Cement & Concrete Products Manufacturers

Industry Profile Report

Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters

Industry Overview Industry Structure, How Firms Opertate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.

Call Preparation Quarterly Insight, Call Prep Questions, Industry Terms, and Weblinks.

Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.

Industry Profile Excerpts

Industry Overview

The 4,000 cement and concrete manufacturers in the US produce cement, concrete, and concrete products for the construction industry. Major product categories include ready-mixed concrete; concrete pipe, brick and block; other types of concrete products (structural products, bridge girders); and cement. Large companies may be vertically integrated and own or lease quarries that contain raw materials (limestone, aggregates). Some large cement manufacturers have downstream concrete production operations.

Seasonal Demand

Demand for cement, concrete, and concrete products is seasonal, and drops during the winter months due to unfavorable weather conditions across much of the US.

Capital-Intensive Operations

Cement manufacturing is capital-intensive and requires a significant investment in plants and equipment.

Industry size & Structure

The average cement manufacturer employs 143 workers and generates about $99 million annually, while the average concrete or concrete product manufacturer employs 38-42 workers and generates $12-16 million annually.

    • The cement and concrete manufacturing industry consists of about 4,000 companies that employ about 192,400 workers and generate about $62 billion annually.
    • Ready-mixed concrete manufacturers account for about 54% of industry sales; cement manufacturing accounts for about 15%: concrete pipe, brick and block manufacturing are about 10%; and other concrete product manufacturing is about 21%.
    • About 91 US companies manufacture cement. The cement manufacturing industry is highly concentrated; the top 20 companies account for 91% of sector sales. The concrete product manufacturing industry is less concentrated; the top 50 companies account for 70% of industry sales. The ready-mix concrete industry is least concentrated with the top 50 companies accounting for 47% of industry sales.
    • Large companies include CEMEX, LafargeHolcim, Heidelberg Cement, and Martin Marietta Materials. Many large cement manufacturers are owned by foreign companies. Experts estimate 80% of cement clinker capacity is foreign-owned.
    • Many concrete and concrete product manufacturers operate within a limited geographical area due to transport issues and costs.
    • Jobs that consume concrete include commercial and industrial, residential, street and highway, and public works and infrastructure projects.
                                      Industry Forecast
                                      Cement & Concrete Products Manufacturers Industry Growth
                                      Source: Vertical IQ and Inforum

                                      Coronavirus Update

                                      Apr 26, 2022 - Cement Consumption Forecast to Slow
                                      • US cement consumption is forecast to ease from 4.1% growth in 2021 to 1.2% growth in 2022 and then decline 0.8% in 2023, according to Portland Cement Association’s (PCA) Spring 2022 Report. Rising interest and mortgage rates are expected to dampen demand for residential construction, a big driver of cement consumption over the past two years. Single family housing starts are forecast to fall by 7.1% in 2023. Other risk factors for cement consumption include the war in Ukraine and COVID-19, according to PCA. As COVID wanes and consumer confidence rises, pent-up demand for cement may be released, the report says.
                                      • An increase in construction activity, rising infrastructure developments, and reforms in the housing sector are driving growth of the decorative concrete market, which is expected to top $22.9 billion by 2028, according to a new forecast from Global Market Insights. Decorative concrete is used in construction for aesthetic purposes while still providing structural support for features like floors, driveways, and patios. The market for basalt decorative concrete, used in road construction, bridges, dams, and river wall applications, is forecast to approach $2.7 billion by 2028.
                                      • The prices that cement and concrete product manufacturers charge for their products is on a steep rise. In March, 2022, prices were up 12.4% from a year earlier. Since construction demand is strong, producers are able to pass their higher material costs to customers.
                                      • Total construction starts, a driver of demand for cement and concrete products, increased 9% in the first three months of 2022 compared to a year ago, according to Dodge Data & Analytics. Nonresidential building starts jumped 26% while residential starts fell 3% in March. “Nonresidential construction is benefiting from growing confidence that the worst of the pandemic has passed and the pipeline of projects waiting to start is increasing, suggesting the trend will continue”, states Richard Branch, chief economist for Dodge Construction Network.
                                      • The National Ready Mix Concrete Association (NRMCA) has been tracking its members’ efforts to reduce carbon output. In early March 2022, NRMCA announced a 21% reduction in carbon footprint among members in the past seven years. The industry is making progress in its plan to become carbon-neutral by 2050. Other goals include reducing the use of energy and water as well as waste. The industry is also looking to increase the amount of recycled materials, including fly ash and slag, used to manufacture new products. NRMCA, the Portland Cement Association, and the Global Cement and Concrete Association joined forces to develop the 2050 Roadmap to Carbon Neutrality to guide efforts.
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