Press Release Summary = US demand to grow 1.8% annually through 2010
US demand for brick and block products will increase 1.8 percent annually through through 2010. While strong growth in home building activity has been the primary demand driver over the last decade, an expected decline in new single-family home building over the next five years will lead to slightly lower demand levels
Press Release Body = Bricks & Blocks forecasts to 2010 & 2015
US demand to grow 1.8% annually through 2010
US demand for brick and block products will increase 1.8 percent annually through through 2010. While strong growth in home building activity has been the primary demand driver over the last decade, an expected decline in new single-family home building over the next five years will lead to slightly lower demand levels in this key market segment. However, the nonresidential building market, which languished for much of the latter 1990s, is now poised for a strong rebound and will emerge as the primary engine of growth through 2010.
Concrete block to offer greatest growth potential
By product, concrete block products will offer the greater growth potential through 2010. This is in part a reflection of the industry's increasing dependence on nonresidential markets, which consume considerable quantities of concrete block as structural materials. Brick products, on the other hand, are usually used in siding (nonstructural) applications, and tend to be more heavily dependent on the slowing residential segment of the market.
Industry consolidation to continue
Industry consolidation, which has been commonplace in the industry for over a decade, will continue to occur, further reducing the number of competitors. Because brick and block products are heavy, low unit-cost materials, transportation over large distances is impractical, and markets tend to be regional in nature. As a result, larger firms frequently expand into new geographic markets by acquiring existing concerns, a trend that shows no signs of abating in the near future.
Trends in home building also impact overall demand for bricks and blocks. For example, the slowly declining use of brick as a primary siding material will continue to impact consumption, as will the decreasing inclusion of fireplaces in new homes. On the other hand, an increasing focus on yard design will boost demand for products used in landscaping and fencing applications, both in the residential and nonresidential segments of the market.
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2022
