Los Angeles, CA (PRWEB) June 22, 2012
Over much of the past decade, environmental concerns have helped shed light on the importance of developing and utilizing sustainable materials during the construction of homes, buildings and structures. States, counties and cities have tightened building codes to promote the use of energy-efficient products and sustainable materials, which have driven growth for the Sustainable Building Material Manufacturing industry, says IBISWorld industry analyst Andrea Alegria. Tax subsidies and operating cost savings have also supported this trend, especially in light of the rapid rise in Leadership in Energy and Environmental Design (LEED) certified buildings. A LEED-certified building adheres to specific standards related to energy savings, water efficiency, carbon-emissions reduction and indoor environment quality. LEED buildings are also evaluated on the materials that are used during construction with an emphasis on sustainable products.
Technological advances have helped drive an increase in demand for sustainable materials; products are now more affordable and more readily available. Most notably, says Alegria, “Synthetic products used to mimic wood, stone or other natural resources are often cheaper and easier to install and maintain.” Additionally, as technology advances, these products increasingly feel and look like real wood or stone products, which has made them more popular. As a result of these trends, the demand for sustainable materials has increased dramatically over the past five years, even though overall construction has fallen. Consequently, the Sustainable Building Material Manufacturing industry's revenue is expected to rise at an average annual rate of 7.3% to about $20.6 billion in the five years to 2012, including a 30.0% jump in 2012. However, no single firm in the industry controls a significant share of the market. Most companies are major building material manufacturers whose industry-specific operations are relatively minor.
Over the five years to 2017, the industry is expected to experience exceptional growth. All types of construction projects and activities will drive the use of sustainable materials, as property owners, developers and regulators put a greater emphasis on cost savings, environmental protection and energy conservation. Industry growth will also be supported by a recovery in overall construction activity as demand for new projects rebounds from the aftermath of the subprime mortgage crisis and real estate bubble collapse. For more information, visit IBISWorld’s Sustainable Building Material Manufacturing in the US industry report page.
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IBISWorld industry Report Key Topics
This industry produces sustainable building materials used during the construction and renovation of all types of building structures. Sustainable building materials are composed of renewable (or “green”) resources, rather than nonrenewable resources. Green materials are more efficient than traditional products because they require fewer resources to produce. Sustainable materials also reduce building energy needs and water consumption.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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