Industry Analysis & Industry Trends
Building growth
Despite severe contractions during the recession, the industry has already begun to climb out of its trough. The recovery in the housing construction market will support the industry's expansion throughout the next five years. Growth in the nonresidential market will also boost demand for the industry's products. Governmental infrastructure investment, though, is expected to slow. With profit margins growing, many operators will become vertically integrated, which will limit the number of new companies entering the industry... purchase to read more
Industry Report - Starting a New Business Chapter
Relatively high barriers inhibit the entry of new competitors into this industry. Abundant supplies of low-value construction sand and gravel deposits are located throughout the United States, but high transport costs limit the market threshold serviced by individual mines and quarries. Additionally, the existing players hold a dominant position in most regional markets.
The principal barrier to the entry of new competitors is the degree of vertical integration of the major players in this industry (e.g. Vulcan Materials and Martin Marietta), which typically hold substantial interests in the downstream construction materials manufacturing and distribution industries (e.g. cement, asphalt, and concrete products)... purchase to read more