To meet the new challenges of our fast-moving markets, we have defined a 5-pillar strategy that puts our customers first and focuses on innovation in our products, solutions, and industrial processes
3 major challenges for the construction industry
LafargeHolcim is evolving in a fast-moving business environment. Our construction and building materials industry is impacted by three major market trends:
● Population growth and rapid urbanization: By 2020, it is projected that the global population will reach approximately 7.7 billion and the number of people who live in or around urbanized areas will rise by 1 billion from today's levels. This rapid growth during the 21st century is driving an increased demand for affordable housing and infrastructure as more and more people live in or around urbanized areas.
● Increasing demand for value-added products and services from building materials companies: Competition among building materials companies is no longer based only on prices and the ability to deliver cement. To differentiate, we need to offer innovative, user-tailored products and solutions that improve the quality of buildings (e.g., environmental properties, aesthetics, and durability) and reduce the cost of construction or of ownership lifecycle. We also increasingly offer global services and solutions to building companies.
● Resource scarcity and climate change: our industry must create sustainable, resource and energy efficient materials and manufacturing processes.
Innovation at LafargeHolcim
For LafargeHolcim, innovation is a never-ending cycle. We introduce innovations at all levels of our operating cycle to drive transformation of our business, with the ultimate goal of serving our customers the best possible way, whatever their needs. This encompasses:
The 5 pillars of LafargeHolcim’s strategy
Serve the building needs of homebuilders and individuals
Finding the most effective ways to bring our products to those who sell and use them:
Be the preferred partner for building and infrastructure
An in-depth understanding of end users and eco-systems in which projects will be implemented is crucial.
Achieve operational excellence through continuous improvement to create value
To create value, we deliver cost leadership and implement advanced operating models across all product lines. We intend to capitalize on our professional teams, assets, technologies, innovation in industrial operations, and strong operating models to replicate best practices across the business in all geographic markets.
Commit to creating economically and environmentally sustainable solutions
As the leader in sustainable solutions, we will create shared value with society and reduce our environmental footprint. Examples of our sustainability objectives include:
Commit to delivering the best return on capital
● In the short term, we estimate that we will deliver EUR 1.4 billion of synergies.