Shaky ground: Difficult conditions in downstream construction markets have tempered revenue growth

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. The main markets for ready-mix concrete are residential construction, utilities and infrastructure sectors and the oil and natural gas industries. The industry has experienced mixed results over the five years to 2019, as difficult conditions in downstream construction markets have tempered industry revenue growth. Volatile operating conditions over the past five years were caused by changing and often contradictory trends in downstream construction more.

Industry Statistics & Market Size
Annual Growth 14-19
Forecast Growth 19-24

Industry Threats & Opportunities

  • The industry is expected to benefit from improved utility and transport infrastructure construction
  • Revenue was tempered by declining Canadian nonresidential construction
  • The residential construction market is likely to remain sluggish
  • Industry Report - Industry Key Buyers Chapter

    The Ready-Mix Concrete Manufacturing industry in Canada exhibits a medium level of concentration, with the three largest companies generating 25.9% of revenue. The remaining portion of industry revenue is generated in large part by numerous local operators operating in geographically narrow markets. Since concrete is heavy and quickly perishable, it must be transported quickly to purchasers at construction sites for pouring, with most concrete transport limited to a radius between 20.0 and 30.0 kilometres. In turn, only the biggest operators are able to spread facilities across the country in proximity to different markets. However, companies' economies of scale (lower unit costs) are diminished if facilities are dispersed. Rem...purchase to read more.

    Additional Insights for the Ready-Mix Concrete Manufacturing Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Ready-Mix Concrete Manufacturing Industry are

  • Proximity to key markets
  • Guaranteed supply of key inputs
  • Ability to quickly adopt new technology
  • IBISWorld analysts also discuss how external factors such as Demand from highway, street, bridge and tunnel construction and Value of nonresidential construction in the Ready-Mix Concrete Manufacturing industry impact industry performance..

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    What's in this report

    What is the Ready-Mix Concrete Manufacturing Industry?

    This 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. The production of dry batch concrete is excluded from industry operations.

    Industry Products
  • Crushed sand and gravel mining
  • Crushed and broken limestone
  • Other crushed and broken concretes
  • Industry Activities
  • Manufacturing ready-mix concrete (wet batch production)
  • Manufacturing concrete in transit, using mobile plant facilities
  • Delivering ready-mix concrete to end users
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Demand from highway, street, bridge and tunnel construction
  • Value of nonresidential construction
  • Value of residential construction
  • Demand from oil and gas pipeline construction

  • Current Performance
  • Mixed performance in downstream markets
  • Perishable product and industry structure
  • Chart: Revenue Growth

  • Industry Outlook
  • Demand from construction markets
  • Consolidation on the horizon
  • Trends in construction sand prices
  • Table: Ready-Mix Concrete Manufacturing Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Ready-Mix Concrete Manufacturing Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Homebuilders in Canada
  • Apartment & Condominium Construction in Canada
  • Industrial Building Construction in Canada
  • Bridge & Elevated Highway Construction in Canada
  • Concrete Contractors in Canada
  • Commercial Building Construction in Canada
  • Water & Sewer Line Construction in Canada
  • Oil & Gas Pipeline Construction in Canada

  • Key Selling Industries
  • Cement Manufacturing in Canada
  • Fuel Dealers in Canada
  • Heavy Equipment Rental in Canada
  • Sand & Gravel Mining in Canada
  • Stone Mining in Canada

  • Products & Services
  • Crushed and broken limestone
  • Crushed sand and gravel mining
  • Other crushed and broken concretes
  • Chart: Ready-Mix Concrete Manufacturing Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Other including utility construction
  • Transport infrastructure
  • Residential construction
  • Nonresidential construction
  • Chart: Major Market Segmentation for the Ready-Mix Concrete Manufacturing Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitPurchasesWages and depreciationOther costs
  • Chart: Cost Structure Benchmarking – Sector vs Ready-Mix Concrete Manufacturing

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Ready-Mix Concrete Manufacturing Industry

  • Industry Globalization
    Lafarge Canada Inc., HeidelbergCement Group, CRH Canada Group Inc.,
  • Table: Lafarge Canada Inc. - financial performance
  • Table: HeidelbergCement Group - financial performance
  • Table: CRH Canada Group Inc. - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Ready-Mix Concrete 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 Ready-Mix Concrete Manufacturing Industry
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)
  • Value of nonresidential construciton (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
  • Sand, gravel or crushed stone material. Used in combination with water and cement to manufacture concrete.
  • Batch
  • A quantity by volume, e.g. cubic yards or cubic metres. Batches of ready-mix concrete are created through the mixing of aggregate, cement, water, extenders and chemical additives.
  • Fly Ash
  • An inorganic residue or byproduct from thermal coal power plants that cementious properties. It is often used as a partial replacement for cement in a concrete batch.
  • Portland Cement
  • A hydraulic cement and the most commonly used for making concrete.
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    Why buy this report?

    The Ready-Mix Concrete Manufacturing market research report provides key industry analysis and industry statistics, measures market size, analyzes current and future industry trends and shows market share for the industry’s largest companies. IBISWorld publishes the largest collection of industry reports so you can see an industry’s supply chain, economic drivers and key buyers and markets.

    IBISWorld industry market research reports enable you to:
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    This report on Ready-Mix Concrete 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 Ready-Mix Concrete 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 Ready-Mix Concrete Manufacturing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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