Cement Manufacturing in the US
Cement is used predominantly in concrete products, with demand from ready-mix concrete producers 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 and residential...
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| Format: | Market Research |
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| Language: | eng |
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| Summary: | Cement is used predominantly in concrete products, with demand from ready-mix concrete producers 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 and residential and nonresidential construction. Over the five years to 2024, demand has fluctuated alongside downstream residential construction activity, which boomed early on but then fell off amid interest rate hikes, causing the industry to endure an overall decline. Cement Manufacturing industry revenue has contracted at a CAGR of 1.1% over the past five years and is expected to total $9.9 billion in 2024, when revenue will jump by an estimated 1.4%. Profit has decreased over the past five years amid rising labor and purchase fees.
Due to the high shipping costs of cement and its inputs, the majority of cement bought in the United States is domestically produced. Customers view different types of cement as homogeneous, which causes cement manufacturers to compete heavily on price. To gain an advantage over other companies, manufacturers have focused on vertical integration to increase efficiency and lower prices. Despite these aforementioned cost-cutting measures, profit remained low in the years going into 2024 as increasing imports amid price-based competition dampened profitability, along with higher operational fees.
Downstream residential construction activity is set to increase over the outlook period, but this is due to the low base at which it will start. The sudden decrease and increase in interest rates caused the residential market to undergo a boom and bust cycle, which is now at the tail end and will eventually stabilize. Overall, the value of residential construction will remain depressed compared with the prior year despite showing year-over-year increases. A decline in the value of the US dollar will subdue import demand as foreign products become more expensive for domestic consumers. Domestic companies are well-positioned to provide cement for customers in the coming years and maintain strong market acceptance. Cement Manufacturing industry revenue is expected to expand at a CAGR of 2.1% to $11.1 billion over the five years to 2029. |
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