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, and bricks. Major companies include Martin Marietta and Vulcan Materials (both based in the US), as well as Anhui Conch (China), Cemex (Mexico), CRH (Ireland), HeidelbergCement Group (Germany), and Holcim (Switzerland).

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 and by serving small or rural markets. The US industry is fragmented: the top 50 companies account for about 45% of industry revenue.

PRODUCTS, OPERATIONS & TECHNOLOGY

Major products include ready-mix concrete, cement, concrete block, brick, and pipe, and concrete items like beams, girders, and wall panels. Ready-mix concrete accounts for about 50% of industry revenue, followed by Portland cement for about 15% and precast concrete products for about 10%. Other products include precast concrete for prefabricated building systems.