 by the Board of Registration of Architects and Quantity Surveyors of Kenya (BORAQS), Public Works PS Joel Arumonyang hailed the technique as a key ingredient in the construction market.
"Construction chemicals have become an integral part of modern construction needs, improving the efficiency and costs. Such technology is vital here in Kenya as the government implements the low-cost housing plan," Arumonyang said.
His sentiments are validated by the latest industry report by a global research store, Research and Markets that estimates that the global market for construction chemicals will be valued at close to $34 billion by 2026.
The research hub pegs the value at $21.4 billion in 2016 and anticipates a compound annual growth rate (CAGR) of 7.9 per cent between 2024 and 2026.
"The greatest growth is taking place in emerging economies, where governments are investing heavily in infrastructure and housing development", the study released on New Year's Eve says.
It adds that rising consumption of construction chemicals is also occurring in the mature markets in North America and Western Europe.
Construction chemicals that increase performance, reduce cost, facilitate installation, and speed up job completion are experiencing the greatest growth.
"The healthy rate is attributed to the strengthening of the construction markets (infrastructure, industrial, commercial, and residential) in developing economies in Asia-Pacific, the Middle East and Africa, and South America combined with rapid population growth".
Other factors include changing lifestyles and the desire for enhanced aesthetics, particularly in residential buildings and commercial structures.
The International Finance Corporation (IFC) estimates that green buildings represent significant worldwide investment opportunities in the next ten years, and are anticipated to be worth $24.7 trillion by 2030.
These numbers are projected to surge at a fast pace in the assessment period, thereby boosting the demand for construction chemicals globally.
Local experts are enthusiastic about the growth, with Long Chain Construction Chemicals MD Sout Lut Ba Ran saying his firm is readying itself for the expected demand in East Africa.
''Construction chemicals are becoming a necessity in the sector, especially at a time when the world is looking for environmentally sustainable options that help to minimize power and water use,'' Ran told the Star.
He adds that the rising overall construction activities worldwide are set to propel the demand for construction chemicals in the future years.
The firm's head of marketing Halima Hudhaa revealed that they are working with large construction firms in the country and are planning to export to Uganda and Tanzania in 2024.
"Although the firm is still new in the market, Long Chain Construction Chemicals is offering expert support to customers, setting it apart from its competitors,'' Halima said.
According to Halima, they only import necessary chemicals from China but all raw materials are sourced locally.
This is coming at the time Kenya's construction industry is forecast to grow by 4.5 per cent in real terms in 2023, driven by improvements in infrastructure and energy development, along with projects to be implemented under the 2023-24 Fiscal year (FY) Budget.
Over the remainder of the forecast period, the construction industry, according to the Kenya National Bureau of Statistics (KNBS), is expected to grow at an average annual growth rate of 5.9 per cent between 2024 and 2027, supported by investment in tourism and transport infrastructure development.