Concrete Block Production in Bangladesh: A Strategic Industry Analysis and Market Outlook

1.0 The Bangladesh Construction Materials Landscape: A Paradigm Shift

The construction sector in Bangladesh stands at a critical juncture, compelled by environmental necessity and economic opportunity to pivot away from its historical reliance on traditional building materials. This transition is most pronounced in the foundational choice between the incumbent fired clay brick and its modern successor, the concrete block. The shift is not merely a change in material preference but a paradigm shift driven by acute environmental degradation, national policy mandates, and the powerful tailwinds of a rapidly urbanizing and developing economy. Understanding this transition is fundamental to grasping the strategic landscape for building materials in the nation for the coming decade.

1.1 The End of an Era: The Environmental and Economic Imperative to Move Beyond Clay Bricks

For decades, the fired clay brick has been the ubiquitous building block of Bangladesh. However, its production has inflicted a severe and unsustainable toll on the nation’s environment, economy, and public health, creating an urgent imperative for change. The traditional brick manufacturing industry, comprising an estimated 7,000 to 8,000 kilns, is now recognized as a primary driver of environmental degradation in the country.¹ A significant portion of these kilns operate illegally, flouting environmental regulations and exacerbating the damage.⁴

The most alarming impact is the industry’s consumption of fertile agricultural topsoil. To produce approximately 23 billion bricks annually, the sector consumes a staggering 122.5 million metric tonnes of topsoil, equivalent to 3,350 million cubic feet of clay each year.¹ This systematic destruction of the nation’s most valuable agricultural resource directly threatens food security in a densely populated country.⁵ Research from the state-run Housing and Building Research Institute (HBRI) indicates that brick kilns are responsible for 17% of the daily loss of agricultural land in Bangladesh.⁵ This irreversible depletion of arable land has elevated the issue from a purely environmental concern to one of national strategic importance.

Simultaneously, the brick kiln industry is the single largest source of air pollution in Bangladesh.¹ The burning of low-quality coal and biomass fuels releases vast quantities of greenhouse gases and harmful pollutants. Brick kilns are responsible for an estimated 17% to 22.5% of the nation’s total annual carbon dioxide emissions and are a primary source of particulate matter (PM2.5), sulfur dioxide (SO2), and carbon monoxide (CO).⁵ In the greater Dhaka region alone, these kilns contribute to 13% of the total air pollution, creating a severe public health crisis.⁵ The production process is also notoriously inefficient from an energy perspective. Manufacturing traditional bricks requires approximately 4400 megajoules (MJ) of energy per tonne, nearly double the 2400 MJ per tonne required for concrete blocks.⁸ The confluence of these factors—the threat to food security, the public health emergency from air pollution, and the high carbon footprint—has created an undeniable case for the managed decline of the traditional brick industry.

1.2 The Rise of Concrete Blocks: An Eco-Friendly Alternative for a Developing Nation

In response to the multifaceted crisis created by traditional brick manufacturing, the concrete block has emerged as the designated successor and the cornerstone of a more sustainable construction future for Bangladesh. Positioned as a modern, technologically advanced, and environmentally responsible alternative, the concrete block industry is being actively promoted by government bodies and industry innovators alike.¹

Concrete blocks offer a compelling value proposition centered on sustainability and performance. Their production process has a significantly lower environmental impact. It avoids the burning of fossil fuels and the depletion of agricultural topsoil, instead utilizing more readily available and, in many cases, recycled or alternative raw materials.⁹ The embodied energy of a hollow concrete block is approximately 0.59 MJ/kg, which is over eight times less than the 4.76 MJ/kg required for a traditional fired brick.⁴ This inherent efficiency contributes to a lower carbon footprint and aligns with Bangladesh’s national development goals and international climate commitments.¹

The state-run Housing and Building Research Institute (HBRI) has been instrumental in this transition, acting as a key research and development hub. The institute has successfully developed and promoted around 30 different categories of eco-friendly and cost-effective concrete blocks, tailored for various applications and utilizing innovative material compositions.¹ This institutional backing has provided the nascent industry with technical credibility and a portfolio of viable products, accelerating its journey from a niche alternative to a mainstream building material. The narrative surrounding concrete blocks is one of innovation and adaptation, representing a promising path towards a greener and more resilient infrastructure for the nation.¹⁰

1.3 Macroeconomic Drivers: Urbanization, Infrastructure, and the Demand for Sustainable Construction

The transition towards concrete blocks is not occurring in a vacuum. It is propelled by powerful macroeconomic forces that are reshaping Bangladesh’s physical and economic landscape. The country is undergoing a period of intense urbanization and infrastructure development, creating a voracious appetite for construction materials.⁹ This organic, bottom-up demand provides a powerful tailwind for the concrete block industry’s growth.

The scale of this growth is substantial. The overall construction market in Bangladesh is forecast to expand by 10.4% to reach BDT 4.58 trillion in 2025. This robust growth is expected to continue, with a projected compound annual growth rate (CAGR) of 9.7% between 2025 and 2029, pushing the market value to an estimated BDT 7.27 trillion.¹⁴ The real estate sector mirrors this trajectory, with a market value projected to reach US$3.53 trillion by 2028, driven largely by the high demand for residential housing.¹³

This construction boom is fueled by a confluence of factors, including a rising middle class, rapid industrialization, and massive public investment in transformative infrastructure projects such as the Padma Bridge, various metro rail systems, and economic zones.¹³ These large-scale projects not only consume vast quantities of building materials but also catalyze further private development in their vicinity.

This places the concrete block industry at a uniquely advantageous position. It benefits from the convergence of two independent, powerful trends: a top-down regulatory push for sustainability mandating a shift away from bricks, and a bottom-up macroeconomic pull from unprecedented construction demand. The industry is therefore not merely competing for a share of a static market; it is positioned to capture a growing share of an expanding economic pie. This dual-driver dynamic creates a uniquely compelling environment for investment and strategic growth, distinguishing it from simple replacement markets.

2.0 Market Analysis: Sizing the Concrete Block Opportunity

A thorough market analysis reveals that the concrete block industry in Bangladesh, while currently a small fraction of the total masonry market, is poised for exponential growth. This growth is underpinned by the vast size of the incumbent brick market it aims to displace and favorable demand drivers across all key construction segments.

