Lafarge - Competitors

Lafarge Competition

Now Viewing Lafarge's competition in: Cement, Concrete and Construction Material (primary)

Recent Developments

US Cement Consumption Expected to Decline - US cement consumption will decline 11 percent in 2008 compared to 2007, according to the Portland Cement Association. High fuel prices, slow job creation, and tight lending standards will be leading causes of the decline. US cement consumption is expected to decline an additional 5.5 percent in 2009.

Rising Transportation Costs may Reduce Imports - The rising price of oil is beginning to offset cost advantages of countries like China, due to higher transportation costs. The cost to ship a container from port cities in China to New York has risen from $3,000 to $8,000, according to ABC News. Cement, concrete, and construction material manufacturers with most of their production facilities in the US are likely to benefit.

Toll Revenue Falls as Gas Price Rises - The rising price of gas and weakness in the US economy are causing many drivers to cut the amount of driving they do, decreasing toll road revenues. Cement, concrete, and construction material manufacturers may be negatively impacted if declining revenue leads to fewer highway construction projects. Toll revenue for California's Transportation Corridor Agencies will be 8 percent less than expected in 2008 if the downward trend in toll collections continues, according to The Bond Buyer.

Competitive Landscape

Because cement is a commodity product, manufacturers compete chiefly based on price. Production economies of scale are important, but are limited by the cost of transporting the finished product. The efficiencies that can be achieved with new energy-efficient (but capital-intensive) "dry" production technology are a major source of competition. Small manufacturers may not have the financial resources or production volume to justify investing in the most efficient technology, putting them at a competitive cost disadvantage. Cement imports from Canada are an important competitor in northern states.

Full Industry Overview For Cement, Concrete and Construction Material

Cement, Concrete and Construction Material Industry Forecast

from Hoover's/D&B subsidiary First Research

The output of US cement and concrete products is forecast to grow at an annual compounded rate of 3.2 percent between 2007 and 2012.

Cement and Concrete Manufacturing Slowly Recovers

First Research forecasts are based on INFORUM forecasts that are licensed from the Interindustry Economic Research Fund, Inc. (IERF) in College Park, MD. INFORUM's "interindustry-macro" approach to modeling the economy captures the links between industries and the aggregate economy.