Technology innovation in building sector: cement mortar production

The market for building materials is one of the largest markets in existence. In Italy, on the basis of a recent census by BE-MA Group (especially in the construction industry), 7,328 independent dealers and 141 retailers organized retail-groups operate in this field. Furthermore, an analysis of a sample of 55 groups with a total of 1,154 stores showed the average revenue per store is 3.7 million €. Of this, 30% is generated by mortar and finishes for building. In general, the market is typical of commodities characterized by a low rate of innovation (e.g. the still actual best-selling glue "Kerakoll H40" was launched in 1978, the best-selling waterproof "Mapelastic - Mapei has been on the market for 17 years). The spectrum of producers is completed by some leading international companies (e.g. FASSABORTOLO, BRUTIN WEBER, KERACOLL) which are characterized by a range of medium to high level production. The sector is not particularly subject to economies of scale, because the process is extremely simple and raw materials do not exhibit significant differences in price based on volume purchased. Products have low costs and production is developed at a regional level with a series of businesses that have expanded lime production, offering a series of pre-mixed products, and in some cases, colored ones according to a color chart. This paper describes a case study of process innovation in this sector. It analyzes the re-engineering of the process of production, distribution, sale and control of cement mortar. Finally, through benchmarketing analysis, an evaluation of the benefits in economic, environmental and social terms is presented.