2.1 Current Market Size, Segmentation, and Valuation

The primary market opportunity for concrete blocks lies in capturing share from the traditional fired-clay brick industry. The total market for traditional bricks in Bangladesh is conservatively estimated to be worth over BDT 90 billion annually.⁸ Some estimates place the figure even higher, at around Tk50,000 crore (BDT 500 billion), indicating the massive scale of the sector.⁵

Against this backdrop, the concrete block industry is still in its nascent stages but has established a firm foothold. As of recent estimates, concrete block producers have captured a market share valued at approximately BDT 2.0 billion.¹⁶ This represents a market penetration of roughly 2-3% of the BDT 90 billion brick market. In terms of volume, the disparity is even more stark, with concrete block production accounting for only 6-7% of the total volume of burnt brick production.⁵ This significant gap between the current market share and the total addressable market represents the core growth opportunity.

The market is segmented primarily by product type and end-use application. Key product segments include hollow blocks, solid blocks, Autoclaved Aerated Concrete (AAC) blocks, paver blocks, and kerb stones.⁹ The main application segments are residential construction, commercial (or non-residential) buildings, and public infrastructure projects.¹⁷ The hollow block sub-segment, a key indicator of adoption in building construction, was valued at BDT 2 billion in 2022.¹⁷

2.2 Growth Trajectory and Projections (2025-2030)

The future growth trajectory for the concrete block industry in Bangladesh is exceptionally strong, far outpacing the growth of the broader construction sector. This accelerated growth is predicated on the dual drivers of organic construction market expansion and, more significantly, the progressive displacement of traditional bricks.

The market for hollow concrete blocks in Bangladesh provides a clear illustration of this trend. Valued at BDT 2 billion in 2022, it is projected to quadruple in size to BDT 8 billion by 2030.¹⁷ This represents a compound annual growth rate (CAGR) of approximately 18.9%. This growth rate is substantially higher than that of the underlying markets. For comparison, the overall construction sector in Bangladesh is forecast to grow at a CAGR of 9.7% from 2025-2029, while the upstream cement industry is projected to grow at a more modest CAGR of 3.6% through 2028.¹⁴

The significant delta between the projected growth of concrete blocks (18.9%) and the growth of the overall construction market (9.7%) underscores a critical point: the industry’s primary growth engine is market share capture. While the expanding construction pie provides a favorable environment, the aggressive growth forecasts are driven by the assumption that concrete blocks will progressively replace traditional bricks, fueled by government mandates, environmental pressures, and growing consumer acceptance.

Table 1: Bangladesh Concrete Block Market – Key Metrics and Forecasts (2022-2030)

Metric	2022 (Actual/Est.)	2025 (Forecast)	2030 (Forecast)	CAGR (2022-2030)	Key Drivers/Assumptions
Total Brick Market Size (BDT)	90 Billion	95 Billion	105 Billion	~2.0%	Inflation and moderate volume growth
Concrete Block Market Size (BDT)	2 Billion	4.5 Billion	10 Billion	~22.3%	Aggressive market share capture from bricks
Concrete Block Market Share (%)	~2.2%	~4.7%	~9.5%	N/A	Driven by policy enforcement & demand
Hollow Block Market Size (BDT)	2 Billion	3.4 Billion	8 Billion	~18.9%	Strong adoption in residential/commercial
Overall Construction Market Size (BDT)	3.75 Trillion	4.58 Trillion	6.5 Trillion	~7.1%	Urbanization and infrastructure spending

Note: Figures are compiled and projected based on data from sources ⁸, and.¹⁷ Forecasts are illustrative and depend on the realization of underlying assumptions.

2.3 Demand Analysis: Key Segments

Demand for concrete blocks is robust across all major construction segments, each with its own specific drivers and product preferences.

• Residential Construction: This is a primary demand driver, fueled by rapid urbanization and a growing middle class.¹³ Hollow concrete blocks are particularly popular for non-load-bearing partition walls in apartments and individual homes due to their lightweight nature and insulation properties.⁸ With a housing shortage estimated in the millions of units, the long-term demand from this sector is secure.¹⁸
• Commercial & Non-Residential Construction: This segment, encompassing office buildings, factories, and retail spaces, is a leading growth driver for concrete blocks.¹⁷ The functional benefits of blocks, such as fire resistance, soundproofing, and faster construction speeds, are highly valued in commercial projects.⁸
• Infrastructure: The government is poised to become the single largest customer for concrete blocks, driven by its mandate to use them in 100% of public projects.¹ This includes large-scale use of interlocking paver blocks for rural roads, with the Local Government Engineering Department (LGED) planning to pave 12,000 km of herringbone roads with them.¹⁶ Kerb stones are also in high demand for road and highway projects across the country.⁹

2.4 Pricing Dynamics: Regional Variations and Cost Influencers

The price of concrete blocks in Bangladesh is not uniform, varying significantly based on block type, quality, region, and a host of external factors. A standard 6-inch hollow block typically ranges from BDT 30 to 50 per piece.²⁰ However, prices for specific products can vary widely: a solid concrete brick may cost around BDT 12.50, while a larger hollow block can be BDT 45-50, and specialized paver blocks can range from BDT 20 to BDT 40 depending on size and design.²¹

There is a distinct regional variation in pricing, primarily driven by demand density and logistics costs. Major urban centers with high construction activity exhibit higher prices. For example, the average price per piece in Dhaka is around BDT 50, compared to BDT 45 in Chittagong, BDT 42 in Khulna, and BDT 40 in Rajshahi.²⁰ This premium in metropolitan areas reflects both the higher demand and the higher cost of transporting materials and finished goods within congested urban environments.

Several key factors influence these prices:

• Raw Material Costs: Fluctuations in the price of essential inputs like cement, sand, and stone aggregates directly impact the production cost and final selling price of the blocks.²⁰
• Energy Prices: The cost of electricity and fuel required for running machinery and curing processes is a significant component of manufacturing expenses.²⁰
• Transportation Costs: Logistics fees, influenced by fuel prices and the distance from the factory to the construction site, are a major contributor to the final delivered cost of these heavy materials.²⁰
• Government Policies: Fiscal policies, such as import duties on raw materials or machinery, can alter the cost structure for producers, with these costs often being passed on to the consumer.²⁰

3.0 The Production Ecosystem: From Raw Materials to Finished Blocks

The production of concrete blocks in Bangladesh involves a multi-stage value chain, from the sourcing of diverse raw materials to highly automated manufacturing processes and final distribution. The ecosystem is characterized by both established industrial practices and emerging innovations aimed at improving sustainability and cost-effectiveness.

3.1 The Value Chain: Sourcing, Manufacturing, and Distribution

The concrete block value chain follows a clear, sequential process. It begins with the procurement of raw materials, which are then precisely measured and mixed in a batching plant. The concrete mixture is transferred to molding machines that form the blocks into desired shapes and sizes. The freshly molded blocks undergo a curing process to achieve the required strength and durability. Throughout these stages, rigorous quality control checks are performed. Finally, the cured blocks are stacked on pallets, often shrink-wrapped, and loaded onto trucks for delivery to construction sites, completing the chain from factory to end-user.⁸

3.2 Raw Materials Deep Dive: Cement, Aggregates, and Alternative Inputs

The composition of concrete blocks is central to their performance and cost. While the core ingredients are standard, there is a significant and growing emphasis on incorporating alternative and sustainable materials.

