Cut Stone & Stone Product 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 1,980 stone products manufacturers in the US cut, shape and finish granite, marble, limestone, slate, and other types of stone for building projects and other uses. Firms may also work with composites, such as engineered stone or solid surface products. Applications for cut stone products include countertops, floors, and walls. Stone fabricators may have in-house staff dedicated to installation, rely on subcontractors, or use a combination.
Competition from Alternatives
Natural and manufactured stone competes with a variety of other materials, depending on the application.
Dependence on Imports
Stone fabricators are highly dependent on foreign suppliers for dimensional stone, with imports accounting for 82% of the US market, according to the US Geological Survey.
Industry size & Structure
The average stone products manufacturer operates out of a single location, employs 19 workers, and generates about $3.3 million in annual revenue.
- According to the Census, the cut stone and stone product manufacturing industry comprises about 1,980 companies that employ about 37,000 workers and generate $6.5 billion annually.
- According to the industry group the Natural Stone Institute (NSI), there are 9,689 dimension stone firms and 2,223 crushed stone firms in the US, employing about 86,000 and 42,000 workers, respectively. An NSI survey found that automated shops employ an average of 38 workers, while manual shops, which tend to be smaller operators, employ an average of 10 workers. The average sales volume was between $2 million and $3 million.
- The industry is fragmented; the top 50 companies account for 35% of industry revenue.
- Large, vertically-integrated firms, such as Coldspring Granite, extract, cut, and finish stone products. Most firms are small and serve a local market.
Industry Forecast
Cut Stone & Stone Product Manufacturers Industry Growth
Recent Developments
Dec 21, 2024 - New Highs for Prices, Employment
- Producer prices for cut stone and stone product manufacturers increased 3.1% in November compared to a year ago after rising 5.8% in the previous November-versus-November annual comparison, according to the latest US Bureau of Labor Statistics data. Prices reached a new high in November after relatively flat performance throughout most of 2024. Employment by other nonmetallic mineral products manufacturers, which includes cut stone and stone product manufacturing firms, grew 8.2% year over year in October to a record level, while average industry wages rose 4.7% YoY in November to $$27.43 per hour, BLS data show.
- Interest in silica-free and low-silica products is rising as concern over silicosis in the engineered stone industry – and among safety regulators – rises, Stone World reports. Silicosis – a potentially-deadly lung disease caused by inhaling crystalline silica – is a hazard for those who handle and manufacture engineered stone countertops and other stone products if proper safety precautions aren’t followed. Many in the industry, including Neolith and Aurea Stone, are investing in research and development to reduce or eliminate silica from their products. Neolith is focused on developing sintered stone technology using all-natural raw materials and offers a product portfolio with a silica content under 9%. Aurea Stone boasts an entire product line manufactured with crystalline silica-free materials, says its CEO. Neoliths’ CEO says he sees the industry leaving behind engineered stone and being replaced by superior materials with very low crystalline silica content and better technical properties.
- In the first high-profile case concerning engineered stone and lung disease, a jury in Los Angeles has awarded over $52 million in damages to a former fabrication worker, Stone Update reports. The jury in August sided with the plaintiff, a 34-year-old shop employee, in a trial involving two surface manufacturers – Caesarstone Ltd. and Cambria Company LLC – and one distributor, Color Marble Inc. of Diamond Bar, Calif. The plaintiff had worked at several shops in Southern California before being diagnosed with illnesses related to silicosis. He underwent a double-lung transplant and is likely to need another transplant, according to Stone Update. The case involved the use of engineered stone – quartz surfaces – and the high content of silica in the surfaces. Fabrication without suppressing dust coming from the material can fill the air with crystalline silica, which can cause the lung disease of silicosis if inhaled by improperly protected workers.
- US housing starts moderated in 2023 and 2024 compared with their brisk pace in 2021 and 2022 but are expected to be strong compared with their historical average for most of the next decade, according to the Congressional Budget Office’s September Outlook for Housing Starts. After 2024, housing starts – a demand driver for stone products including countertops and flooring – are expected to average 1.6 million per year over the next 10 years, according to CBO projections. Housing starts slow considerably during the 2030s and 2040s as population growth slows. The number of new households is expected to decline as the population ages, the number of deaths rises, and the number of new immigrants returns to a level more consistent with historical experience. Housing starts average 1.1 million per year from 2034 to 2043 and 0.8 million per year from 2044 to 2053 in the CBO’s baseline projections.
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