The shift from West to ASEAN market in the stone industry, driven in part by rising oil prices, reflects a complex interplay of economic and logistical factors. Increased shipping and production costs due to higher oil prices make closer and growing ASEAN market more attractive. This strategic shift helps mitigate some of the challenges posed by rising oil prices and positions companies to take advantage of emerging market opportunities in this region.
From 11-13 December 2024 at Saigon Exhibition & Convention Center (SECC), ASEAN Stone exhibition together with Confindustria Marmomacchine, will facilitate meeting of minds across stone industry sector and forge collaborations necessary to discuss critical challenges to help accelerate the industry growth through participation in knowledge exchange, meetings with buyers, and meaningful business networking.
Stone suppliers to pivot focus in ASEAN:
· Diversification of markets – Exports of Stone shifts focus to ASEAN to diversify their market base whilst reducing dependency on Western countries facing economic uncertainties, high operational costs and more stringent regulations. With the booming infrastructure development and construction activities in Southeast Asia, the region offers better opportunities for growth and profitability for new entrants to gain strong foothold.
· Supply chain optimization – By focusing on ASEAN market, stone suppliers can optimize their supply chains by reducing shipping distances and associated costs which help mitigate the impact of rising oil prices more effectively.
· Favourable trade terms – Southeast Asia benefits from various regional trade agreements, such as the ASEAN Free Trade Area (AFTA), which can reduce tariffs and facilitate easier market access. This can be advantageous in offsetting some of the impacts of rising shipping costs.