• Core Components: The fundamental raw materials are Portland cement, which acts as the binder; aggregates, which form the main body of the block; and water, which facilitates the chemical reaction of hydration.¹² The aggregates typically consist of a mix of sand and crushed stone or stone dust.¹²
• Alternative and Sustainable Inputs: A key trend in the industry is the substitution of traditional materials with more sustainable and cost-effective alternatives. This is driven by both environmental concerns and resource scarcity.

• Dredged River Soil: Actively promoted by the government and HBRI, soil dredged from riverbeds is being used as a sustainable aggregate. This practice serves a dual purpose: it provides a readily available raw material while also helping to maintain river navigability.²
• Fly Ash: This fine powder, a byproduct of coal combustion in thermal power plants, is used as a partial replacement for cement. Its use in “Fly Ash Bricks” not only diverts an industrial waste product from landfills but also creates a greener building material.⁸
• Chemical Admixtures: Various additives are incorporated into the concrete mix to enhance specific properties. These can improve workability, accelerate or retard curing time, increase durability, and enhance resistance to weathering.¹² HBRI is conducting significant research into developing admixtures that would allow manufacturers to use cheaper, locally available sands instead of the traditionally required but more expensive Sylhet sand and stone dust, which could dramatically improve the economics of production.²³
• Sourcing Challenges: The availability and sourcing of raw materials represent a critical challenge for the industry.¹² Bangladesh has a notable lack of naturally occurring stone deposits, which makes high-quality crushed stone aggregate a scarce and expensive commodity. This scarcity is so significant that it is estimated that concrete blocks made with traditional stone aggregates may not be able to capture more than 25% of the total brick market supply.²⁵ Furthermore, the cement industry, a vital upstream supplier, is almost entirely dependent on imported clinker, the primary ingredient in cement production. This reliance on imports exposes the entire construction sector to global price volatility, currency fluctuations, and potential supply chain disruptions.²⁶

3.3 Manufacturing Process and Technology

The manufacturing process in Bangladesh has evolved from manual methods to increasingly sophisticated and automated systems, reflecting a broader trend of technological advancement in the sector.¹²

• Process Steps: The core manufacturing process involves four key stages ⁸:

1. Batching and Mixing: Raw materials are measured by weight or volume and thoroughly mixed in a pan mixer to ensure a homogenous concrete mixture.
2. Molding and Compacting: The concrete mix is fed into steel molds of the desired shape and size. The mix is then compacted to achieve density and remove air voids. This is typically done using high-frequency vibration and hydraulic pressure. Common methods include stationary machines, where the mix is poured into individual molds, and vibration tables, where molds are placed on a vibrating platform.⁸
3. Curing and Drying: The molded blocks are transported to curing areas where they harden through the process of hydration. Curing methods vary depending on the desired strength and production speed. Ambient curing involves letting the blocks harden naturally at room temperature, while steam curing exposes them to steam and elevated temperatures to accelerate the process significantly.⁸
4. Quality Control: At various stages of production, samples are taken and subjected to rigorous testing to ensure they meet required standards for compressive strength, water absorption, dimensional accuracy, and density.⁸

• Machinery and Automation: The industry has witnessed significant technological upgrades. The introduction of automated machines, robotic systems for handling, and AI-driven controllers for process optimization has revolutionized production, leading to greater efficiency, precision, and speed.¹² Machinery is available at various levels of automation—from semi-automatic to fully automatic lines—with production capacities ranging from as low as 4,000 pieces to as high as 150,000 pieces per eight-hour shift.²⁷
• Machinery Sourcing and Cost: The capital investment in machinery is a key consideration for producers. A fully automated production line from a large business group can represent an investment of BDT 300-500 million.¹⁶ However, entry-level automated units can be procured from China for a more modest BDT 50 million.¹⁶ Suppliers in Bangladesh offer a range of machinery sourced from international markets, including China, Italy, and Turkey.²⁷ The cost of a complete production line can vary dramatically based on capacity and automation, from around US
  8,500forasmallsemi−automaticplanttooverUS175,000 for a large-scale, fully automatic facility.²⁷

3.4 Product Portfolio Analysis: A Detailed Look at Block Types and Specifications

The concrete block industry in Bangladesh produces a diverse portfolio of products, each designed for specific structural or aesthetic applications. This versatility is a key advantage over the single-application nature of traditional bricks.

• Hollow Concrete Blocks: These are the most common type used for walling. Their hollow cores make them lightweight, which reduces the structural load of a building. The voids also provide excellent thermal and acoustic insulation. They are primarily used for non-load-bearing partition walls, both internal and external, in residential and commercial buildings.⁸ Common sizes include 390x190x190 mm, 390x190x140 mm, and 390x190x100 mm.²⁹
• Solid Concrete Blocks/Bricks: These are dense blocks with no voids, providing excellent compressive strength. They are suitable for constructing load-bearing walls and other structural components where strength is a primary requirement. They also offer superior soundproofing compared to their hollow counterparts.⁹ A standard size is 240x110x70 mm.³¹
• Autoclaved Aerated Concrete (AAC) Blocks: These are a premium, lightweight, precast product. Made by introducing aluminum powder to the concrete mix, which creates millions of tiny air bubbles, AAC blocks have a very low density. This makes them exceptionally good thermal insulators and highly fire-resistant. Their light weight is a significant advantage in the construction of high-rise buildings, as it drastically reduces the dead load on the building’s foundation and structural frame. They can also be easily cut, drilled, and shaped on-site.⁹
• Paver Blocks and Pavement Tiles: These are specially designed blocks for creating durable and aesthetic surfaces for driveways, walkways, patios, and industrial yards. They are manufactured in a wide variety of interlocking shapes (such as Uni-Paver, I-shape, and Zig-zag), sizes, and colors, allowing for creative and functional designs. They are known for their high strength and resistance to heavy traffic loads.⁹
• Kerb Stones: These are robust, precast concrete units used to form the edge of sidewalks, roads, and parking lots. They serve to delineate traffic lanes, provide a physical barrier for safety, and aid in water drainage.⁹

The diversity of this product portfolio allows manufacturers to serve multiple needs within a single construction project, from structural walls and foundations to exterior landscaping and road infrastructure. However, this diversity also presents a challenge for standardization and quality control, particularly for the smaller, less-sophisticated producers in the market who may lack the technology to produce specialized items to consistent specifications.

