Precast makes the grade on “spend management” scale

Sources: SpendEdge, London; CP staff

A new report, “Global Precast Construction Category – Procurement Market Intelligence,” documents how public and private sector buyers are increasingly wise to manufactured-concrete components’ low lead times, assurance of consistent quality, higher volume discounts, low labor requirements, and conformity to sustainability goals. Such advantages are accelerating the spend growth momentum for the precast market, according to global procurement advisor SpendEdge.

The construction industry is heavily dependent on raw materials, the report notes, while knowledge of key factors that influence precast concrete material prices guides construction buyers to devise a cost-efficient and optimal supply resource. SpendEdge sees the following factors driving a global category spend for precast concrete and construction methods: Lower production expenditures, plus components’ strong seismic resistance, excellent thermal performance, and low noise transmission.

“Adopting a regional sourcing strategy will reduce the lead times that otherwise becomes a major challenge while procuring precast concrete from distant sources,” says SpendEdge procurement expert Angad Singh. The Global Precast Construction report, he adds, will help buyers understand the spend potential within the precast construction market; compare pricing models; plus, analyze the cost and volume drivers impacting pricing, category management objectives, and supplier selection criteria. —