23 November 2015

Cement and Concrete Industry: Multiplier Effect on the Economy and their Contribution to a Low Carbon Economy

Cement and Concrete Industry: Multiplier Effect on the Economy and their Contribution to a Low Carbon Economy

On 19 November, The Concrete Initiative launched the results of a study by consulting group Le Bipe, focusing on the multiplier effect of the cement and concrete industry on Europe's economy.  The study clearly concludes that this inportant industry contributes to local growth and jobs in a low carbon economy.  in fact, for every € generated in this sector, €2.8 are generated elsewhere in the economy. Here you will find a brief summary of the results of this study as well as adirect link to the study itself.
A strong contribution to the European economy:
  • In 2012, the Cement and Concrete Industry directly generated €20bn in value added and 384 thousand jobs across the EU28. For the CEMBUREAU region, the direct value added is €22bn and the number of direct jobs is 413 thousand.
  • Through its purchases and the spending of its direct and indirect employees, the industry generates a total value added of €56bn in the EU28 and generates over 1.08 million jobs. In the CEMBUREAU region, the total value added is €60bn with 1.15 million jobs created.
  • This corresponds to a multiplier effect of 2.8. This means that, in the EU28, for each €1 of value added generated in the Cement and Concrete Industry, €2.8 are generated in the overall economy.  A similar effect has also been recorded for the CEMBUREAU region.
  • The concrete and cement industry is a strong contributor to the local economy. Increased exports of cement products that are produced in the EU 28/CEMBUREAU region and exported outside this area have maintained production capacity in Europe. Exports are taken into account in the calculation of the multiplier effect since they contribute to the local economy and jobs.
  • Although already significant, this multiplier effect only takes into account contributions in the upstream value chain. Hence, the value added at the construction stage of concrete – the work of contractors, builders, concrete workers, carpenters, joiners, finishers, etc. is not quantitatively taken into account. This downstream contribution is illustrated in this study through the low carbon applications offered by concrete.
An essential material in the low carbon economy
  • The cement industry has made efforts to reduce its carbon footprint at the production stage: specific emissions related to the cement production process have been reduced by 13% between 1990 and 2013.
  • Cement and concrete contribute to the circular economy, notably through the use of recycled materials and waste as a fuels in their production processes
  • Thanks to the properties of concrete, the industry contributes to a low carbon economy in Europe through a variety of applications:
    • Sustainable Agriculture
    • Infrastructure
    • Energy and Energy efficiency
    • Sustainable Construction
  • Concrete is 100% recyclable thus ensuring an optimal use of raw materials
The full study can be downloaded from here

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