Cement Manufacturing in the US - Market Size, Industry Analysis, Trends and Forecasts (2024-2029)

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.

Trends and Insights

• As time passed, market volatility in the construction sector contributed to the industry's decline.
• Residential construction, in particular, started to fall in 2022 as a result of overbuilding in prior years and the rise in interest rates. Cement is used in most building and construction projects as it is a crucial component.
• Manufacturers of cement sell their products directly to concrete producers or distributors. Cement producers endure a significant obstacle due to the high cost of long-distance transportation of finished goods and raw materials.
• Strategic positioning is a primary focus. All cement manufacturers compete on price.
• Cement companies are under intense pressure to keep prices and costs low because many different types of cement are considered homogeneous.

Industry Overview

Industry revenue has declined at a CAGR of 1.1 % over the past five years, to reach an estimated $9.9bn in 2024.

Trends and Insights

Cement is mostly used in building-related materials Most construction projects, including those for infrastructure, utilities, public works, private nonresidential projects and residential projects, employ concrete. Because of this, the downstream construction markets significantly impact the cement manufacturing industry's revenue.

Industry outlook (2024-2029)

Market size is projected to grow over the next five years.

Trends and Insights

• Residential construction will inch upward, but will remain depressed compared with the prior period
• Interest rates will continue to remain high over the outlook period. Since home building and renovation projects take a relatively short amount of time to complete, the level of activity within the residential building market is highly susceptible to the price of financing.