4.0 Competitive Landscape and Key Industry Players

The concrete block industry in Bangladesh is characterized by a dual structure: a concentrated core of large, well-capitalized conglomerates leading the market, and a fragmented periphery of numerous smaller, often unregistered, producers. This structure shapes the competitive dynamics, influences quality standards, and presents both opportunities and challenges for market development.

4.1 Market Structure: Concentration, Competition, and Barriers to Entry

The market is currently in a state of competitive evolution. At the top end, a handful of major business groups have made significant investments in modern, automated production facilities and have established strong brand recognition. Four companies in particular—Concord Group, Mir Group, bti (Building Technology & Ideas), and Meghna Group of Industries—are considered the market leaders, collectively controlling an estimated 20% of the concrete block market.⁸

Beyond this concentrated core, the market becomes highly fragmented. There are over 300 companies operating in the sector, a significant number of which are small-scale and may not be officially registered.¹ The Department of Environment officially lists 164 registered factories but acknowledges the total number is likely over 250.⁵ This “long tail” of the market consists of producers who often use manual or semi-automatic machinery and cater to localized demand.¹⁶

Barriers to entry vary significantly with the scale of operation. Establishing a large-scale, fully automated factory is a capital-intensive undertaking, requiring an investment in the range of BDT 300-500 million (approximately US$2.5-4.2 million).¹⁶ This constitutes a significant barrier to entry for new players wishing to compete at the highest level. However, the barrier is considerably lower for smaller-scale production. A mid-size factory can be established for BDT 50-60 million, and a basic automated production unit can be imported from China for as little as BDT 50 million.¹⁶ This relatively low entry cost for smaller operations contributes to the market’s fragmentation.

4.2 Profiles of Leading Manufacturers

The market leaders are distinguished by their scale, technological adoption, and integration with the broader construction and real estate sectors.

Table 2: Comparative Analysis of Major Concrete Block Manufacturers

Manufacturer	Year Established (in Blocks)	Stated Production Capacity	Key Product Types	Market Positioning/Strategy	Known Revenue/Market Share
Concord Group	1998	~14.4 Million blocks/year (from two plants)	Hollow/Solid Blocks, Pavers, Kerbstones, Green Bricks	Pioneer and market leader in commercial production; emphasis on eco-friendly innovation.	Annual revenue ~BDT 360 Million; leader among automated factories.
Mir Group (Mir Concrete Block)	2004	N/A	Hollow/Solid Blocks, Pavers, Kerbstones, Pavement Tiles	Focus on high quality, technical standards, and customer service; extensive in-house lab testing and BUET certification.	Part of the leading group holding a collective 20% market share.
bti (Building Products)	2014	~6.5 Million blocks/year	Hollow/Solid Blocks, Unipavers, Pavement Tiles	Vertically integrated with a leading real estate developer; leveraging internal demand and focusing on eco-friendly solutions.	Part of the leading group holding a collective 20% market share.
Meghna Group of Industries	N/A	N/A	Solid Bricks, Hollow Blocks, Pavers, Kerbstones	Leveraging the scale and distribution of a massive conglomerate; positioning as a high-tech, end-to-end building materials provider.	Part of the leading group holding a collective 20% market share.

Note: Data compiled from sources ¹⁰, and.³⁸

• Concord Group: A true pioneer, Concord was the first to commercially produce concrete blocks in Bangladesh, setting up two high-capacity European plants in 1998.³⁴ With a stated capacity of 7.2 million blocks per year from each plant, they have the scale to serve major projects. They position themselves as innovators committed to environmentally friendly construction and are considered the revenue leader among the fully automated producers.¹⁶
• Mir Group: Through its subsidiary Mir Concrete Block, established in 2004, Mir Group has built a reputation for quality and technical excellence.³⁶ Their strategy emphasizes rigorous quality assurance, with an extensive in-house laboratory and a focus on achieving certification from the prestigious Bangladesh University of Engineering and Technology (BUET).¹⁰ They offer a wide portfolio of products and have supplied over 2,000 projects, highlighting their deep market penetration.³⁶
• bti (Building Technology & Ideas Ltd.): As a leading real estate development company, bti’s entry into block manufacturing in 2014 through its bti Building Products division represents a strategic vertical integration.³⁷ Their factory in Dhamrai has a significant annual capacity of 6.5 million blocks, which serves both their internal construction needs and the external market. Their brand is built on the promise of safer, stronger, and more durable building solutions.³⁸
• Meghna Group of Industries (MGI): One of Bangladesh’s largest conglomerates, MGI’s participation in the block market through its “Sonargaon Green Concrete Bricks and Blocks” brand brings formidable scale and distribution power.³¹ They leverage their vast business ecosystem to position their products as part of a comprehensive, high-tech building materials portfolio that includes cement and steel.³¹
• Other Notable Players: The competitive field is broadening. LafargeHolcim Bangladesh, a global cement giant, launched its “Holcim Block” brand in March 2024, signaling serious intent from major international players.⁴⁰ Other companies like NextBlock, Green Concrete Block, and various local producers also contribute to the market’s dynamism.⁸

4.3 Analysis of Small-Scale and Unregistered Producers

The proliferation of small-scale producers presents a significant challenge to the industry’s orderly development. These enterprises, often using manual or basic machinery, have emerged to fill gaps in the market, particularly in rural or fringe areas where transportation costs from major urban factories are prohibitive.¹⁶ While they increase the availability of blocks at a local level, their rise is a double-edged sword.

The primary concern is the potential for inconsistent and substandard quality. Without the capital for advanced machinery, automated batching, and proper curing facilities, the products from these smaller units may not meet the required specifications for strength, durability, or dimensional accuracy. This is compounded by a weak regulatory framework; there is currently no robust law to regulate the industry, conduct inspections, and enforce quality standards.¹⁶ Poor quality blocks from these producers could lead to structural issues and, more broadly, damage the reputation and consumer trust in concrete blocks as a whole, hindering wider adoption.⁴¹

4.4 Supplier and Distributor Network

The ecosystem supporting the concrete block industry includes a network of material and machinery suppliers. Reliable suppliers of finished blocks, such as Con-X Techno Limited and Shaitech, play a crucial role in the supply chain, ensuring that high-quality products are available to contractors and developers.⁹ Equally important are the machinery suppliers who provide the technology for production. Companies like QGM Zenith and others act as agents for international equipment manufacturers from China, Turkey, and Italy, providing access to the latest block-making technology and after-sales support.²⁷ This network is vital for both the establishment of new factories and the technological upgrading of existing ones.

