Revenue has been falling due to negative trends in downstream construction markets.
New York, NY (PRWEB) January 07, 2014
The Stone Mining industry is firmly cemented in the US economy, producing materials for various construction industries. The industry mines a wide variety of rock, including granite, limestone, sandstone, basalt, trap rock, pumice and talc. The bulk of these rocks is crushed and transported for use in downstream construction and manufacturing markets. Crushed stone is used as an aggregate in foundations for infrastructure and buildings or as road base. Crushed stone is also an input into cement, concrete products and personal consumer goods. The dimension stone produced by this industry includes high-quality cut and processed stone products, such as marble and slate, which are used in building applications like kitchen countertops and pavers.
According to IBISWorld estimates, total US stone production is expected to amount to 1.3 billion metric tons in 2013, using data sourced from the US Geological Survey having fallen over the past few years from 1.5 billion metric tons in 2008. The Stone Mining industry accounts for about 90.0% of the volume of domestic stone production. The remaining 10.0% is produced by sand and gravel aggregate producers, road construction companies and firms operating in the nonmetallic mineral product industries (e.g. lime or cement manufacturing).
Over the five years to 2013, industry revenue has grown at an estimated annualized rate of 0.3%, influenced by negative trends in downstream construction markets. According to IBISWorld Industry Analyst James Crompton, “The dramatic slump in the housing market since 2007 and the subsequent recession significantly dampened demand for stone products.” In 2009, for example, revenue plunged 16.1% as most of the industry's major markets cut demand. Infrastructure construction, however, was not hit as hard as housing and commercial construction, making it even more dominant as the industry's largest major market. Following mostly negative performance since the recession, total industry revenue is expected to climb 6.5% to $15.1 billion in 2013 as a result of reviving downstream construction demand.
Over the five years to 2018, industry revenue is forecast to rise. “This growth is expected to come from recovering demand for commercial and residential construction and, to a lesser extent, from road, street and highway construction,” says Crompton. However, slow anticipated growth in the overall US economy and an increased focus by governments to reduce deficits could constrain demand from infrastructure construction.
For more information, visit IBISWorld’s Stone Mining in the US industry report page.
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IBISWorld industry Report Key Topics
The Stone Mining industry comprises firms that develop mine sites; mine and quarry dimension stone (i.e. rough blocks or slabs of stone); mine and quarry crushed and broken stone, such as granite and limestone; or beneficiate stone by crushing, grinding, washing, screening, pulverizing and sizing.
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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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.