Cement Manufacturing in Canada Industry Market Research Report Now Available from IBISWorld

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Domestic demand from residential and nonresidential construction markets has grown stronger, helping this industry recover, but demand from the industry's top market, the United States, has fallen due to the recession, which has ultimately hurt industry profitability. For these reasons, industry research firm IBISWorld has added a report on the Cement Manufacturing industry to its growing industry report collection.

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The industry will return to growth due to recovering domestic construction markets.

After a rough patch during the economic downturn, in which revenue fell 7.7% in 2008 and 17.5% in 2009, the Cement Manufacturing industry bounced back strongly in 2010. “Stronger domestic demand from residential and nonresidential construction markets fueled the post-recession recovery,” says IBISWorld industry analyst Sean Windle. In addition, cement continues to replace lumber, ceramic, steel and other building materials on job sites due to its low cost and durability. These factors fostered strong growth following the recession, with revenue expected to increase at an annualized rate of 1.5% to $1.9 billion during the past five years, including a 1.3% gain expected in 2013.

In addition to weakened domestic demand, the economic downturn caused demand from the United States, the Cement Manufacturing industry's top foreign market, to plummet. An appreciating Canadian dollar and the lure of manufacturers in Mexico and China, which can produce and sell cement for lower prices, caused many US buyers to source cement elsewhere. “The one-two punch of lower domestic demand and lower foreign demand forced industry manufacturers to lower their prices, hurting profitability,” says Windle.

Despite a continued decline in demand from US buyers, the industry is forecast to grow strongly over the next five years. A sustained recovery in domestic construction markets and continued government funding for road and highway construction will drive this growth.

The industry has a medium level of market share concentration. The vast majority of Canadian cement manufacturers are owned by or are subsidiaries of foreign companies. For example, the top four Canadian cement companies (Lafarge, St. Marys Cement Group, Holcim and HeidelbergCement) are all owned by foreign companies.

For more information, visit IBISWorld’s Cement Manufacturing in Canada industry report page.

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IBISWorld industry Report Key Topics

This industry manufactures portland, natural, masonry, pozzolanic and other hydraulic cements. Cement manufacturing establishments may thermally treat (or calcine) earths; they may also mine, quarry, manufacture or purchase lime.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalization & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US and Canadian industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.

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Gavin Smith
IBISWorld
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