01-08-2013, 12:46 PM
Precast Concrete Industry Trends, Value Drivers, Market Valuations, & Exit Strategies
Concrete Industry.pdf (Size: 156.6 KB / Downloads: 152)
Cement & Concrete Manufacturing
The cement and concrete manufacturing sector includes: cement
manufacturing, ready-mix concrete manufacturing, concrete pipe,
brick, and block manufacturing, and other concrete product
manufacturing.
Output in the cement and concrete manufacturing sector is expected
to grow at an annual compounded rate of 3.2% between 2006 and
2009. The growth rate in 2006 is expected to decelerate
significantly from the growth rate in 2005.
Brick and Block Manufacturing
The U.S. brick and block industry is currently a $13.9 billion-a-year
industry.
– The industry is segmented into clay brick and concrete block and brick.
– Clay brick accounts for approximately 75% of total brick and block demand.
Demand for concrete brick and block is expected to increase 3.9% per
year until 2010 as nonresidential construction continues its upswing.
Demand for clay brick is expected to decrease 0.4% due to an
expected decrease in demand for residential construction activity.
Precast Concrete Industry
Growth rates in the precast concrete industry recovered between 2002
and 2005 after declining demand in 2000 and 2001.
– Much of the decline in 2000 and 2001 was attributable to the decline in
nonresidential construction.
Growth in the industry is expected to continue through 2010.
– Top three growth markets are oil infrastructure, highways and bridges, and
nonresidential buildings.
Regulatory Environment
Increased inspections of precast facilities by OSHA expected.
U.S. Army Corps of Engineers mandates all precast concrete for
drainage structures are to come from NPCA certified plants.
Complete repeal of the Continued Dumping and Subsidy Offset Act
(also known as the Byrd amendment) expected within the next two
years.
Tariffs on Mexican cement are expected to drop to $3 per metric ton
from $50 per metric ton after a pact between the U.S. and Mexico
settled a 16-year dispute. By 2009, the tariff is expected to be
eliminated completely.