Drying up: Slow growth in construction markets is forecast to limit revenue growth

The Cement Manufacturing industry in Canada produces a variety of cement products that are primarily used for making concrete, mortar and stucco. Industry products are used in a range of construction projects, and as a result, industry demand and overall performance are linked to the level of activity in residential and nonresidential construction markets domestically and in the United States, the industry's largest trading partner. Infrastructure construction, which relies heavily on concrete, also generates demand for cement products. Over the last five years, mixed demand from domestic construction markets has been counteracted by strong growth in US construction markets. The Cement Manufacturing industry is highly concentrated and dominated by several multinational corporations...read more.

Industry Statistics & Market Size
Revenue
$2bn
Annual Growth 13-18
2.6%
Forecast Growth 18-23
Profit
Employment
2,249
Businesses
35

Industry Threats & Opportunities

  • Demand is closely correlated to the level of activity in both residential and nonresidential construction markets
  • Trade figures for the industry are constrained by the fact that cement is a low-value added product
  • The industry will continue to experience a boost in exports from the United States
  • Industry Report - Industry Locations Chapter

    Proximity to raw material deposits, as well as downstream markets, largely influences the location of cement plants in Canada. Cement can be expensive to transport long distances via road and water freight. Therefore, industry manufacturers tend to locate as close as possible to domestic buyers. With regard to location, many industry manufacturers also have operations along the US border to enable the lowest cost possible for the transportation of exported cement into the United States.The provinces with the largest numbers of industry establishments are also the four most populous provinces, and therefore have the largest construction markets. Ontario has the highest industry concentration, with 36.6% of industry establishments. Quebec (23.9%), British Columbia (12.7%) ...purchase to read more.

    Additional Insights for the Cement Manufacturing Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Cement Manufacturing Industry are

  • Access to high quality inputs
  • Proximity to key markets
  • Upstream vertical integration (ownership links)
  • IBISWorld analysts also discuss how external factors such as Value of residential construction and Value of nonresidential construction in the Cement Manufacturing industry impact industry performance..

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    What's in this report

    What is the Cement Manufacturing Industry?

    This industry manufactures Portland cement, other hydraulic cements, cement clinker and specialty cements. Construction markets demand cement, and it is also used as an ingredient into concrete, mortar and stucco manufacturing. Upstream quarrying operations and downstream concrete mixing operations are excluded from this industry.

    Industry Products
  • Nonwhite Portland cement
  • White Portland cement
  • Other hydraulic cements
  • Cement clinkers
  • Aluminous cement
  • Industry Activities
  • Portland cement
  • Other hydraulic cement
  • Clinker
  • Aluminous cement
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Value of residential construction
  • Value of nonresidential construction
  • Canadian-dollar effective exchange rate index
  • Government expenditure and investment

  • Current Performance
  • Flat domestic construction markets
  • International trade
  • Industry structure
  • Chart: Revenue Growth

  • Industry Outlook
  • Mixed market demand
  • Continued consolidation
  • Table: Cement Manufacturing Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Cement Manufacturing Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Construction In Canada
  • Concrete Contractors in Canada
  • Ready-Mix Concrete Manufacturing in Canada

  • Key Selling Industries
  • Mineral & Phosphate Mining in Canada
  • Stone Mining in Canada
  • Utilities In Canada

  • Products & Services
  • Nonwhite Portland cement
  • Cement clinkers
  • White Portland cement
  • Other hydraulic cements
  • Aluminous cement
  • Chart: Cement Manufacturing Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Ready-mix concrete contractors
  • Export markets
  • Concrete product manufacturers
  • Other contractors
  • Chart: Major Market Segmentation for the Cement Manufacturing Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Rent and utilities
  • Wages
  • Depreciation
  • Other costs
  • Chart: Cost Structure Benchmarking – Sector vs Cement Manufacturing

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Cement Manufacturing Industry

  • Industry Globalization
    LafargeHolcim, HeidelbergCement Group, St. Marys Cement,
  • Table: LafargeHolcim - financial performance
  • Table: HeidelbergCement Group - financial performance
  • Table: St. Marys Cement - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Cement Manufacturing Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Cement Manufacturing Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Exports (2009-2023)
  • Imports (2009-2023)
  • Wages (2009-2023)
  • Value of residential construction (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Cement Clinker
  • A small cinder lump formed by the heat processing of limestone, clay, bauxite and iron ore sand in a rotating kiln.
  • Hydraulic Cement
  • Any cement that will set and harden after being combined with water. Most construction cements are hydraulic.
  • Portland Cement
  • The most common cement used as the basic ingredient of concrete, mortar and stucco. Portland cement is produced using cement clinker and calcium sulfate to control the setting time.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Cement Manufacturing market research report offers insightful industry analysis and research into the market at the national level. IBISWorld’s in-depth industry market research is presented in a logical and consistent format. The industry report contains key industry statistics, market size, industry trends, and growth and profit forecasts for a 5-year outlook period.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Cement Manufacturing:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Cement Manufacturing market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Cement Manufacturing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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