Cement & Concrete Product Manufacturing

Cement & Concrete Product Manufacturing - Brief Excerpt from Industry Overview Chapter:

Companies in this industry manufacture cement, ready-mix concrete, and concrete products such as blocks, pipes, bricks, walls, and girders. Major companies include Ash Grove Cement Company, Texas Industries, US Concrete, and Vulcan Materials (all based in the US), as well as Cemex (Mexico), CRH (Ireland), Holcim (Switzerland), and LaFarge (France).

Global cement demand is expected to rise 5.3 percent per year through 2015, reaching 4 billion tons with a value of more than $330 billion, according to Freedonia Group. A rebound in worldwide construction demand as economies recover from the downturn of the late 2000s is expected to help drive growth. China and India consume the majority of global cement output.

The US cement and concrete product manufacturing industry includes more than 5,000 companies with combined annual revenue of about $40 billion. The industry includes about 150 cement manufacturing companies, 2,500 ready-mix concrete manufacturing companies, and about 2,700 companies that make concrete block, brick, pipe, and other concrete products. High growth is forecast for the next two years. Key growth drivers include increased construction activity and more efficient manufacturing processes.

COMPETITIVE LANDSCAPE

Demand is determined primarily by nonresidential and residential construction activity. The profitability of individual companies is strongly dependent on efficient operations, as products are commodities and companies compete chiefly on price. Large companies enjoy economies of scale in purchasing and the ability to invest in technologies that improve efficiency. Small manufacturers can compete through superior customer service...