Working concrete supply chains provide jobs, wealth and stronger infrastructure. The developing nations of the world need working concrete supply systems to compete in world trade and to raise economic strength.
International development is missing the foundation of successful nation building if they are not focusing on improving concrete supply.
1. Concrete solutions for global supply chains
Concrete is the second most utilized resource in the
world, next to water. Yet it remains underappreciated
within the ranks of economic development initiatives.
Concrete forms the foundation for critical infrastructure
on every continent. Global supply chains for concrete
production are a vast economic engine that produces millions of skilled and low-
skilled jobs and supports much of the world’s wealth. Unfortunately there is a
huge disparity in concrete production capabilities between industrialized and
developing nations. This gap can be reduced by 2025 with the addition of
appropriately scaled technology and incremental support from more advanced
supply chain partners.
For any developing country to become competitive in global trade, it must first
develop the essential infrastructure on which to build success. Sufficient and
reliable supplies of both water and electricity are essential to economic growth.
A satisfactory infrastructure of roads, bridges, ports and airports is necessary to
become a participant in world markets. Without strengthening these projects at
the foundational level, other development challenges cannot effectively be
addressed.
Infrastructure is dependent upon one commodity more than any other –
concrete - along with its supporting supply chain. Without a reliable supply of
consistent quality concrete, roads, bridges and airports are not sustainable.
Water and electrical projects fail prematurely without concrete to increase
service life. Buildings depend upon solid foundations built with quality concrete
to withstand disasters. Homes, particularly in developing nations, rely on
concrete and concrete block to shelter families. Without dependable concrete the
risk of construction failure increases and the world’s poor are impacted at many
levels. A broken concrete supply chain is a hidden contributor to economic
depravity within the countries we target for development assistance. Expanding
the supply chain to include developing nations will yield increased trade, raise
wages and will lower the losses that continue to tax the world’s resources.
We have all seen the devastation that
occurs when structures are built using
sub-standard concrete. The story of a
quarter million people dead from a
relatively modest 2010 earthquake in
Haiti is the story of failed buildings
collapsing on people – buildings that fell
because of a failed concrete supply
chain. Billions of dollars in infrastructure
2. was lost or damaged needlessly due to the lack of good concrete practices. This
impacts the regions scarce commodities and requires that additional billions be
spent in rebuilding the country. If Haiti’s concrete would have been sustainable,
these losses would have been minimal.
If you want a vivid example of the importance of a solid concrete supply chain,
compare the rebuilding activities after the Haiti Earthquake with Japan’s
Earthquake and Tsunami of 2011. By most estimates, within less than 9 months
of the Tsunami in Japan, a large percentage of the damaged structures have
been repaired. By contrast, in Haiti, after two years only about 5% of the debris
has been removed and few permanent replacements have been built. These two
events highlight the supply disparities between industrialized Japan and a
developing country like Haiti.
Why the huge difference? There are many reasons, including Haiti’s
dysfunctional government, a culture of corruption, and a vast population of poor.
It could be argued, however, that Japan’s excellent supply chain for concrete is
the most significant reason. First, buildings, roads, dams, port structures and
bridges were built with quality concrete, the product of a functional and well-
dispersed supply system. Japan’s lesser damaged structures were easier to repair
than in Haiti where their poorly supplied concrete structures required complete
removal and replacement. Over time Japan has built their sustainable
infrastructure to mitigate risk, while Haiti just builds anyway that they can.
Second, it took little time to get the
concrete supply chain up and running
again to produce the materials needed to
repair the infrastructure of Japan. This
functioning concrete system provides a
burgeoning job market, business
opportunities, rising wages and supports
a middle-class.
In Haiti, with only a couple of functioning concrete production companies, finding
quality concrete and a job are major problems. The lack of capacity is
exacerbated by poor sand and gravel resources, a lack of quality control
procedures, transportation restrictions and inadequate engineering. Without
access to the appropriate concrete technology and supply systems, developing
countries like Haiti will continue to build haphazardly. Spent resources will again
return to rubble and the poor will continue to loose the three benefits of a
working concrete supply chain – wages, homes and personal safety.
Within industrialized countries, quality concrete is available from thousands of
concrete production facilities located in almost every community. In developing
3. nations, people resort to mixing concrete on the ground using only shovels, a
process that is a proven failure. The resulting
shovel-mix generally has too much water,
incorrect amounts of sand, rock and cement,
and is poorly blended. As has been seen in
Haiti, Pakistan and elsewhere, poor quality
concrete cannot withstand even a moderate
earthquake and results in massive rescue and
foreign aid efforts.
Imagine the impact on economic opportunity and personal safety within these
developing nations as we help them develop better concrete supply systems.
We can envision a 2025 that will find an empowered workforce with the
technology to manufacture quality concrete.
In that time we will find thousands of
local trading partners within a
functioning concrete supply chain.
In the future there will be new
infrastructure projects using more
sustainable processes. We will find
rising wages and a growing middle
class.
2025 will find developing nations with
the solid foundation upon which to
build their opportunities in the
broader supply chains of the world.
Industrialized concrete supply
systems from around the world have
the skills and technology to share
these opportunities with those who
must improve their own systems. They only need the motivation to join in the
effort. This longstanding challenge to sustainable development will dissolve away
as we focus on applying transformational approaches and solutions to the worlds
poorest concrete supply chains. These are the concrete solutions that are needed
for global economic health.
Prepared by Bruce Christensen
• Director with CementTrust
• General Manager of Cart-Away
1405 NE Alpha Dr.
McMinnville, Oregon 97128
bc@cart-away.com
503-434-4444
www.cementtrust.wordpress.com