Global competition, be it in the form of finished products or locally manufactured building materials, has put high pressures to the local industry players. Manufacturers from heavy materials to light ones have opened manufacturing facilities in Indonesia from cement to steel base production. Meanwhile, in many products, i.e. light steel, main competitors of locally made are imported products that offer competitive pricing.

Unlike cement where basic price has been regulated, other products are facing free market competition. The industry is then challenged by efficiency in getting raw materials and in reducing production costs.

The challenge is obvious. Aside of the price, product should offer beyond price – something that previously not being the focus of most companies engaged in the industry. Brand strategy that goes beyond conventional practice should be introduced correctly. Approach to market and channel strategy should also be adopted by medium sized companies on the sector.

With the lesson from Covid-19, the mid sizes companies should also immediately adopt digitalization in the manufacturing as well as in sales and marketing areas.

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