Industry Analysis & Industry Trends
As downstream construction markets recover, demand for products from the Stone Mining industry will go up. This growth is expected to come from demand for commercial and residential construction and, to a lesser extent, from road, street and highway construction. However, slow anticipated growth in the overall US economy and an increased focus by governments to reduce deficits could hinder demand from infrastructure construction... purchase to read more
Industry Report - Industry Investment Chapter
The Stone Mining industry has a high level of capital intensity, with capital expenditures averaging roughly $1.2 billion per year over the past five years, mostly for machinery and equipment purchases (excluding land and mineral rights). Because capital expenditures are significant, the industry's depreciation charges also absorb a considerable share of revenue at roughly 8.7%.
The ratio of labor costs to depreciation charges is indicative of an industry's labor and capital intensities, as this shows the amount of revenue absorbed by labor inputs and capital inputs into production. Overall, the ratio of wages to depreciation stands at 1 to 0.51; meaning that for every $1.00 spent on labor, about $0.51 is allocated yearly on capital investments... purchase to read more