Thursday, June 30th, 2022
CECR

Roads And Pavements Sector In 2021 – A Report

 

Mr. Sandeep Mathur
India CE Brand Leader,
CASE India 
www.casece.com/apac/en-in

The sudden hit of COVID 19 pandemic impacted countries and economies all around the world. The pandemic induced lockdown resulted in an accumulation of a lot of projects which impacted their on-time completion and cost as well. Although, now businesses have devised new ways of working amidst the pandemic. The government is also working swiftly to turn the looming economy around by introducing initiatives and announcements for infrastructure and MSME sector. According to Government reports, with an average speed of 29.81 km per day, the construction of national highways during 2020-2021 was the highest ever in the last five years despite the Covid-19 crisis and months of lockdown. The total length of National Highway construction up to February 5, 2021 was 9,242 km.

Adding to the ongoing flow of roads and highways projects, this year’s budget focused immensely on strengthening the infrastructure sector. The government’s effort towards further enhancing the roads and highways projects to 7,400 new projects is a welcome step which will ensure a better year for the infrastructure sector as well as for the construction equipment industry. The multitude of announcements on the highway projects in Tamil Nadu, Kerala, West Bengal and Assam will further give a much-needed boost to the sector. The Minister of Road Transport and Highways Nitin Gadkari has also set the target for 2026 and planned to expand around 60,000 km of National Highways (NHs) in the next five years. Additionally, Ind-Ra and ICRA has revised its outlook on the construction equipment sector to ‘Stable’ from ‘Negative’ following a strong ramp up in volumes.

The Off-Highway Research predicts that the availability of the Covid vaccine is expected to push the recovery rate further in 2021. Sales of road construction equipment will increase by 25 per cent to 76,375 units in 2021 and a further 16 per cent to 88,700 units in 2022. The construction market is forecast to touch 100,300 units in 2023 with a growth of 13 per cent.

Another factor that will add to the growth of the road equipment industry in 2021 is technology. Technological elements like Virtual Reality, AI security and BIM are making a major impact on construction equipment productivity and efficiency. It has become necessary for every construction equipment manufacturer to equip their machines with the latest and advanced technology to make the workflow easy and resourceful. According to McKinsey, the use of innovative technologies is bolstering the construction industry with advancements such as pulsed radar object detection, drones, radio frequency identification (RFID), prefabrication, smart wearables, 3D printing, immersive solutions (VR/AR, Internet of Things (IoT) and smart materials. By harnessing industry 4.0 tools like IoT, AI and automation, processes will see 30 to 50% reduction in machine downtime; 15 – 30% improvement in labor productivity; 10 to 30% increase in throughput; and 10 to 20% decrease in the cost of quality. These advantages are important as full-scale digitization in construction could result in annual savings of between $700 trillion and $1.2 trillion.

With the government focusing on construction and infrastructure activities we’re confident that this year will be great for the CE segment. Keeping all the above initiatives in mind, the outlook for construction and infrastructure seems positive and all these efforts will play an important role in reviving the sector and bringing back the economy to normalcy.

 

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