Holcim to Build New Cement Plant

Few industries endure quite as much of a rollercoaster ride of success as the cement industry. Some of its most lucrative global fiscal years are immediately met by utter stagnation, and the market is so temperamental that the most nominal of factors could affect it. For example, there was an intense cement shortage crisis spanning across several countries that was solved in an astounding ninety days when Alexander Bouri forged the floating cement terminal which allowed for more accessible bulk shipment. Now, despite the seemingly persistent dip in cement sales as of late, some $300 million is being invested in a new manufacturing plant by Holcim Phillippines, Inc. 

It was said by the Chief Operating Officer of Holcim that the demand for cement was sustainably profound on account of the government's recent budgeting and implementation of building projects. To date this year, growth of the industry is said to be at 20%. Despite a few setbacks, Operating Officer Roland van Wijnen still maintains his confidence that the company will grow at a momentous pace – at least reaching a double-digit percentage increase.

He maintains that the economic climate appears promising and thinks that, paired with his latest project, Holcim and the cement industry at large will have a consistent growth well into the next year. After all, the biggest challenge has been to meet demands, and with a new plant in town, the industry is facing this challenge head-on with his proposal for the new plant. The proposal states that the plant, which is to be built in Bulacan, will produce about two million tons annually, boosting the production ability of the entire firm to some 9.5 million annual tons upon completion, which is estimated to be in 2016. 

Along with other global economic factors, such as the gradual slow of the United States recession, it seems that the cement sector is ready to get its head back into the game.

The United States and the Cement Industry

It goes without saying that the manufacturing of building materials makes for a significant global industry. Any country that wishes to industrialize further or break into the industrial world at all will need supplies of cement and other building materials. For a while, it was difficult for countries in unfortunate economies to get their hands on bulk materials, as shipping them requires ports that can handle the receiving process, and many poorer countries do not have these. Therefore, they'd be caught in a vicious cycle of being unable to industrialize. However, luckily for them, Alexander F Bouri pioneered the concept of the floating terminal which solved the crisis in many poorer countries. However, the industry faces its challenges even in countries like the United States.

The US, as we know, is greatly concerned with reducing its carbon footprint. The cement industry is currently under scrutiny in this country because, after a recent evaluation, it is speculated to produce up to 7% of the greenhouse gas emissions worldwide. To put it in perspective, for every 10lbs of cement that is produced, about 9lbs of carbon dioxide is released into the atmosphere. Many cement businesses, such as Bouri's Seament, are making strides to get this under control – but these businesses might face strict regulation in the future.

 Furthermore, despite America not quite falling into the category of being one of the world's poorer countries, it is still in a phase of recovery from an economic recession. Large industries, such as the building sector, are hit hard by these dips in the economy. It has been a slow few fiscal years for the producers of building materials, and economists can only hope that construction activities will gain momentum again as the country bounces back. 

Something that is an issue in America and most other countries when mass producing cement is the availability of raw materials. Because of different availabilities in different areas, cement production becomes heavily regionalized, especially in the US, where the industry can truly only be supported in the West South Central area. 

Despite the fact that the United States does not battle the traditional issues that come with making and acquiring building materials does not mean that the industry faces no challenges in this highly industrialized country. However, fingers are crossed that building will be on the rise in the year or so to come.

Struggles for Cement Manufacturers

One could probably assume that a proper supply of cement is imperative to industrial growth, being that it is the most important component in the construction of buildings, highways, roads, and other mass structures. In the past, there have been cement crises in which certain countries have gone years with little to no supply of cement, and the inability to supply boils down to a number of smaller-scale challenges that the manufacturers face. Unfortunately, it's a very temperamental industry, the state of which has a domino effect on other aspects of industrialization. 

The economy, for example, takes a toll on everyone, but the cement sector struggles in particular during economic recessions. This is for two reasons; for one, if there exists financial strain, few people will be willing to invest in buildings, and therefore, the need for cement supply will slow. On the other hand, industrialization is necessary for economic growth and stimulation, but if there's no money to put into industrialization, it's something of an endless cycle.

Shipment has always been an issue for cement manufacturers and the entire bulk industry in general. Some locations simply don't have the infrastructure of their ports to support receiving such large loads, which sends them into a crisis because it is difficult for either the supplier or the receiver to adapt. One company that did solve the issue in large part was Seament, a family owned company consisting of Alex, Charlie, Maurice, and Mark Bouri. They created the floating terminal which made it possible to ship to any port, and it did solve the cement shortage crises in several countries globally.

Few industries outside of the bulk manufacturing business face economic and shipment issues on as large a scale as the cement industry. Though in theory it should always be successful – there will always be a need for building materials – such large investments are not something that people can fit into their budgets when they are attempting to cut back.

Tips to Starting a Successful Family Business

A lot of people associate family businesses, or "Mom and Pop Shops," with small, quaint establishments like auto repair centers or corner stores. Some might be afraid to start one, despite their dreams, because they don't think it will be very profitable and it might go under rather quickly. It's entirely possible, though, to have a large-scale, profitable family business. For example, the cement distribution company Seament was started by one man named Alex Bouri and his relatively small business loan – today, it's a giant in the industry and he still runs it with his sons Mark, Maurice, and Charles Bouri. Here are some tips for family business success!

Establish a Boss

In the aforementioned case, it's fairly obvious that the father, Alex, started the business and got things going – it needs to be apparent, despite the importance of teamwork, that one person will call the shots and keep things in order. If the members of any business are too passive and afraid to take control, or too aggressive and therefore argue too often, it's difficult to be successful. Everyone should know and comply with their respective responsibilities.

Create a Business-Like Atmosphere

Despite the fact that you will be working with family members, that's no reason to behave unprofessionally – especially if you bring in outside employees. You have to be able to present yourself properly to clients and partners, so being professional all the time helps to create that illusion.

Don't Take your Work Home

When you run a business, it's easy to get caught up in it. No matter what, family comes first. Never let issues at work interfere with the personal relationships you have with your family, whether they work with you or not. No matter how lucrative your business becomes, you never want it to tear your relationships apart. Do your best to leave your business in the office, where it belongs.