Some of our existing customers have asked us to start delivering materials at sites
18 May 2020
4 Min Read
CW Staff
ULMA is a leading manufacturer and supplier of formwork, shoring and temporary scaffolding systems, providing high performance engineered products and reliable services. The firm has a track record of highlighted projects in every field of the concrete construction industry. While the lockdown due to COVID had impacted its operations, the firm is now prepared to keep up with its ongoing orders and projects.
In an exclusive video interview hosted by CONSTRUCTION WORLD, Surajit Ray, Managing Director, ULMA Formwork, discusses how the firm has been coping with the lockdown, how long will it take for recovery, the impact of the rise in steel price on the formwork industry, and more...
Excerpts:
Coping with the lockdown: We already had contracts for various projects in hand prior to the lockdown. While some materials could be sent to customer sites, we could not undertake the complete assembly at some customers’ sites as things came to a halt. Ulma in India imports materials from Spain, so in such a situation all our imports from Spain were on container vessels in the seas. Also, nothing could be cleared in the customs. This was our situation during the lockdown. With the lockdown being partially lifted now, customers of four to five contracts we had in hand have asked us to start delivering materials at sites as interstate movement of trucks and trailers have now been allowed. We have also been allowed to open our warehouse on the special permission. We have sanitised the place and our labourers have started coming in. We are also planning to send our engineers to start assembly jobs. Also, during the lockdown we have been working from home with our fabricators, with our quality control people. We will undertake shipments from two to three of our factories to our warehouse in the next few days.
Heading to recovery: We have already lost two months in construction. I don’t think residential and commercial projects for developers will pick up immediately after the lockdown. In fact, new projects being planned may be on the back burner for at least about five to six months, unless one is absolutely sure of the availability of labour, of materials, and at a justified cost. Speaking about construction material cost, while there is no reason for cost escalation, there are increases in cost in the market – there is a temporary hike in steel and cement prices. So I don’t think new projects will pick up in the next four or five months. But ongoing projects that have completed the foundation works and already have a plan in pace, can work in full force. However, with the monsoons coming in, I think there will be sloth in construction activities in the next at least four to five months.
Impact of rise in steel price on formwork industry: Steel prices definitely have an impact on the formwork industry because it is a material that continuous incoming and outgoing operations depend upon. So if there is a stoppage in materials coming in for two months, the stock available prior to the lockdown becomes costly for customers who need it immediately. Evidently, the price hike is because of high demand and less supply. Also, because of logistical issues, materials have not been transferred from the factories to the distributors. Besides this, I don't see any reason of increase in cost in raw materials that should make steel price shoot. I think the steel prices will roll back to what it was prior to the lockdown, in February-March this year, say by November.
Demand from commercial and industrial: Commercial and industrial infrastructure will help us in our business, especially from orders in the South and West of India. We have contracted for many commercial buildings, such as data centres, and for customers like Amazon, Google, etc. Our focus will continue to be on commercial and infrastructure projects. We also have industrial projects on the anvil that are already in discussion is discussing.
ULMA is a leading manufacturer and supplier of formwork, shoring and temporary scaffolding systems, providing high performance engineered products and reliable services. The firm has a track record of highlighted projects in every field of the concrete construction industry. While the lockdown due to COVID had impacted its operations, the firm is now prepared to keep up with its ongoing orders and projects.
In an exclusive video interview hosted by CONSTRUCTION WORLD, Surajit Ray, Managing Director, ULMA Formwork, discusses how the firm has been coping with the lockdown, how long will it take for recovery, the impact of the rise in steel price on the formwork industry, and more...
Excerpts:
Coping with the lockdown: We already had contracts for various projects in hand prior to the lockdown. While some materials could be sent to customer sites, we could not undertake the complete assembly at some customers’ sites as things came to a halt. Ulma in India imports materials from Spain, so in such a situation all our imports from Spain were on container vessels in the seas. Also, nothing could be cleared in the customs. This was our situation during the lockdown. With the lockdown being partially lifted now, customers of four to five contracts we had in hand have asked us to start delivering materials at sites as interstate movement of trucks and trailers have now been allowed. We have also been allowed to open our warehouse on the special permission. We have sanitised the place and our labourers have started coming in. We are also planning to send our engineers to start assembly jobs. Also, during the lockdown we have been working from home with our fabricators, with our quality control people. We will undertake shipments from two to three of our factories to our warehouse in the next few days.
Heading to recovery: We have already lost two months in construction. I don’t think residential and commercial projects for developers will pick up immediately after the lockdown. In fact, new projects being planned may be on the back burner for at least about five to six months, unless one is absolutely sure of the availability of labour, of materials, and at a justified cost. Speaking about construction material cost, while there is no reason for cost escalation, there are increases in cost in the market – there is a temporary hike in steel and cement prices. So I don’t think new projects will pick up in the next four or five months. But ongoing projects that have completed the foundation works and already have a plan in pace, can work in full force. However, with the monsoons coming in, I think there will be sloth in construction activities in the next at least four to five months.
Impact of rise in steel price on formwork industry: Steel prices definitely have an impact on the formwork industry because it is a material that continuous incoming and outgoing operations depend upon. So if there is a stoppage in materials coming in for two months, the stock available prior to the lockdown becomes costly for customers who need it immediately. Evidently, the price hike is because of high demand and less supply. Also, because of logistical issues, materials have not been transferred from the factories to the distributors. Besides this, I don't see any reason of increase in cost in raw materials that should make steel price shoot. I think the steel prices will roll back to what it was prior to the lockdown, in February-March this year, say by November.
Demand from commercial and industrial: Commercial and industrial infrastructure will help us in our business, especially from orders in the South and West of India. We have contracted for many commercial buildings, such as data centres, and for customers like Amazon, Google, etc. Our focus will continue to be on commercial and infrastructure projects. We also have industrial projects on the anvil that are already in discussion is discussing.
Watch the full video to know more on what Surajit Ray has to say about the environment and sustainability...
Stay tuned for Construction World’s FREE webinars. View our complete webinar calendar and previous webinars here.
Efficiently handling the transportation and placement of concrete is essential to help maintain the quality of construction, meet project timelines by minimising downtimes, and reduce costs – by 5 to 15 per cent, according to Sandeep Jain, Director, Arkade Developers. CW explores what the efficient handling of concrete entails.Select wellFirst, a word on choosing the right equipment, such as a mixer with a capacity aligned to the volume required onsite, from Vaibhav Kulkarni, Concrete Expert. “An overly large mixer will increase the idle time (and cost), while one that ..
Raised access flooring, also called false flooring, is a less common interiors feature than false ceilings, but it has as many uses – if not more.A raised floor is a modular panel installed above the structural floor. The space beneath the raised flooring is typically used to accommodate utilities such as electrical cables, plumbing and HVAC systems. And so, raised flooring is usually associated with buildings with heavy cabling and precise air distribution needs, such as data centres.That said, CW interacted with designers and architects and discovered that false flooring can come in handy ..
A variation or change in scope clause is defined in construction contracts to take care of situations arising from change in the defined scope of work. Such changes may arise due to factors such as additions or deletions in the scope of work, modifications in the type, grade or specifications of materials, alterations in specifications or drawings, and acts or omissions of other contractors. Further, ineffective planning, inadequate investigations or surveys and requests from the employer or those within the project’s area of influence can contribute to changes in the scope of work. Ext..
