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AAC WORLDWIDE %u2022 3.2025 PRODUCTION TECHNOLOGY 55Competitiveness and market analysisAnother important deliverable of Phase 1 is the competitiveness analysis %u2013 it evaluates how the client%u2019s future AAC products stack up against existing alternative solutions in their target region. Aircrete can support analyzing the overall market of the relevant building materials to assess the potential for AAC and determine the starting capacity of the envisaged Aircrete factory. Furthermore, together with the client, Aircrete collects market information on common competing materials %u2013 such as traditional clay bricks or hollow-core cement blocks %u2013 including the full installed cost per square meter of wall, not just the material price. Aircrete calculates the installed cost per square meter for the client%u2019s own product, factoring in the already calculated production cost, additional materials use and labor. This allows for a direct, apples-to-apples comparison with other wall systems. Furthermore, the Aircrete building application specialists also ensure that the standards and requirements of the client%u2019s local market are fulfilled when using AAC as an alternative.Based on these insights, the envisaged sales price of the client%u2019s AAC products can be strategically adjusted to allow for healthy financial margins while at the same time ensure market competitiveness. In addition, this analysis helps shape the client%u2019s product portfolio. Depending on which wall solutions offer the best cost-to-performance ratio, Aircrete and the client determine whether the market would be better served by blocks or panels %u2013 and what dimensions and formats would be most commercially viable. By integrating technical parameters with real-world pricing and usage data, the competitiveness analysis helps position the client%u2019s future AAC products exactly where the market needs it.Example of a comparison of complete wall installation costsExample of an AAC production cost breakdown