Industry Analysis & Industry Trends
The recession took a heavy toll on nearly all of the Gypsum Product Manufacturing industry's downstream markets. However, construction activity revived in 2012 and the industry returned to growth. Demand for gypsum products from residential and nonresidential construction markets is forecast to continue growing strongly in the five years to 2018. With housing starts expected to increase and the value of nonresidential construction growing, demand for gypsum products will remain healthy in the near future.
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Industry Report - Industry Investment Chapter
The industry has a high level of capital intensity because production processes must be advanced enough to ensure that standards for strength and fire resistance are met. Equipment in a gypsum wallboard plant includes kilns, grinding and mixing equipment and paperboard layering equipment. Gypsum research centers have a large amount of testing equipment that measures compression strength and fire resistance among other attributes. Manufacturers may also own quarries and recycled paperboard facilities, which require further expenditures on machinery. In 2013, capital intensity – the measure of the amount of money spent on machinery, equipment and other capital expenses for every dollar spent on wages – is expected to be $0.52... purchase to read more