Industry Analysis & Industry Trends
The annual market for cement in Australia ranges from 8.5 to 10.5 million tonnes and local manufacturing capacity is about 10.5 to 11.5 million tonnes. This excess productive capacity, along with the threat of low-cost imports from neighbouring Asian producers, ensures that intensely competitive conditions prevail across the industry, containing prices and profit margins. The volume of cement production reached a record peak of 10.27 million tonnes in 2011-12 and has averaged 9.29 million tonnes in the 10 years through 2012-13.
The Cement and Lime Manufacturing industry is forecast to generate revenue of $2.6 billion in 2012-13, down by 1.5% on the previous year. Domestic demand totals $2.71 billion, with cement and lime imports projected at $115 million in 2012-13 (4.2%... purchase to read more
Industry Report - Starting a New Business Chapter
Barriers to entry into the industry are extremely high, due mainly to the high minimum start-up costs, the dominance of the current players and the current excess local manufacturing capacity.
A high degree of capital investment is required to establish operations at an efficient scale. It is estimated that the cost of a modern cement plant is about $250 per tonne of annual capacity.
The current domination of the regional markets by several large-scale operators poses a significant barrier to the entry of new competitors, as the incumbent manufacturers are unlikely to yield market share without significant competition... purchase to read more