| Cement Industry |
 Cement is the essential ingredient in concrete, the second most consumed substance in the world after water. Portland cement is a local product made in Britain and was even invented here. No school, house, road, hospital or bridge would be built without it. U.S. cement production is rather widely distributed. The largest company produces just over 13% of the industry total, and the top five companies collectively produce around 53%. Foreign companies now own approximately 81% of U.S. cement capacity, up from about 22% in 1980. Investments during the 80’s by European companies, as well as Asian entities, were spurred by the favorable position of the U.S. dollar against foreign currencies. In 2002, U.S. Portland cement consumption was 103.8 million metric tons, a decline of 4% from 2001 levels. Cement’s fate — like that of most of the other building materials — is closely tied to that of the construction industry. Cement consumption is spurred by strong performance in the construction industry as a whole; however, individual sector growth, such as highway construction, affects cement consumption more heavily. Inflation-adjusted construction spending was $693 billion in 2002, down 1.7% from 2001 levels and accounting for a 7.3% share of the national economy. Strong construction markets in the 1990’s helped boost cement consumption in that decade. Nonresidential construction, until recently, was one source of cement consumption growth. Continued strength in the public construction sector also contributed to cement’s performance. Public construction spending was $168 billion in 2002, up 3.7% from the previous year. Authorizations of the Federal Surface Transportation Act of 1980, as well as the Intermodal Surface Transportation Efficiency Act of 1991, have provided much of the funding needed to keep the highway construction sector moving forward. The Transportation Equity Act for the 21st Century (TEA21) and its current pending reauthorization (SAFETEA) should support future consumption. Although cement consumption is closely tied to overall construction industry performance, cement is somewhat protected from extreme cycles because cement is used in nearly every type of construction. While individual construction markets have their own distinct business cycles, at any given time cement is usually needed by at least one segment of the construction industry. Side view of a bridgeThe cement business, however, is fairly seasonal. Nearly two-thirds of U.S. cement consumption occurs in the six months between May and October. The seasonal nature of the industry can result in large swings in cement and clinker (unfinished raw material) inventories at cement plants over the course of a year. Cement producers will typically build up inventories during the winter and ship them during the summer. The cement industry is also regional in nature. Because the cost of shipping cement quickly overtakes its value, customers traditionally purchase cement from local sources. Nearly 96% of U.S. cement is shipped to consumers by truck. Barge and rail modes account for the remaining distribution modes. Approximately 75% of all shipments are sent to ready-mix concrete operators. Plants shipped 13% of the cement they manufactured to concrete product manufacturers, 6% to contractors, and 3% to building material dealers. |
Contact Information
| Address | Ciftlik Cad. Arcelik Ambar Yolu Uzeri No:2 Cayirova - Kocaeli / TURKEY |
| Phone | +90 262 743 63 73 (4 hat) |
| Fax | +90 262 743 63 69 |
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