Recovery of US steel production and environmental regulation in other manufacturing industries have benefited lime manufacturers
Los Angeles, CA (PRWEB) August 14, 2013
Over the past five years, the Lime Manufacturing industry has been incredibly resistant to the effects of the economic downturn. Demand for lime from traditional downstream markets fell during the recession, as construction activity slowed significantly. But “thanks to the broad range of uses for lime and its expanding applications in the pollution abatement market, the industry has managed to grow at a time when most other manufacturing industries faltered,” says IBISWorld industry analyst Sean Windle. To this point, although industry revenue fell sharply in 2009, revenue has averaged annual growth of 2.3% in the five years to 2013, including growth of 0.9% expected in 2013, which brings total industry revenue to $2.3 billion.
Since 2010, the Lime Manufacturing industry has experienced significant growth due to a rebounding steel industry and growing environmental regulations in other manufacturing industries. In 2010 alone, the Iron and Steel Manufacturing industry (IBISWorld report 33111), which is the largest consumer of lime products, grew in the double digits, giving a significant boost to US lime producers. According to Windle, increased regulation has also boosted demand since the recession because manufacturing industries increasingly use flue gas desulfurization to cut down on CO2 emissions.
The Lime Manufacturing industry has a medium level of market share concentration, due in part to a trend toward consolidation since the mid-1990s and especially over the past five years. Prominent examples of industry consolidation are Carmeuse North America acquiring Oglebay Norton, and Mississippi Lime Company acquiring Gallatine Materials in 2008. Other major companies include Martin Marietta Materials, Lhoist Group, US Lime & Minerals and Graymont Inc.
The outlook for the Lime Manufacturing industry is positive. During the period, the industry will benefit from substantial gains in the level of construction activity, particularly residential construction. Industry revenue and profit will also be supported by steady increases in demand from downstream manufacturing and energy production industries. For more information, visit IBISWorld’s Lime Manufacturing in the US industry report page.
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IBISWorld industry Report Key Topics
The Lime Manufacturing industry comprises establishments that manufacture lime from calcitic limestone, dolomitic limestone or other calcareous materials, such as coral, chalk and shells. Lime manufacturing establishments may mine, quarry, collect or purchase the sources of calcium carbonate.
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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 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.