5.0 The Decisive Battle: Concrete Blocks vs. Traditional Clay Bricks

The choice between concrete blocks and traditional clay bricks is the central decision facing the Bangladeshi construction industry. A comprehensive comparison reveals that while concrete blocks hold clear and often overwhelming advantages in environmental impact, functional performance, and lifecycle cost, the discussion around upfront cost and compressive strength is more nuanced and often subject to misconception.

5.1 A Comprehensive Cost-Benefit Analysis (Material, Labor, Lifecycle)

A critical analysis of construction costs demonstrates that using concrete blocks can lead to significant overall savings, despite potentially similar per-unit prices. The economic advantage stems from reductions in ancillary materials, labor, and long-term maintenance.

• Material and Construction Cost: While some sources suggest the price of a single block and an equivalent number of bricks can be similar or that blocks are outright cheaper, a true cost analysis must consider the entire wall system.¹⁰ A detailed techno-economic feasibility study reveals substantial savings when using concrete blocks due to a dramatic reduction in the required amount of mortar. For a 215-225 mm thick wall, brick masonry requires 4.63-4.85 cubic meters of mortar per 100 square meters, whereas a 200 mm hollow block wall requires only 1.39 cubic meters—a reduction of nearly 70%.¹⁸ Further savings are achieved during plastering. Due to the uniform size and shape of machine-made blocks, a standard 12 mm plaster coat is sufficient. In contrast, the irregular dimensions of traditional bricks often necessitate a thicker, 20 mm plaster coat to achieve a smooth surface, consuming significantly more material.¹⁸ Overall, construction with eco-friendly blocks can be 25-30% cheaper than with burnt-clay bricks when all factors are considered.⁴³
• Labor and Time: The larger size of concrete blocks compared to bricks allows for much faster laying, leading to significant savings in labor costs and a reduction in overall construction time.⁶ This acceleration of the construction schedule is a major economic benefit for developers.
• Lifecycle Cost: Concrete blocks offer superior long-term economic performance. They are not prone to salt efflorescence (the white powdery deposit common on brick walls), which eliminates a recurring maintenance cost.¹⁸ Furthermore, for applications like paving, interlocking concrete paver blocks have a much lower lifecycle cost than reinforced concrete (RCC) paving. They are easier and cheaper to repair, can be reused after underground utility work, and are more resistant to cracking, leading to substantial savings over the life of the pavement.¹⁸
• Government Pricing Anomaly: A significant distortion exists within the government’s own procurement system. The Public Works Department’s (PWD) official schedule of rates prices a single brick at BDT 13, while a solid concrete block—equivalent in volume to approximately five bricks—is priced at only BDT 40. A rational equivalent price would be closer to BDT 65 (5 x 13). This artificially low scheduled rate makes blocks appear less financially attractive in public tenders and discourages their use by government contractors, directly undermining the state’s own policy objectives.⁴⁴

Table 3: Cost-Benefit Analysis: 100 sq-m Wall Construction (5-inch/114-140mm thickness)

Cost Component	Traditional Brick Wall (114mm)	Hollow Concrete Block Wall (140mm)	Savings (BDT & %)
Material Cost (Units)	~5,500 bricks @ BDT 13/pc = 71,500	~1,161 blocks @ BDT 45/pc = 52,245	19,255 (27%)
Mortar for Laying (cu-m)	~1.85 m³	~0.85 m³ (estimated)	~54% reduction in volume
Mortar for Plastering (cu-m)	~4.0 m³ (20mm thick, both sides)	~2.4 m³ (12mm thick, both sides)	~40% reduction in volume
Total Upfront Cost	Higher	Lower	Significant Savings
Long-Term Benefits	Prone to efflorescence, higher energy costs	No efflorescence, better insulation (lower energy bills)	Lower Lifecycle Cost

Note: This is an illustrative analysis based on data from ¹⁶, and.¹⁸ Actual costs will vary based on local prices for materials and labor.

5.2 Technical Performance Showdown: Compressive Strength, Durability, and Weight

The technical comparison reveals distinct performance profiles, where a nuanced understanding is required to move beyond simplistic claims.

• Compressive Strength: This is the most contested attribute. While it is true that specialized, high-grade “Class A Engineering Bricks” can achieve compressive strengths (over 125 MPa) far exceeding that of standard concrete blocks (around 20 MPa), this is not a relevant comparison for most building applications.⁴⁵ For standard construction, first-class bricks in Bangladesh typically have a compressive strength of around 17 MPa (2500 psi).⁴⁶ Standard concrete blocks are required to meet minimums of 13.1-15 MPa (1900-2175 psi), with many products achieving much higher strengths.⁴⁷ The critical distinction, however, lies in the performance of the overall masonry system. Research shows that walls constructed with hollow concrete blocks exhibit higher structural strength than walls made from traditional brick masonry.⁴⁸ Therefore, focusing on the strength of the composite wall rather than the individual unit reveals the superior performance of block-based systems.
• Durability and Water Absorption: Concrete blocks demonstrate superior durability, particularly in terms of water resistance.¹⁰ The water absorption of quality concrete blocks is low and falls well within the limits prescribed by international standards like ASTM.⁴⁷ In contrast, traditional bricks are more porous, with a good quality brick expected to absorb up to 15-20% of its dry weight in water, making them more susceptible to moisture-related degradation.⁴⁶
• Weight: This is a decisive advantage for concrete blocks. Hollow and AAC blocks are significantly lighter than an equivalent volume of solid brickwork. An AAC block can be 50-60% lighter than a clay brick or standard concrete block.³² This reduction in weight translates directly into a lower dead load for the entire building. This is a crucial benefit, especially in the construction of multi-story and high-rise buildings, as it allows for smaller, more economical foundations, columns, and beams, leading to substantial cost savings on the overall structure.⁴

5.3 Functional Performance Comparison: Thermal & Acoustic Insulation, Fire Resistance

In terms of creating comfortable and safe living and working environments, concrete blocks offer definitive advantages over traditional bricks.

