ERMCO News - 21 November 2015

Latest updates from the European Ready Mixed Concrete Organization


Welcome to the 21 Nov 2015 issue of ERMCO News.

In this edition:

• Multiplier Effect of the Cement and Concrete Industry
• Concrete Dialogue 2015: Commissioner Karmenu Vella’s Opening Speech

Multiplier Effect of the Cement and Concrete Industry

Written by Andrea Vanni on 20 Nov&11b20p;2015

1=2.8

Starting with this original equation Arbataz Shams, manager of consultants Le BIPE presented an independent study conducted for EuroConstruct on the multiplier effect of an investment in concrete for the whole economy, focusing on the benefits of a local supply chain. The report’s findings were revealed at the conference “Citizens at the heart of the sustainably-built environment” hosted by The Concrete Initiative in Brussels on 19 November 2015.

The explanation of LeBipe’s equation is simple:

• The cement and concrete industry directly generated €20bn in value added and 384 thousand jobs across the EU28 (Y2012 data).
• 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.
• 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.

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.

The study covers the EU 28 plus Norway, Turkey and Switzerland and assesses the cement and concrete industries’ direct (jobs, growth), indirect (upstream and downstream) and induced (direct and indirect employee expenditure) contribution to the economy.

It demonstrates that the 2.8 multiplier effect is a structural characteristic of the industry and is independent from the macroeconomic context.

Multiplier effect on the Economy and Contribution to a Low Carbon Economy

The Le Bipe study also highlights the key sectors where cement and concrete are used which in turn contribute to Europe’s low carbon economy. These include energy efficiency, transport infrastructure and sustainable construction.

The full study is available for download here:

Source: The Concrete Initiative press release

Further reading: Construction industry’s recovery can drive economic growth (EurActiv)

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Concrete Dialogue 2015: Commissioner Karmenu Vella’s Opening Speech

Written by Andrea Vanni on 20 Nov&11b30p;2015

Karmenu Vella, European Commissioner for the Environment, Maritime Affairs and Fisheries, opened the roundtable debate Concrete

 organized by The Concrete Initiative at The Square Meeting Centre in Brussels on 19 November 2015.

Let’s remember that it is about much more than resources,

said Vella of circular economy referring to the three pillars of sustainable construction,

there are real economic gains to be made from using raw materials and resources more efficiently. There are social gains to be made from preventing waste and introducing more recycling, and then of course there are environmental gains.

But the circular economy is not just an idea: it has to be a practical reality. That’s what makes The Concrete Initiative so valuable. It is a very good example of how a sector can contribute directly.

Read more of Vella’s view on circular economy and the construction sector in this interview, published today by EurActiv in their Special Report on Sustainable Construction.

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