In line with LafargeHolcim, to meet the new challenges of our fastmoving 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 fastmoving 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.
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:
- With respect to distributors and retailers, we develop marketing and customer loyalty support programs, provide advanced logistics to reach more isolated rural and urban communities, and enable a shortening of the distribution chain and partnerships with retail chains.
- With respect to homebuilders, individuals, and other end- users, we introduce innovative products and valueadded services such as bundling or affordable housing financing solutions for individuals. We strive to associate our brand with values such as respect for people, sustainability, quality, reliability, ease of purchase, and ease of use.
Be the preferred partner for building and infrastructure
An indepth understanding of end users and ecosystems in which projects will be implemented is crucial.
- In the commercial construction segment, we intend to work with our customers and decisionmakers (architects and designers) to reduce their operational costs, create differentiation in mature markets, and help them develop reputations in emerging markets.
- In the infrastructure segment, we seek early involvement and provide materials that meet specific infrastructure challenges related to technology, acceptability, longevity, and project execution, from bidding to delivery and after sales.
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:
- Developing innovative solutions, such as low CO2 cement and recyclable aggregates.
- Creating products that optimize energy consumption of buildings throughout their lifecycle.
- Demonstrating leadership in environmentally sustainable and socially responsible solutions.
- Engaging proactively with regulatory agencies and stakeholders at all levels, applying and promoting strict environmental and social standards for the industry.
- Incorporating solutions that focus on biomass use, waste and water management, robust rehabilitation, and biodiversity management at extraction sites.
- Acting with integrity in all dealings and inclusiveness in the workplace.
Commit to delivering the best return on capital
- In the short term, we estimate that we will deliver EUR 1.4 billion of synergies.
- In the medium term, the new Group will fully benefit from the size of its industrial network, which will facilitate optimizations and avoid the need for large acquisitions or heavy investments. Similarly, its capacity for implementing an innovation strategy on a very large scale will be a key advantage for generating a strong growth dynamic at low cost.