• Thermal Insulation: Concrete blocks, particularly hollow and AAC types, are excellent thermal insulators. The air-filled voids within hollow blocks and the millions of tiny air pores in AAC blocks significantly reduce heat transfer through the walls.⁹ This keeps interiors cooler in the summer and warmer in the winter, leading to greater comfort and significant reductions in energy consumption for heating and cooling. HBRI has even developed specialized “thermal blocks” incorporating expanded polystyrene (EPS) to achieve superior insulation performance.¹¹ It is estimated that block walls can reduce heat transfer by up to 40% compared to brick walls.⁵²
• Acoustic Insulation: The same properties that provide thermal insulation also make concrete blocks effective sound insulators. The mass and porous nature of the blocks help to absorb sound waves, reducing noise transmission between rooms and from the outside.⁶ This is a highly desirable feature in densely populated urban areas like Dhaka, which suffer from high levels of noise pollution.³³
• Fire Resistance: Concrete is an inherently non-combustible material, giving concrete blocks a high degree of fire resistance. This is a critical safety feature that provides added protection for occupants and property. Depending on their thickness and design, concrete block walls can offer fire resistance for several hours, a significant advantage over many other walling materials.⁶

5.4 The Environmental Scorecard: A Definitive Impact Assessment

The environmental comparison is unequivocal. The production of traditional clay bricks is a direct cause of severe, widespread environmental damage, while the production of concrete blocks offers a sustainable and far less harmful alternative.

• Traditional Clay Bricks: The industry is responsible for the large-scale depletion of fertile topsoil, threatening national food security. Its reliance on burning coal and wood makes it the country’s single largest source of air pollution and a major contributor to greenhouse gas emissions. The process is highly energy-intensive and fundamentally unsustainable.¹
• Concrete Blocks: The production process has a much lower carbon footprint and consumes significantly less energy. It avoids the use of agricultural topsoil and can incorporate sustainable and recycled materials like dredged river soil and industrial fly ash. The adoption of concrete blocks is a key strategy for Bangladesh to achieve its Sustainable Development Goals (SDGs) and mitigate the impacts of climate change.¹

Table 4: Technical Specification Showdown: Concrete Blocks vs. Traditional Clay Bricks

Parameter	Traditional Clay Brick (First Class)	Concrete Hollow Block (Standard)	Concrete Solid Block (Standard)	AAC Block	Winner/Key Advantage
Compressive Strength	17-35 MPa (highly variable)	13-20 MPa (as part of a stronger wall system)	15-25 MPa	3-5 MPa (non-load bearing)	Block System (for wall strength)
Dry Density (kg/m³)	1680–2220	1000–1400	1850–2050	550–660	AAC Block (Lightweight)
Water Absorption (%)	15–20%	<10%	<8%	<12%	Concrete Blocks
Thermal Conductivity (W/m.K)	0.6–1.0 (higher is worse)	0.3–0.5	0.5–0.7	0.11–0.16	AAC Block
Fire Resistance	Good	Excellent (2-4 hours)	Excellent (2-4 hours)	Excellent (up to 6 hours)	Concrete Blocks
Acoustic Insulation	Fair	Good	Very Good	Excellent	AAC Block
Environmental Impact	Very High Negative Impact	Low Negative Impact	Low Negative Impact	Very Low Negative Impact	Concrete Blocks

Note: Values are typical ranges compiled from sources ⁴, and.⁴⁷

6.0 The Regulatory Maze: Policy, Implementation, and Fiscal Realities

The transition to concrete blocks in Bangladesh is heavily influenced by a complex and often contradictory regulatory environment. While the government has established ambitious policies to promote the shift, a combination of flawed implementation, fiscal paradoxes, and bureaucratic hurdles has significantly blunted their impact.

6.1 The 2025 Mandate: An Ambitious Goal Meets On-the-Ground Reality

The cornerstone of the government’s strategy is a mandate, established in 2019, to achieve 100% usage of concrete blocks in all public construction and infrastructure projects by the fiscal year 2025.¹ This policy was designed as a phased transition, with escalating targets for block usage each year, starting with 10% in FY2020 and rising to 100% by FY2025.⁵ The intent was clear: to use the government’s immense purchasing power to create a guaranteed market for blocks, thereby stimulating private investment in production capacity.

However, the implementation of this mandate has been deeply problematic. Progress has been described as “modest,” and the industry remains “far from target”.⁵ Official records on the policy’s advancement are lacking, and key stakeholders, including block manufacturers, report that government instructions are widely ignored by various public agencies.⁵ The failure is so pronounced that the 2025 deadline is now widely considered “unrealistic,” with the government unofficially extending the timeline to the 2028-29 fiscal year.⁴¹ The reasons cited for this failure are numerous, including disruptions from the COVID-19 pandemic, a lack of vigorous promotional efforts, and poor coordination between key government bodies like the Public Works Department (PWD), the Local Government Engineering Department (LGED), and the Department of Environment (DoE).¹⁰

6.2 Government Incentives: Assessing the Efficacy of Tax Breaks and Green Financing

To encourage the private sector to align with its policy goals, the government has announced and implemented a series of incentives for concrete block manufacturers. These “carrots” are intended to de-risk investment and improve the financial viability of shifting from brick to block production. The key incentives include ⁵²:

• Tax Reductions: A reduction in the Value-Added Tax (VAT) on the import of machinery used for block production, as well as on the sale of the manufactured blocks themselves.
• Green Financing: Access to low-interest loans through the Bangladesh Bank’s green financing scheme, designed to support environmentally friendly industries.
• Simplified Licensing: Exemption from the requirement to obtain a brick burning license and a simplification of the environmental clearance process, with block manufacturing facilities being upgraded from the more stringent “orange-B” category to the less onerous “yellow” category.
• Technical Support: Promises of training, financial support, and the establishment of a one-stop service to help new entrepreneurs enter the market.⁵⁴

While these incentives are positive steps, their efficacy has been limited. Stakeholders report that they are insufficient to overcome the significant fiscal and bureaucratic hurdles that concurrently plague the industry.⁴¹ The incentives alone have not been powerful enough to catalyze the rapid, large-scale transition envisioned by the government.

6.3 The Policy Paradox: VAT Disparities and Other Fiscal Hurdles

A critical examination of the regulatory landscape reveals a fundamental policy incoherence. While one set of policies aims to promote concrete blocks, another set of fiscal and administrative policies actively penalizes them, creating a “policy paradox” that is arguably the single greatest impediment to the sector’s growth.⁴⁴

• The VAT Anomaly: This is the most glaring contradiction. The eco-friendly concrete block industry faces a standard VAT rate of 15%. In stark contrast, the highly polluting traditional brick industry enjoys a preferential fixed VAT system, where a kiln may pay a fixed annual tax of only Tk 0.5 million (approximately US$4,200).⁵ This disparity means that a modern, compliant block manufacturer can end up paying a tax bill of Tk 6-8 million, more than ten times that of its polluting competitor.⁴⁴ This fiscal structure actively disincentivizes investment in green technology by making the environmentally harmful option more profitable from a tax perspective.
• Ambiguous Tax Definitions: The problem is compounded by ambiguity in tax circulars. A government circular specifically exempts “hollow concrete blocks” from VAT, but makes no mention of solid blocks. As a result, manufacturers producing a range of eco-friendly products are forced to navigate a confusing system where they pay tax on some green products but not others.⁴⁴
• Customs and Procurement Hurdles: Beyond taxes, manufacturers face significant administrative barriers. Operators report harassment and inexplicable delays at customs when importing essential machinery and parts, such as production pallets, even when they possess the required technical certifications.⁴⁴ Furthermore, as noted previously, the PWD’s official schedule of rates sets an artificially low price for concrete blocks in public contracts, discouraging their adoption by government contractors.⁴⁴

This policy schizophrenia—promoting blocks with environmental policy while punishing them with fiscal and administrative policy—undermines the entire transition. The failure to meet the 2025 target is not simply a matter of market reluctance; it is a direct consequence of the government’s own conflicting and poorly coordinated regulations.

