The structure of the construction industry in Kenya , Botswana and South Africa is rapidly changing. Major forces shaping the structure of the industry and competitive advantage of individual players are;
Retail Market Growth
There is a huge market for the vinyl floor tiles, window glasses and panels and other related products as more low to medium households strive to live in better houses. This has been attributed to the strong economic growth that has empowered people to have better quality of life. However, there's a need to form stronger and close links with international companies in Europe and America , which do the same kind of business.
New housing and sheltering technologies continue to improve information, service levels and general efficiencies of the manufacturers and distributors of the housing construction industry. Therefore, more retailers have more knowledge and power through the consumer data and information they collect. However, these consumer tastes and changes in fashion need to be managed carefully as they move through short life cycles. This means that more stock must be liquidated quickly as fashions change.
Building of New Housing Units
There has been an increase in construction of low to middle class houses which has led to a huge demand for building and construction products. Kenya has recorded a significant growth in the construction sector in the last five years. This is evident from the huge cement consumption in the local market as well as the neighboring countries. The demand for steel, construction poles/timber from the generation companies like Eskom and Kenya Power and Lighting Company (KPLC) is increasing. We expect this growth to continue as the reconstruction of the Southern Sudan gains interest and the UN Habitat program to upgrade slums in Africa takes attention.
All the above will lead to more demand on the OCHL products across the continent as the push from more low cost housing increases. The World Cup in 2010 will see large investments in both the transport and building infrastructure within South Africa . This has and will continue to increase the demand of the Yokota products