Industrial sector in multifaceted crisis, manufacturing sectors including cement struggling to survive

❐ Staff Reporter

Adding to the existing economic pressures is a slowdown in consumer demand. Shoppers are cutting back on non-essential items, leading to a decline in consumption of products like tissues and toiletries, further squeezing the cash flow of manufacturing companies.

The combined impact of multiple crises is now becoming clear in the industrial sector. A prime example of this is the cement industry.

Industry insiders said that almost all of the main raw materials for cement production – clinker, limestone and gypsum – are imported. A large part of this comes from Middle Eastern countries. However, due to the ongoing regional conflict, supplies from that region have been disrupted for the past two months.

This has been compounded by the abnormal increase in shipping costs, which has further increased import costs. At the same time, factories are having to repeatedly shut down production due to diesel shortages due to the fuel-dependent production system.

The transportation crisis has also complicated the situation. The lack of diesel has limited the movement of lighter vessels, which has led to a significant increase in the waiting time of large ships at outer anchorages. This has forced companies to pay additional demurrage.

“Production costs have increased by about 40 percent, but sales have decreased by more than 50 percent,” said an official in the sector.

The transport crisis has also impacted industrial productivity. An executive at a leading cement manufacturing company said that the use of both its own and hired trucks has almost halved.

He said, “Earlier, a truck could complete one trip in a day. Now it takes two days to do the same work. Yet, even though the vehicles are idle, the drivers have to bear the wages.”

Export-oriented sectors are also under similar pressure. The head of an industry group said they are struggling to deliver products on time.

He said, “Even though the truck fare has doubled, the goods are not being delivered on time.”

To deal with this situation, businessmen are considering taking initiatives to ensure priority in fuel supply.

According to traders, industrial establishments are under multifaceted pressure due to transportation disruptions, rising production costs, and falling demand. The situation could become more complicated if fuel supply is not restored quickly.

Industry insiders warn that this could put not only profits, but also the survival of many organizations and their ability to repay bank loans at risk.

“It is no longer just a matter of additional costs; in the current reality, it has become a fight for survival,” said a cement producer.