AfriSam warns of margin squeeze for concrete product manufacturers as cost pressures intensify
Concrete product manufacturers (CPMs) in South Africa are facing a tightening margin squeeze, with rising input and transport costs set to place further pressure on already constrained operations.
According to construction materials supplier AfriSam, this environment is forcing manufacturers to re-evaluate how they manage production efficiency, quality control and risk.
While the construction sector has shown early signs of recovery, many CPMs have yet to benefit from increased infrastructure spend. Instead, AfriSam says, their exposure to smaller, interest rate-sensitive projects leaves them vulnerable to market fluctuations.
At the same time, higher fuel prices are driving up transport costs, further eroding profitability.
“Our CPM customers generally operate on very thin margins and their position looks likely to get more difficult. This means there is less room for disruption, breakage or errors in their process and a greater need for continuous monitoring and quality control,” says AfriSam Centre for Product Excellence manager Mike McDonald.
He points out that many manufacturers still rely on broad cost-per-unit metrics which often overlook hidden inefficiencies such as breakages and material wastage. These factors not only impact productivity but can also introduce significant commercial risk if product failures occur after installation.
AfriSam notes that it is increasingly working with CPMs to quantify and reduce these inefficiencies, linking improved data tracking directly to mix design optimisation. By refining material combinations and production processes, the company says, manufacturers can reduce breakages and build more consistent, cost-effective operations.
AfriSam cement manufacturing Gauteng sales manager Adele Wentzel says the complexity of concrete inputs adds another layer of risk, particularly when cost pressures push manufacturers to consider alternative materials.
“From cement, sand and aggregates to fly ash, slag and admixtures, every component must be carefully assessed for compatibility and performance. Substituting materials to reduce costs can introduce significant variability if not properly evaluated,” she explains.
AfriSam says its technical support extends beyond material selection to include production practices such as curing regimes, temperature control and batching accuracy.
In some cases, this involves rethinking traditional approaches, including reducing reliance on energy-intensive steam curing through more advanced cement systems and admixture strategies.
The company also emphasises the importance of real-time monitoring, using tools to track variables such as temperature and humidity, which can fluctuate significantly and impact product quality.
“Even small inconsistencies, like poor curing room control, can have serious consequences for strength development and production timelines,” McDonald notes.
As cost pressures intensify, AfriSam believes closer technical collaboration between suppliers and manufacturers will be critical. In a market where differentiation is increasingly difficult, the ability to balance cost, quality and risk could determine long-term sustainability.
“In this challenging environment, CPMs need trusted partners to help them optimise processes and manage complexity. Those who can do this effectively will be best positioned to remain competitive,” McDonald concludes.
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