South Africa’s concrete product manufacturers (CPMs) are under increasing pressure as rising input and transport costs squeeze already thin margins. With many manufacturers reliant on smaller, interest-sensitive projects, the sector faces significant challenges in maintaining profitability and product performance.

Rising costs and market exposure

The cost of raw materials and fuel continues to climb, leaving CPMs with limited relief from current infrastructure spending. Many manufacturers remain exposed to smaller-scale projects, which are highly sensitive to interest rate fluctuations. This market volatility adds to the financial strain, making it essential for CPMs to address inefficiencies and optimise their operations.

Hidden inefficiencies impacting margins

AfriSam highlights that traditional cost-per-unit metrics often fail to capture hidden inefficiencies such as:

• Breakages: Damaged products during handling or transport.
• Material waste: Excessive use of raw materials due to inaccurate batching.
• Inadequate curing: Poor curing practices that compromise product durability.

These inefficiencies not only increase costs but also pose a commercial risk if products fail in service.

Technical solutions for cost and quality

To combat these challenges, AfriSam is working with manufacturers to implement technical solutions that balance cost, quality and risk. Key strategies include:

1. Mix design optimisation: Refining concrete mixes to reduce material waste and improve performance.
2. Advanced cement systems and admixtures: Reducing reliance on energy-intensive steam curing by using innovative materials.
3. Improved curing practices: Adopting revised curing regimes and temperature control to enhance product consistency.
4. Real-time monitoring: Tracking variables such as temperature, humidity and batching accuracy to ensure quality control.

These measures not only improve efficiency but also help manufacturers maintain competitiveness in a challenging market.

The importance of supplier collaboration

AfriSam emphasises that closer technical partnerships between suppliers and CPMs are critical for long-term sustainability. By working together, manufacturers can access the expertise and resources needed to optimise their processes and reduce costs without compromising on quality.

A path to sustainability

Concrete product manufacturers that adopt rigorous monitoring, smarter mix designs, and closer supplier partnerships will be best positioned to weather the current margin squeeze. These strategies not only protect profitability but also ensure the delivery of high-quality, durable products.