U. S. Silica - Competitors

U. S. Silica Competition

Now Viewing U. S. Silica's competition in: Nonmetallic Mineral Mining and Quarrying

Recent Developments

Nonmetallic Mineral Prices Increase - US producer prices for nonmetallic mineral mining and quarrying increased 13.2 percent in July 2008 compared to a year earlier. The increase is due partially to the rapid rise in energy costs, as high fuel prices can pressure profit margins for mineral mining and quarrying. The Energy Information Administration's short-term energy outlook, however, suggests that energy prices for the remainder of 2008 and into 2009 will remain stable relative to the large price spikes seen in 2007 and the first half of 2008.

Shipments of Nonmetallic Minerals Decline - US shipments of nonmetallic minerals fell nearly 9 percent in June 2008 compared to the same period in 2007. Overall, manufacturing shipments improved nearly 7 percent, and grew 8 percent when the troubled transportation sector is excluded. The continuing weakness of the US construction market is likely a significant factor for decreased nonmetallic mineral shipments.

Producers Face Import Pressures - US imports of nonmetallic mineral products increased 38 percent in the first six months of 2008 compared to the same period in 2007. The largest margins of growth were in countries with relatively low labor costs: Morocco, 163 percent; Venezuela, 134 percent; Chile, 114 percent; South Africa, 102 percent; and Mexico, 87 percent. US exports of nonmetallic minerals grew 9 percent.

Competitive Landscape

Demand is driven by construction spending and agricultural spending on fertilizers. Large companies have some economies of scale in purchasing and administrative systems, and have the production volume to supply large construction projects, such as new highways. Small companies typically own just one mine and compete in a local market based on superior customer service. Annual revenue per employee averages about $200,000.

Full Industry Overview For Nonmetallic Mineral Mining and Quarrying

Nonmetallic Mineral Mining and Quarrying Industry Forecast

from Hoover's/D&B subsidiary First Research

The output of US nonmetallic mining is forecast to grow at an annual compounded rate of 6.8 percent between 2008 and 2013.

Nonmetal Mining Growth Stabilizes

First Research forecasts are based on INFORUM forecasts that are licensed from the Interindustry Economic Research Fund, Inc. (IERF) in College Park, MD. INFORUM's "interindustry-macro" approach to modeling the economy captures the links between industries and the aggregate economy.