Sand and Gravel Mining in the US Industry Market Research Report from IBISWorld has Been Updated

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Despite severe contractions during the recession, the industry has already begun to climb out of its trough; consequently, profit margins will start to grow and many operators will become vertically integrated, limiting the number of new companies entering the industry. For these reasons, industry research firm IBISWorld has updated a report on the Sand and Gravel Mining industry in its growing industry report collection.

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Increased demand from the housing market will boost industry revenue

The Sand and Gravel Mining industry principally mines and undertakes basic processing of sand and gravel used for construction aggregate and industrial applications, such as road building, landscaping, snow and ice control, and petroleum extraction. “The industry also undertakes the extraction and primary processing of clay and refractory products for use in downstream manufacturing applications,” IBISWorld industry analyst Agiimaa Kruchkin says. The volume of the domestic production of sand and gravel is expected to amount to 927.4 million metric tons in 2013, having declined at an average annual rate of 3.2% over the five years to 2013. This fall in production is largely due to the struggles of US construction markets during the recession.

Revenue is expected to grow 5.3% in 2013 to total $10.8 billion, yet it remains far below the record revenue of $12.7 billion generated in 2006. “The slump in downstream construction markets from 2008 to 2009 hurt demand for construction aggregates and materials for building products,” Kruchkin says. Consequently, weak demand resulted in a steep revenue drop in 2009, which followed a fall in 2008. Despite the recovery from 2011 to 2012, industry revenue is expected to have dropped at an annualized rate of 0.9% in the five years to 2013.

The Sand and Gravel Mining industry has a low level of concentration. Currently, the industry’s three largest companies are CRH PLC, HeidelbergCement AG and Martin Marietta Materials. Most of the industry is made up of smaller firms, as it is difficult to acquire the vast amounts of capital required to set up a network of facilities serving multiple geographic markets necessary to capture a large market share.

In the five years to 2018, industry revenue is forecast to rise. The demand for clay and refractory materials is projected to continue deteriorating in several downstream manufacturing industries. This decline will be offset by stronger demand in the downstream housing construction market in the latter part of the five-year period, strong growth in public sector investment in the highway and bridge construction market and the expected increase in private spending on home improvements as the US economy strengthens. For more information, visit IBISWorld’s Sand and Gravel Mining in the US industry report page.

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IBISWorld industry Report Key Topics

This industry comprises firms involved in mining and quarrying sand (construction and industrial) and gravel, along with clays, and ceramic and refractory minerals. Industry activity may include the beneficiation of these minerals by washing, screening and otherwise preparing the mined sand, gravel and clays.
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 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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