The high volatility of the prices of the inputs that affect construction, the trend in the world price of oil and the policies to reverse inflation in international markets indicate that the industry will suffer.
In a lunch with media representatives, the Dominican Association of Portland Cement Producers (Adocem) detailed the behavior of the industry and the trends for next year, given the international context.
Félix González, president of Adocem, spoke of the impact of the pandemic and the timely response of the Government that led to a rapid recovery of the economy of more than 12% in 2021, and of construction by 23.4%. He said, however, that the rise in the prices of essential inputs (fuels and electricity) represent 60% of the variable costs of the industry and both have increased. In 2021, he said, the growth was sustainable and the dynamics of construction was reflected in the production of cement in relation to 2020. In 2021, 6.5 million tons were produced and in the previous year 1.5 million. Haiti, he indicated, is the main Dominican cement exporting country and is facing political instability that has caused it to drop from 25% to 12.3 (US$71 million) last year. González maintained, however, the commitment to identify opportunities and overcome challenges to collaborate closely with the progress and development of the country.
The executive director of Adocem, Julissa Báez, explained industry data and showed the entity’s Board of Directors that last year it celebrated its 41st anniversary. She said that Adocem is made up of the companies Cemex, Argos, Cementos Santo Domingo, Cementos Cibao, and Panam. The economist Roberto Despradel stressed that the economic cycle has a lot to do with the growth of construction, and, unfortunately, we are in a time of rising interest rates, “and that means that the construction sector is going to resent”.
INPUTS Costs go up
The economist Roberto Despradel, stated during his speech, the behavior of the prices of inputs, of the construction industry, of inflation and of the interest rate, both in the United States, as well as in Europe and in the DR. The country, he said, is the one that reflects the least increase in cement