6.4 The Role of the Housing and Building Research Institute (HBRI)

Amidst the challenging regulatory environment, the state-run Housing and Building Research Institute (HBRI) has been a consistent and vital force for progress. For over four decades, HBRI has served as the nation’s premier R&D center for innovative and cost-effective building materials, playing a crucial role in developing and validating the technologies that underpin the concrete block industry.¹

HBRI’s contributions are extensive and multi-faceted:

• Product Development: The institute has been at the forefront of innovation, developing dozens of block types, including Cement Stabilized Earth Blocks (CSEB) using dredged river soil, high-performance thermal blocks using EPS insulation, and sandcrete blocks that utilize local aggregates.¹
• Cost Reduction Research: A key focus of HBRI’s work is to make sustainable materials economically viable. A major research thrust involves developing chemical admixtures that enable the use of cheap, locally available sand instead of expensive, imported stone dust or high-grade Sylhet sand, which could dramatically lower production costs.²³
• Standards and Training: HBRI is instrumental in setting technical standards for the industry, contributing to the Bangladesh National Building Code (BNBC), and providing essential training and technical support to manufacturers to ensure quality and promote best practices.⁵

HBRI’s work provides the technical foundation upon which a successful industry transition can be built, acting as a crucial bridge between policy goals and practical, on-the-ground implementation.

7.0 Critical Challenges and Operational Headwinds

Despite the strong environmental rationale and significant market potential, the concrete block industry in Bangladesh faces a formidable array of challenges. These range from demand-side market inertia and logistical complexities to supply chain vulnerabilities and shortages of skilled labor. Addressing these headwinds is critical for unlocking the sector’s full potential.

7.1 Overcoming Market Inertia: Consumer Awareness and Contractor Adoption

One of the most significant barriers is the deeply entrenched “longstanding habit” of using traditional clay bricks.⁴¹ For generations, bricks have been the default choice for construction, and shifting this mindset requires a concerted effort.

A key obstacle is the insufficient awareness among key decision-makers—including consumers, contractors, and even some engineers—about the multifaceted benefits of concrete blocks.⁴¹ Misconceptions about cost-effectiveness and strength persist. Many stakeholders are not fully aware of the lifecycle savings that result from reduced mortar and plaster usage, lower maintenance, and improved energy efficiency. Due to the widespread, nationwide availability of bricks, consumers and contractors often remain more inclined to use the familiar product rather than seek out a block supplier.⁴¹ This demand-side inertia creates a challenging environment for manufacturers, necessitating significant investment in education and marketing campaigns to inform the market and drive adoption.¹⁰

7.2 Logistical Bottlenecks and Transportation Costs

The physical challenge of moving heavy, bulky materials in a country with a congested and underdeveloped logistics network poses a major operational hurdle. Transportation costs are a primary determinant of the final delivered price of concrete blocks, and these costs can be substantial.²⁰

The problem is exacerbated by the current distribution of production facilities. Most large, modern block factories are concentrated around major urban centers like Dhaka. This limited nationwide footprint means that supplying projects in rural or distant regions incurs high transportation costs, which in turn discourages the use of blocks in those areas.⁴¹ This has created a market opening for small, local producers but also highlights a critical infrastructure gap.¹⁶ Bangladesh’s overall logistics system is described as “congested, unreliable, and unsophisticated,” leading to high costs and delays that affect the entire construction sector.⁵⁹ The country’s construction costs are already significantly higher than those in neighboring countries, and inefficient logistics is a major contributing factor.⁶⁰ This challenging logistical environment makes the establishment of a distributed network of production hubs a strategic necessity for making blocks cost-competitive across the country.

7.3 Raw Material Sourcing and Supply Chain Vulnerabilities

The industry’s supply chain is exposed to several significant vulnerabilities, primarily related to the sourcing of key raw materials. As discussed previously, the availability of these materials is a crucial challenge.¹²

• Aggregate Scarcity: The lack of natural stone deposits in Bangladesh makes high-quality stone aggregate a scarce and expensive resource. This scarcity is a fundamental constraint on the potential scale of the industry. It has been estimated that if the industry relies solely on stone-based aggregates, it may be unable to capture more than 25% of the total brick market, creating a hard ceiling on its growth.²⁵ This makes the research and commercialization of alternative aggregates, like dredged soil, a critical priority.
• Dependence on Imports: The entire cement industry, which is the lifeblood of concrete production, is almost completely dependent on imported raw materials, especially clinker and limestone.²⁶ This reliance exposes the block industry to the volatility of global commodity markets, currency exchange rate fluctuations, and international shipping costs and disruptions.
• Upstream Market Dynamics: The domestic cement industry itself faces challenges, including massive overcapacity (production capacity is more than double the annual demand). This situation leads to intense and unhealthy price competition, which can pressure manufacturers to cut costs, potentially by compromising on quality—a risk that could cascade down to the concrete block producers who rely on their cement.¹⁵

7.4 Ensuring Quality Control and Developing a Skilled Workforce

The final set of challenges relates to the quality of both the product and the labor required to use it effectively.

• Quality Control: The rapid emergence of numerous small, manual, and often unregistered block producers across the country poses a serious threat to overall market quality and reputation.⁵ Without proper regulation, inspection, and enforcement of standards, there is a high risk of substandard blocks entering the market. A single high-profile failure of a structure built with poor-quality blocks could severely damage consumer confidence and set back the adoption of the technology for years.¹⁶ This highlights the urgent need for a formal regulatory body and a universally applied set of national quality standards.
• Skilled Labor Scarcity: The transition from bricks to blocks requires a corresponding shift in the skills of the construction workforce. Blocks are larger, heavier, and have different laying characteristics than bricks, requiring greater care and technical skill for proper placement to ensure the structural integrity and aesthetic quality of the masonry.⁴¹ A shortage of masons trained in these techniques acts as a practical barrier to wider adoption, as contractors may be hesitant to use a material their workforce is not comfortable with.

