Is this the true size of the global professional concrete cutting industry?
Published 22/12, 2023 at 11:20To put a figure or a value on the global and professional concrete cutting industry is almost impossible, although PDi has for many years, with help from the IACDS, tried it. Recently however we have received some updates from some markets, and despite pandemic, war and
recession in many parts of the world, we’ve had another go at
estimating the size of this important industry sector.
Until 2018 the international umbrella association for concrete cutting contractors, IACDS, conducted an annual survey to estimate the value of the global concrete cutting market annually. However, since 2018 this work has not been undertaken nor summarised at a global level.
PDi’s Concrete Cutting Survey
PDi until 2018 used the IACDS own figures and published what we termed the ‘Concrete Cutting Survey’. Due to a lack of input it has been very difficult to estimate the size and value of the industry. However, PDi has now been talking to some representatives from different countries and we are now able to publish somewhat updated figures regarding the value of the global market, including how many professional concrete cutting contractors are operating in each country.
Pandemic struck hard in Australia, but business has now recovered
In the table shown we have received updated figures for 2023 from Australia, Brazil, Argentina and the United Kingdom. For the Australian figures Lloyd Williams, managing director of Traxx Construction Products, has been very helpful. Lloyd has extensive and well documented experience working with the Australian concrete cutting and demolition industry. For many years he worked for Husqvarna Construction Products and for the last couple of decades he has run the company Traxx. The numbers presented from Australia show a variance when compared to previous surveys, but the current numbers should be correct plus or minus 10%.
Lloyd comments that the Covid pandemic had a major strong impact on the business. “Most of the Australian concrete cutters claim that Covid impacted their businesses by minus 55% to 60%, but the majority say today that most of the business lost has now recovered. The general opinion is that all States of Australia are working at a medium to strong level. Contractors feel that the lack of skilled operators is a major threat to their businesses. A problem is that younger people seem not to be attracted to the industry, despite the Australian concrete cutting association’s best efforts.”
Increased use of remote controlled robots takes business from sawing and drilling in Brazil
We are also happy to provide updated numbers for the Brazilian market thanks to estimates from Husqvarna Construction Products. The figures have been provided by Divanil Antonio Merlo at Contractor Direct, Sales Department Brazil, and André Menezes, VP Sales & Services, Emerging Markets. Menezes points out that the figures are Husqvarna’s own perception of the market and it doesn’t mean they are actual numbers and that they do not entirely reflect entirely current market conditions. However, Brazil doesn’t have a national association, so PDi is very happy to provide these figures as they hopefully are rather close to reality.
“The Brazilian estimates are taking into account contractors that work with controlled demolition as well as concrete sawing and drilling. There has been a slight reduction of companies from previous figures which has to do with that some small and medium sized contractors have stopped providing these services or changed their activities,” says Merlo. He adds that Brazilian rental companies are now offering drill motors and different types of sawing machines, including with an operator. This fact has resulted in that it has become less expensive to rent these services when compared to ordering them from a small or medium sized contractor.
“In terms of revenues in Brazil, the larger contractors with more than 10 employees have increased their revenues in recent years. If these contractors are excluded in the figures, possibly the annual revenue will drop some 50%,” says Merlo. He also points out that the Brazilian market has seen an increase in the use of remote controlled demolition robots which in several cases has replaced concrete sawing equipment in the demolition of chimneys, water tanks, reservoirs, etc.
Number of association members up in the UK while turnover has gone down
In the United Kingdom, the Drilling & Sawing Association has provided updated figures through its secretary Joel Vinsant. The number of members in the association has increased by almost 10 companies, but the total number in the country has gone down by 35 companies. Also, the average turnover per year has decreased extensively as well as the total market value.
Argentina up against tough challenges
New to this survey is Argentina. Right now, the Argentinian economy is experiencing a very difficult time with galloping inflation estimated to be over 160%. The new president, Javier Milei, has stated that he will implement ‘shock economic measures’ that will devalue the country’s currency and cut subsidies, amongst other things. The construction sector, like almost all other business areas, is experiencing very difficult times. The professional concrete cutting sector in Argentina is very small with one man cutting firms and demolition firms that offer some concrete cutting is omitted from the total. It is estimated that there are maybe some 8-10 larger concrete cutting firms with more than 10 employees, and a maximum of 30 small to medium sized concrete cutting firms that in most cases offer drilling and sawing services.
The global market value of concrete cutting
If we then again try to calculate the total market value of the international concrete cutting market, we arrive at the following figures. First, it should be noted that these are professional concrete cutting contractors that almost exclusively work with drilling and sawing in concrete, and to a certain extent, controlled demolition and demolition with demolition robots. There are 1,982 companies globally that are affiliated to national concrete cutting industry organisations. The total number of companies in the world where a company’s major focus is concrete cutting services of some sort is 15,895. The figure could however be more than 50 times that number if all contractors that offer some form of drilling and sawing services is counted. These 15,895 companies have an average turnover of €17.35M making the total market value be €12.33B. It is important to mention that the average annual turnover of €17.35M is an estimated average. There is a large group of contractors that turnover far more than that average and several thousands of contractors which turnover far less.