Asphalt Manufacturing in the US
The Asphalt Manufacturing industry's performance closely follows developments in construction and road infrastructure building. The construction section has recovered fully over the past five years. However, volatile input prices have led to top-line selling prices remaining inconsistent over the past five years. This trend has led to revenue declines for industry operators during the majority of the five-year period. Industry profit, as measured by earnings before interest and taxes, is forecast to increase as sales price changes lag slightly behind input cost fluctuations. Crude oil, a key input used in the manufacture of asphalt products, drives the price of industry goods. As companies experienced significant declines in oil prices between mid-2014 and late 2016, they were forced to adjust prices downward, therefore lowering revenue for the industry. The industry is expected to expand over the five years to 2023. Government funding for highways is anticipated to increase, especially as improvements in state and local government budgets expand tax revenue available for investment in road infrastructure.
Industry operators manufacture paving and roofing materials, including asphalt and tar-paving mixtures and blocks, shingles, roofing cements and coatings. These products are produced from purchased asphaltic materials, paper mats and felts. Operators do not refine the crude petroleum or produce the paper mats and felts that comprise industry products. Companies that conduct such services are included in the Petroleum Refining (IBISWorld report 32411) and Paper Mills (32212) industries.
This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry key players and their market shares.