Built on rock: Increasing construction activity will boost industry demand

The Cement Manufacturing industry produces a wide range of cements, including Portland, hydraulic and aluminous cements, as well as cement clinker and hydraulic lime. Cement is used predominantly in concrete products, with demand from ready-mixed concrete accounting for a large percentage of revenue. Since concrete is used heavily in construction activities, the industry is dependent on investment in infrastructure, utilities, public works, residential and nonresidential construction. As residential and nonresidential construction activity have grown, demand for cement has risen. Consequently, industry revenue is expected to grow over the five years to 2018...purchase to read more.

Industry Statistics & Market Size
Revenue
$10bn
Annual Growth 13-18
5.7%
Forecast Growth 18-23
Profit
Employment
13,096
Businesses
227

Industry Threats & Opportunities

  • The majority of cement bought in the United States is domestically produced
  • Profit margins have benefited from increasing prices of cement
  • Funding from federal, state and local governments for highways is projected to grow
  • Industry Report - Industry SWOT Analysis Chapter

    The Cement Manufacturing industry is in the mature stage of its life cycle. In the 10 years to 2023, the industry's value added (IVA), which measures its contribution to the overall economy, is expected to rise at an annualized rate of 4.5%. This outpaces the 2.2% anticipated growth rate of US GDP during the same period. The industry's IVA growth outpaces US GDP growth because the construction sector's recovery has strongly bolstered the industry's performance. As a result, profit margins and capital expenditure have increased, sustaining the industry's growth.However, other characteristics support the fact that the industry is in the mature stage of its life cycle. The number of industry operators is fairly stable, despite rising revenue. Add...purchase to read more.

    Additional Insights for the Cement Manufacturing Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Cement Manufacturing Industry are

  • Access to high quality inputs
  • Ability to expand and curtail operations rapidly in line with market demand
  • Ability to control total supply on market
  • IBISWorld analysts also discuss how external factors such as Value of residential construction and Housing starts in the Cement Manufacturing industry impact industry performance..

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    What's in this report

    What is the Cement Manufacturing Industry?

    Operators in this industry manufacture cements, including Portland, natural, masonry and pozzolanic cements for use in construction. This industry does not produce lime (IBISWorld report 32741), which is an ingredient in cement, nor does it produce concrete (IBISWorld reports 32732, 32733 and 32739), which uses cement as an input.

    Industry Products
  • Portland & masonry cement
  • Clinker cement
  • Industry Activities
  • Portland cement
  • Blended and specialty cement
  • Masonry cement
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Value of residential construction
  • Housing starts
  • Value of private nonresidential construction
  • Government funding for highways
  • Trade-weighted index

  • Current Performance
  • Construction booms
  • Mergers and barriers
  • Rising profit margin
  • International markets
  • Chart: Revenue Growth

  • Industry Outlook
  • Increasing construction
  • Barriers deter new entrants
  • International trade opportunities
  • Table: Cement Manufacturing Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Cement Manufacturing Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Ready-Mix Concrete Manufacturing
  • Concrete Pipe & Block Manufacturing
  • Precast Concrete Manufacturing
  • Tool & Hardware Wholesaling

  • Key Selling Industries
  • Iron & Steel Manufacturing
  • Mineral & Phosphate Mining
  • Mining, Oil & Gas Machinery Manufacturing
  • Sand & Gravel Mining
  • Semiconductor Machinery Manufacturing
  • Stone Mining
  • Utilities

  • Products & Services
  • Portland & masonry cement
  • Clinker cement
  • Other
  • Chart: Cement Manufacturing Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Ready-mixed concrete producers
  • Other
  • Concrete product manufacturers
  • Exports
  • Chart: Major Market Segmentation for the Cement Manufacturing Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Wages
  • Depreciation
  • Rent and utilities
  • Marketing and other costs
  • Chart: Cost Structure Benchmarking – Sector vs Cement Manufacturing

  • Basis of Competition
  • Internal
  • External

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Cement Manufacturing Industry

  • Industry Globalization
    CEMEX SAB de CV, LafargeHolcim Group,
  • Table: CEMEX SAB de CV - financial performance
  • Table: LafargeHolcim Group - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Cement Manufacturing Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Cement Manufacturing Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Exports (2009-2023)
  • Imports (2009-2023)
  • Wages (2009-2023)
  • Consumer Confidence Index (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    Aggregates
  • Crushed materials including sand, gravel, stone, slag and other inputs that are used to make cement.
  • Cement Clinker
  • A small cinder lump formed by the heat processing of limestone, clay, bauxite and iron ore sand in a rotating kiln.
  • Hydraulic Cement
  • Any cement that will set and harden after being combined with water. Most construction cements are hydraulic.
  • Portland Cement
  • A general-purpose cement and the most common type used for making concrete, mortar and stucco. Produced using cement clinker and calcium sulfate to control the setting time.
  • Pozzolana Cement
  • A type of cement that contains fine siliceous materials. Often used in conjunction with Portland cement.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s industry research report on Cement Manufacturing can be used to help you understand the industry’s market size, growth potential and major companies. Five-year forecasts provide insight into the industry’s prospects, so you can make decisions with confidence. This information is perfectly suited to informing your business plans, pitch books, benchmarking and SWOT analysis.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Cement Manufacturing:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Cement Manufacturing market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Cement Manufacturing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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