The industry has benefitted from a growing focus on green buildings and energy efficiency in construction
Los Angeles, CA (PRWEB) June 17, 2013
The Mineral Product Manufacturing industry's main product is mineral wool insulation for buildings (i.e. fiberglass, rock wool and slag wool). A significant portion of industry products are also cut stones that are used in building construction. Therefore, industry performance is mainly linked to activity in residential and nonresidential construction. According to IBISWorld Industry analyst Hayden Shipp, “Severe downturns in these markets early in the five years to 2013 caused a sharp reduction in demand for industry products”. The industry's revenue losses during these years were mitigated by its diversification, since mineral product manufacturers derive a sizable portion of revenue from producing siliceous inputs for a range of other manufacturing industries. Likewise, gains late in the five-year period have been subdued in comparison with rebounds in construction. As such, industry revenue has fallen at an annualized rate of 1.3% during the five years to 2013. Revenue is expected to climb 1.8% to $16.1 billion in 2013. As producers of the most widely used building insulation material in the United States and world, mineral product manufacturers have benefited from the construction industry's increasing focus on green buildings and energy efficiency. Insulation is a main determinant of a building's energy costs and carbon footprint. Demand for high-performance buildings has grown significantly with rising energy costs and environmental awareness; this demand has spurred growth and product development in the industry's mineral wool segment. Additionally, industry operators have increased their focus on developing markets, a common trend across building materials manufacturers. Operators have made significant gains from growing markets in China and the Americas.
Industry revenue is expected to grow over the next five years. “Strong growth in construction markets will increase demand for the industry's main products”, says Shipp. Demand from manufacturers across the range of industries that buy siliceous inputs is also projected to rise overall. Recent high-growth markets and product segments (exports and greener insulation) will increase in their importance to industry revenue. Product development will accelerate in the industry's mineral wool segment in response to demand for insulation that improves energy efficiency and promotes the health of building occupants.
The Mineral Product Manufacturing industry has a medium level of market share concentration. The industry's largest players manufacture a range of building materials and have a national or global presence. During the past five years, major players have been active in both acquisitions and divestitures. As a result, market share concentration has remained fairly stable. Despite the industry's medium level of market share concentration, most industry firms are small businesses that employ fewer than 10 people and operate with a single facility.The degree of market share concentration varies across the individual segments of the industry. Cut stone and stone product manufacturers tend to be the smallest and most localized firms in the industry, due to the bulky nature of their products and the fact that they are mainly produced for regional (and not global or national) markets. The three largest players in the industry are Owens Corning Sales, Johns Manville, and CertainTeed Corporation.
For more information, visit IBISWorld’s Mineral Product Manufacturing in the US industry report page.
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IBISWorld industry Report Key Topics
The Mineral Product Manufacturing industry produces mineral wool insulation (i.e. fiberglass insulation, rock wool and slag wool) from siliceous materials such as glass, rock and slag. The industry also produces the following nonmetallic mineral products: dry mix concrete, mica products, stucco products and synthetic stones. Additionally, the industry cuts stones for building and calcines nonmetallic minerals.
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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