Volatile conditions in downstream markets have confined the industry's growth, but this trend is expected to change
New York, NY (PRWEB) March 25, 2014
The Ready-Mix Concrete Manufacturing Industry in Canada manufactures wet-batch concrete and delivers it to construction sites, where it is purchased, mixed and poured by a variety of contractors in downstream construction markets. According to IBISWorld Industry Analyst Amal Ahmad, “The main markets for ready-mix concrete are residential and nonresidential construction, utilities and infrastructure sectors and the oil and natural gas industries.” Concrete is increasingly popular in the construction materials market for its strength, durability and affordability. However, volatile conditions in downstream markets have confined the industry's growth to an estimated average annual rate of 0.2% in the five years to 2014. This includes anticipated growth of 2.1% during 2014, bringing the industry's revenue to $4.8 billion that year.
The annualized rate conceals oscillating performance, with recurrent shifts in year-on-year revenue. In turn, this owes to changing and often contradictory trends in downstream construction markets. Throughout, the industry has suffered the repercussions of a weak housing market as well as recurrently declining levels of activity in utilities and transport infrastructure construction. “Bad weather conditions, including floods in 2011 and 2013, halted various construction projects further, compounding challenges for operators,” says Ahmad. Conversely, performance has been buoyed by accelerating construction of nonresidential spaces such as offices, shopping centres and educational facilities since 2011. In addition, the Keystone Pipeline project, though operational intermittently since 2010, has been a major boost for operators since concrete is key to the pipeline's construction. Overall, the result has been positive, though weak, growth in the Ready-Mix Concrete Manufacturing industry.
In the five years to 2019, the industry is expected to benefit from improved utility and transport infrastructure construction and from the anticipated resumption of the Keystone Pipeline project. However, residential construction is likely to remain weak while nonresidential construction slows down. Adverse weather conditions may also sidetrack important construction projects and curtail demand for ready-mix concrete. All things considered, IBISWorld expects the industry to grow at an improved, albeit modest rate during the five years to 2019.
For more information, visit IBISWorld’s Ready-Mix Concrete Manufacturing in Canada industry report page.
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IBISWorld industry Report Key Topics
The Ready-Mix Concrete Manufacturing industry manufactures wet-batch concrete, in a facility or in transit, and delivers it to construction sites in a plastic and unhardened state. The batches are ready for mixing and pouring, although this is undertaken by purchasers, not by industry operators. Also excluded from industry operations is the production of dry-batch concrete.
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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