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 Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.
Call Preparation Call Prep Questions, Industry Terms, and Weblinks.
Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.
Industry Profile Excerpts
Industry Overview
The 3,700 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 3,700 companies that employ about 194,600 workers and generate about $64 billion annually.
- Ready-mixed concrete manufacturers account for about 54% of industry sales; cement manufacturing accounts for about 14%: concrete pipe, brick and block manufacturing are about 10%; and other concrete product manufacturing is about 22%.
- 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
Recent Developments
Nov 28, 2022 - FMC Launches Cement and Concrete Sector
- At the 2022 United Nations Climate Change Conference COP27 in November, the First Movers Coalition (FMC) launched its cement and concrete sector, with newly announced companies (ETEX, General Motors, Ørsted, RMZ Corporation, and Vattenfall) committing to purchase at least 10% near-zero carbon cement and concrete per year by 2030. The FMC is a coalition of 67 member companies that aims to decarbonize the heavy industry and long-distance transport sectors responsible for 30% of global emissions. The inclusion of the cement and concrete sector is highly significant as cement is the second most-used product on earth after water and is responsible for about 7% of global emissions. Concrete and cement products are in high demand in developing countries and their use is set to rise.
- Manufacturing companies are facing a potential shortage of diesel fuel that has driven up the price to a record premium over gasoline and crude oil, according to The Wall Street Journal. While the price of gasoline is up about 14% so far this year, the price for diesel has risen by about 50%, to $5.35 a gallon, according to energy price data from AAA/OPIS. The gains widened the gap between the two fuels to an all-time high of $1.61, versus 23 cents a year ago. Dwindling stocks, the war in Ukraine, severe weather, and other disruptions to the global energy markets are behind the widening gap, WSJ reported in November 2022. Wholesale diesel, delivered into New York harbor, traded at a record premium to crude oil in October, according to the Energy Information Administration, which also reported the country had only 25 days of diesel in reserve, the lowest since 2008.
- A shortage of cement mix used to produce concrete is causing construction delays and causing prices to rise, according to WPTA News. In northeast Indiana and northwest Ohio cement mix shortages are causing some construction projects to fall behind schedule and run over budget. Homeowners also are having a hard time finding someone to pour concrete for small projects. The concrete shortage isn’t expected to resolve any time soon, which will mean continued delays for major construction projects and personal home improvements alike, WPTA reported in September 2022. The Portland Cement Association in September reported cement shortages in 18 states and attributes the tight supply to increases in global product demand and domestic residential construction.
- Cement manufacturing accounts for about 8% of global CO2 emissions, versus about 2.8% of total global emissions from aviation, according to a 2020 report from the International Energy Agency (IEA). To comply with the Paris Agreement, scientists say the cement industry will need to decrease its annual emissions by at least 16% by 2030. However, between 2002 and 2021, the industry’s global emissions doubled from 1.4 billion tons of CO2 to nearly 2.9 billion tons, according to data from the CICERO Center for International Climate Research and the Global Carbon Project. According to the IEA, the cement sector is the third-largest consumer of energy and the second-largest emitter of carbon dioxide among industrial players.
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