The development of this industry is aligned with the expected growth of the construction sector, one of the engines of the Dominican economy.
SANTO DOMINGO.-.-, The production capacity of the local cement industry has allowed it to respond to the rapid growth of the construction sector, one of the engines of the national economy and the post-pandemic recovery.
The latest report from the Central Bank indicates that the construction sector registered a year-on-year growth (January-December) of 23.4%, placing it among the three sectors that contribute most to the country's economic growth and recovery, along with tourism services (39.5%) and manufacturing in free zones (20.3%).
According to information provided by the Dominican Association of Portland Cement Producers (Adocem), this expansion of the construction sector was reflected in the increase in cement production, which reached 6.5 million tons versus the 5.17 million tons produced in 2020. Domestic cement consumption, meanwhile, registered a total of 5.5 million tons, an amount approximately 26% higher than the previous year.
“While the industry reflects a positive balance in terms of volume, the last two years have been truly challenging, as we have had to face the challenge of ensuring the continuity of our operations and the jobs of our people, given the problems in the supply chain and the continuous increase in the cost of almost all of our essential inputs (electricity, fuel, spare parts, freight, etc.), with increases that are in the order of 40% to 100%,” stated Eng. Felix Gonzalez, president of Adocem.
This significant increase in the local market was promptly and efficiently covered by the national industry, which has an installed capacity that currently reaches 7.9 million tons. This has contributed to the construction sector growing at an average rate of 9.5% annually over the last decade, and has ensured the country's supply of the product in the face of the speculative effects of international dynamics that other cement-importing countries have had to confront.
It is also worth highlighting the increase in cement exports, which grew by 25.9% last year compared to 2020.
ADOCEM President Félix González also assured that the expectations for strengthening remain for 2022, so the industry has continued preparing to supply local demand and increase its installed capacity.
"The capacity of the national cement industry has contributed to meeting local demand, exporting, and maintaining stability in this sector, which is reflected in stable and sustainable price levels. This is the optimal way to guarantee a healthy flow of investment in the construction sector, the cement industry, and the country in general, and to maintain our position as the most competitive in the region," added Félix González.
According to an analysis carried out by the economic consulting firm DASA, based on the Direct Cost Index for Housing Construction published by the ONE, it is highlighted that from November 2020 to November 2021 cement is one of the construction inputs with the lowest price increase during the last year (4.5%), despite the fact that production costs have increased by more than 40%.
On the other hand, a study of the impact of cement in buildings carried out by the National University Pedro Henríquez Ureña (UNPHU) reveals that cement only represents on average 9.4% of the total cost of a project.
