Cement & Concrete Product Manufacturing Industry Overview

Excerpt from Cement & Concrete Product Manufacturing Report

The US cement and concrete product manufacturing industry includes more than 5,000 companies with combined annual revenue of about $40 billion. Major companies include Ash Grove Cement Company, Texas Industries, US Concrete, and Vulcan Materials, as well as the US operations of foreign companies such as Cemex (Mexico), CRH (Ireland), Holcim (Switzerland), FCC (Spain), and LaFarge (France). The industry includes about 150 cement manufacturing companies, 2,500 ready-mix concrete manufacturing companies, and about 2,700 companies that make concrete block, brick, pipe, and other concrete products. The industry is concentrated: the top 50 companies account for half of industry revenue.

Competitive Landscape

Demand is determined primarily by nonresidential and residential construction activity. The profitability of individual companies is strongly dependent on efficient operations, as products are commodities and companies compete chiefly on price. Large companies enjoy economies of scale in purchasing and the ability to invest in technologies that improve efficiency. Small manufacturers can compete through superior customer service and by serving small or rural markets.

Products, Operations & Technology

Major products include ready-mix concrete (about 60 percent of industry sales), cement (20 percent), concrete block and brick (10 percent), and items such as concrete beams, girders, pipe, and wall panels.