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Demand in Local and Foreign Markets

There is an obvious correlation between construction activities and demand for marble there tend to be an increase in marble demand whenever construction activity increase .last 10 year provide evidence that afghan construction industry is growing at an astonishing rate of more than 22% although there has been an enormous supply of commercial building and housing estates in Afghanistan there is still huge demand for housing construction activity to accommodate the fast growing afghan population therefore ,one can expect a continues increasing in demand for marbles in Afghanistan

Moreover, increase awareness of people on the advantages of using marble just for example durability, environment friendly .low future repairing and maintenance cost and etc...Is a promising sign for the increasing in domestic demand for marble.

Even though a big portion of marble is consumed for construction (surfacing and flooring) and interior decoration (kitchens, bathrooms and stairs) recently the artistic use of marbles (sculpture, monuments, tables, etc...) is reinventing itself. The reinvention of artistic use of marble in Afghanistan is another reason to export an increase in domestic demand. More then, artistic application of marble business is extremely profitable as it is a very high value adding process for example from one ton of best quality marbles which cost around $100 one can make 10 beautifully birds each worth over $400.

According to our finding, annual consumption in Afghanistan is between 920,000 to 1,230,000 tons. But domestic quarries can only produce between 184,500 and 246,000 tons per year .part of unprocessed afghan marbles is exported to Pakistan for processing purpose. These are often re imported to Afghanistan as higher value added and processed marbles. Therefore over 85 percent of marbles consumption in Afghanistan almost 780,000 to 1.000.000 tons is met by imported marbles, mostly from Pakistan in order to capture the bigger share of the market , afghan firms need to struggle intensively . They need to be as efficient as possible by adapting lean production concept. To do so, firms need to reconsider their management, technology, and production and marketing strategy. First, they should improve their management skills through hiring professional staff for the management of their enterprises. Second, they should update their technology and equipment, and employ the latest generation of machineries available at the international markets .finally, they must have clear understanding of the fact that increasing market share by lowering their prices and thus increase their sales is good strategy rather than looking for high profit with small market share and yet for a short –term.

Given the high quality of afghan marbles, there is a huge demand in regional countries (mainly Turkmenistan, Saudi, Kuwait and UAE) and in some international markets (such as Italy, Germany, the UK and the US). Nonetheless, many challenges need to be overcome by the government and the privet sector, so that Afghan firms can access these international markets. First, afghan firms need to increase their polishing quality; they can only do this by employing new standard technology. Secondly, the relevant government institutions - mainly the export promotion agency of Afghanistan - should provide the necessary physical and international facilities to help afghan firms access international markets.



It is worth mentioning that the industry is growing at a 60 -percent rate (in term of output) which is very promising for the investors, and we expect the by the end of 2016 total value-added created by this sector can reach as high as $800 million.

 

chapter --3


Date: 2015-01-29; view: 711


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