These challenges are interconnected, creating a vicious cycle: low consumer demand disincentivizes investment in new factories, which leads to limited availability and high logistical costs, which in turn suppresses consumer demand. Breaking this cycle requires a holistic strategy that addresses demand, supply, logistics, and quality in a coordinated manner.

8.0 Strategic Outlook and Recommendations for Stakeholders

The future of the concrete block industry in Bangladesh is one of immense potential, but its trajectory is contingent on resolving the critical challenges and policy contradictions that currently constrain its growth. The strategic outlook can be viewed through several scenarios, each leading to a different outcome for the industry and the nation’s sustainable development goals. Based on this analysis, clear and actionable recommendations can be formulated for both industry manufacturers and government policymakers.

8.1 Future Growth Scenarios: Base, Optimistic, and Pessimistic Cases

• Base Case (Muddle-Through Scenario): This scenario assumes the continuation of the current status quo. The government’s public procurement mandate remains weakly enforced, the fiscal paradoxes (like the VAT disparity) are not resolved, and growth proceeds at a moderate but inconsistent pace. In this future, market share is captured slowly, driven primarily by large, environmentally-conscious private developers and a few compliant government projects. The industry grows, but falls significantly short of its potential and the government’s official targets.
• Optimistic Case (Policy Coherence Scenario): This scenario envisions a future where the government takes decisive action to align its policies with its stated goals. Key actions would include rationalizing the VAT structure to favor green materials, strictly enforcing the public procurement mandate with transparent monitoring, and accelerating the phasing out of illegal brick kilns. This would create a powerful, unambiguous market signal, leading to a surge in demand and triggering rapid private investment in new production capacity across the country. In this scenario, the industry could meet or even exceed the aggressive growth forecasts, such as the BDT 8 billion market size for hollow blocks by 2030, and play a transformative role in greening the construction sector.¹⁷
• Pessimistic Case (Stagnation Scenario): This scenario considers the possibility of waning political will, a worsening of the fiscal environment for blocks, or a major macroeconomic downturn that stalls the construction sector. Under these conditions, the transition could stagnate. The industry would fail to break out of its current niche, with production remaining at the low single-digit percentage of the overall brick market.⁵ This would represent a major failure to capitalize on the environmental and economic opportunity, leaving the country burdened with the negative externalities of the traditional brick industry for the foreseeable future.

8.2 Identifying Key Opportunities for Investment and Growth

The analysis reveals several strategic opportunities for investors and existing players to drive growth and capture value:

• Investment in Distributed Capacity: The most significant bottleneck is the mismatch between centralized production and nationwide demand. There is a clear opportunity to invest in modern, automated production facilities in underserved regions, breaking the cycle of high logistics costs and limited availability.
• Technology for Alternative Materials: Given the scarcity of traditional stone aggregates, there is a major opportunity for companies that can successfully commercialize technologies using alternative raw materials like dredged river soil and fly ash. Achieving cost-effective production with these materials would create a powerful and sustainable competitive advantage.
• Value-Added and Specialized Products: Moving beyond basic commodity blocks, there is a market for higher-margin, value-added products. This includes architectural blocks with superior finishes, high-strength interlocking pavers for heavy-duty industrial use, and specialized thermal and acoustic blocks for premium residential and commercial buildings.
• Development of a Skilled Workforce: Addressing the shortage of skilled masons presents a business opportunity. Companies could develop and offer certified training programs on proper block-laying techniques. This would not only improve the quality of construction but could also be a source of revenue and a way to build strong relationships with contractors.

8.3 Recommendations for Manufacturers: Strategy, Technology, and Market Positioning

To navigate the complex environment and capitalize on the opportunities, manufacturers should adopt a multi-pronged strategy:

• Strategy and Advocacy:

• Unified Lobbying: Strengthen industry associations like the Bangladesh Concrete Blocks & Pavers Manufacturer Society (BCBPMS) to create a unified voice for advocating policy changes. The top priorities should be the rationalization of the VAT structure and the revision of PWD scheduled rates to reflect the true value of block construction.⁴⁴
• Market Education: Invest collectively in sustained marketing and educational campaigns. Target architects, engineers, developers, and contractors with technical data that debunks myths about strength and highlights the lifecycle cost savings and performance benefits of block systems.
• Quality as a Differentiator: Proactively seek quality certification from credible bodies like BUET. Promote these certifications heavily to differentiate high-quality products from those of unregulated, low-cost producers, thereby building consumer trust.
• Technology and Innovation:

• Embrace Automation: Invest in automated production technology to enhance product consistency, reduce labor costs, and increase efficiency.¹²
• Innovate with Local Materials: Partner with research institutions like HBRI to pilot and scale up the use of alternative local materials. This will reduce dependence on costly and scarce traditional aggregates and build a more resilient supply chain.²³
• Market Positioning:
• Shift the marketing narrative from a simple “eco-friendly brick” to a “high-performance building system.” Emphasize the combined benefits of superior insulation, fire safety, acoustic comfort, structural efficiency (due to lower dead load), and long-term economic value.

8.4 Recommendations for Policymakers: Bridging the Implementation Gap and Fostering a Sustainable Ecosystem

The government holds the key to unlocking the industry’s potential. The following policy actions are critical:

• Ensure Policy Coherence: The “policy paradox” must be resolved immediately. The VAT structure must be reformed to create, at minimum, a level playing field between blocks and bricks, and ideally, to provide a clear fiscal incentive for the eco-friendly option. PWD scheduled rates must be revised to reflect the true, system-level cost and benefits of block construction.
• Enforce the Mandate: The public procurement mandate must be enforced rigorously and transparently across all government agencies and departments. A public-facing monitoring system should be established to track the percentage of block usage in government projects, creating accountability.
• Create a True Market: Accelerate the process of closing down illegal and non-compliant brick kilns. This is the most direct way to reduce the supply of the polluting incumbent and naturally stimulate demand for the legal, sustainable alternative.
• Build a Supportive Ecosystem:

• Increase funding and support for HBRI to continue its vital R&D and technical assistance work.
• Collaborate with industry and HBRI to establish and enforce a comprehensive set of Bangladesh National Standards (BDS) for all major types of concrete blocks to guarantee quality.
• Support the creation of vocational training programs for masons in partnership with technical colleges and industry players to address the skilled labor gap.
• Streamline and simplify customs procedures for the import of essential block-making machinery and parts to reduce delays and corruption.⁴⁴

By implementing these coordinated strategies, Bangladesh can successfully navigate its transition to a more sustainable construction sector, turning a pressing environmental challenge into a significant economic opportunity.

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