How is the building materials industry changing?

How is the building materials industry changing?

In 2016-2021, the volume of producing construction materials increased in Uzbekistan. Demand for construction materials is growing not only in domestic but also in world markets.

New directions have been developed in the field of construction materials, which have attracted a large number of foreign investors. Due to the development trends of the leading foreign construction industry, special attention was paid to the development of new building materials and innovation in the industry, said Shohruh Bobojonov, a researcher at the Center for Economic Research and Reforms.

It is known that in recent years, huge creative and construction work is being carried out in our country. Construction work is in full swing in cities and villages. At the same time, the demand for energy-saving, import-substituting, innovative and new types of construction materials is growing year by year. In particular, the demand for construction materials is growing not only in domestic but also in world markets. In line with this high domestic demand, the volume of production of construction materials in our country has increased significantly in recent years. In addition, in order to further expand the production of building materials, special attention is paid to the implementation of major investment projects in this area.

How many types of construction materials are producing in our country?

Positive results are being achieved in the field of diversification of products and expansion of production volumes, processing of local raw materials. If we look at the latest figures, in 2020, enterprises in the field of construction materials produced products worth a total of 22 trillion soums. In 2016, this figure amounted to 6.8 trillion soums, a growth rate of 3.2 times.

In particular, by 2020, 12.5 million tons of cement (an increase of 45%), 20.2 mln. sq.m. construction window (an increase of 59.4%), 17.3 mln. sq.m. ceramic tiles (1.8 times), 61 mln. sq.m. drywall (2.1 times), 890 thousand tons of dry construction mix (4.8 times increase), 340 thousand tons of quicklime (13.7% increase), 2000 rolls of wallpaper (89 times increase). Currently, there are about 12 and a half thousand enterprises producing construction materials in our country. In previous years, 120 types of construction materials were produced, but today their number has exceeded 180.

There have been major shifts in the liberalization of the foreign exchange market, expansion of cooperation with other countries and open policy, wide access to domestic and foreign investors, creation of a number of benefits and conditions, state support and development of the banking sector.

In particular, from 2016 to 2021, $7,386 million was spent on 7,385 investment projects:

- $360.2 million for a total of 668 projects in 2016;

- $560.0 million for a total of 690 projects in 2017;

- $749.6 million for a total of 686 projects in 2018;

- $1,332.6 million for a total of 866 projects in 2019;

- In 2020, a total of 761 projects worth $1,820.0 million.

According to the approved Investment Program for 2021, it is planned to disburse $1,701.1 million for 790 large promising projects in the field of construction materials worth $2,130.0 million. In addition, investment projects are being implemented in the framework of socio-economic development programs of the regions.

Construction materials produced in Uzbekistan are being exported to the world market

Demand for construction materials produced in our country is growing not only in domestic but also in world markets. In particular, the export of products such as drywall, heat-insulating glass wool, quicklime, ceramic tiles, gypsum increasing year by year.

According to the analysis of 2016, exports amounted to $55.3 million, while last year the figure reached $257 million (an increase of 4.6 times). In 2021, it is planned to release $270 million worth of construction materials on the world market.

In particular, $28.9 million worth of cement, $19 million worth of aluminum and PVC profiles, $14.2 million worth of ceramic tiles, $12.8 million worth of dry mixes, $7.7 million worth of quicklime, $7.1 million worth of drywall, $3.5 million worth of construction materials such as wallpaper.

Exported to traditional markets Kazakhstan (ceramic tiles, quicklime, drywall, heat-insulating glass wool (fiberglass) and other products), Kyrgyzstan (ceramic tiles, decorative glass, quicklime and other products), Turkmenistan (drywall, gypsum, lenoleum, varnish), Afghanistan (drywall, plaster, cans and bottles, paper products).

In 2020, 45 types of construction materials worth $467.6 million were imported, which is a decrease of 14.2% compared to 2019.

In accordance with the decision of the President of the Republic of Uzbekistan (dated December 22, 2016 No PP-2692 "On additional measures to accelerate the renewal of obsolete and obsolete equipment of industrial enterprises, as well as reduce production costs"), in 2020 it was planned to replace 27 obsolete equipment worth $208.5 million with modern energy-saving equipment. According to preliminary data, in January-December 2020, 20 pieces of equipment worth $221.8 million were upgraded and replaced at the enterprises of the association.

In 2021, the adoption of general technical regulations on the safety of stone, gypsum and ceramic products, safety requirements for reinforced concrete, concrete structures, safety requirements for ceramic sanitary ware and special technical regulations on the safety of polymers and their products planned to be done.

At the same time, 340 international standards for the production of building materials in 2019 and 626 in 2020 were adopted in order to introduce a new type of quality and safe construction materials. Thus, the construction materials industry will remain one of the "drivers" of the economy in the next decade.

Conclusion

In conclusion, in recent years, a lot of work has been done to reform the industry, increase the efficiency and capacity of enterprises. Critically analyzing the activities of each enterprise in the industry, a number of measures are being taken to improve the quality of products, reduce costs through the production of energy-efficient and innovative building materials. The use of "digital technologies" in enterprises, the level of automation in life-threatening processes has increased. New directions have been developed in the field of construction materials, which have attracted a large number of foreign investors. Due to the development trends of the construction industry in the leading foreign countries, special attention was paid to the development of new building materials in the industry.

Also, over the past years, the construction materials industry in our country has become a modern, modernized, technically and technologically equipped, energy-saving, economically stable and competitive industry. This is evidenced that significant achieved results were recognized by many foreign specialists and experts.

Center for Economic Research and Reforms

Leading Researcher, Shakhrukh Bobojonov

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