Not so sandguine: Weak pricing and mixed demand have constrained industry revenue growth

The Gravel and Sand Quarrying industry has grown its revenue at a low rate over the past five years, due to weak volume growth, mixed downstream demand and lower prices. Activity in downstream client industries is the main demand determinant for aggregate. Roads and highways require large volumes of sand and gravel for road bases. However, demand from road and bridge construction is expected to increase at a similar annualised rate to the industry over the five years through 2019-20. Concrete and glass manufacturing requires aggregate as a raw material input. Furthermore, residential and non-residential building construction requires high volumes of the industry's products for bases, landscaping and other more.

Industry Statistics & Market Size
Annual Growth 15-20
Forecast Growth 20-25

Industry Threats & Opportunities

  • Industry players have contended with low-volume growth and mixed demand over the past five years
  • Industry profit margins have declined over the past five years, due to lower prices and higher operating costs
  • Industry profit margins are forecast to improve over the next five years due to higher pricing
  • Industry Report - Industry Products Chapter

    The Gravel and Sand Quarrying industry is projected to generate more than 60% of industry revenue in 2019-20 from sand products. The remaining balance is anticipated to be derived from gravel and decorative pebbles. Only been minimal changes to the relative sizes of these product segments have occurred over the past five years.Construction sandConstruction sand includes rock and mineral particles (mainly quartz) that measure up to five millimetres in diameter. The sand is used mainly as fine aggregate in concrete and mortar manufacturing, sand-lime bricks manufacturing, and for filling or packing applications. Additionally, the sand is used extensively in road and building construction and concrete manufacturing. Con...purchase to read more.

    Additional Insights for the Gravel and Sand Quarrying Industry

    IBISWorld has determined the most important Key Success Factors for the Gravel and Sand Quarrying are:

  • Ability to accommodate environmental requirements
  • Ability to find new resource deposits
  • Ability to pass on cost increases
  • IBISWorld analysts also discuss how external factors such as Demand from manufacturing and Demand from road and bridge construction in the Gravel and Sand Quarrying industry impact industry performance..

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    What's in this report

    What is the Gravel and Sand Quarrying in New Zealand Industry?

    Industry operators quarry, wash and screen sand or natural gravel. The industry excludes firms that quarry, crush or screen crushed or broken stone, or quarry silica.

    Industry Products
  • Gravel
  • Fine, silica and specialty sand
  • Construction sand
  • Decorative pebbles
  • Industry Activities
  • Quarrying pebbles
  • Quarrying, washing or screening river gravel
  • Gathering ornamental rocks
  • Quarrying, washing or screening sand
  • 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 manufacturing
  • Demand from road and bridge construction
  • Demand from building construction
  • Road freight service price
  • Demand from construction services

  • Current Performance
  • Output and demand
  • Revenue and profit growth
  • High transport costs
  • Location issues
  • Chart: Revenue Growth

  • Industry Outlook
  • Pricing and demand
  • Revenue and profit growth
  • Establishments and employment
  • Table: Gravel and Sand Quarrying Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Gravel and Sand Quarrying Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • House Construction in New Zealand
  • Road and Bridge Construction in New Zealand
  • Commercial and Industrial Building Construction in New Zealand

  • Key Selling Industries
  • Agricultural and Construction Machinery Wholesaling in New Zealand
  • Commercial Vehicle Wholesaling in New Zealand
  • Heavy Machinery Repair and Maintenance in New Zealand
  • Road Freight Transport in New Zealand

  • Products & Services
  • Construction sand
  • Gravel
  • Fine, silica and specialty sand
  • Decorative pebbles
  • Chart: Gravel and Sand Quarrying Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Road and highway construction firms
  • Cement and concrete manufacturers
  • Glass and glass product manufacturers
  • Residential building contractors
  • Non-residential building contractors
  • Landscaping suppliers and other sectors
  • Exports
  • Chart: Major Market Segmentation for the Gravel and Sand Quarrying Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Gravel and Sand Quarrying

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Gravel and Sand Quarrying Industry

  • Industry Globalization
    Fletcher Building Limited, Fernhoff Limited,
  • Table: Fletcher Building Limited - financial performance
  • Table: Fernhoff Limited - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Gravel and Sand Quarrying 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 Gravel and Sand Quarrying Industry
  • Industry Revenue (2011-2025)
  • Industry Gross Product (2011-2025)
  • Establishments (2011-2025)
  • Businesses (2011-2025)
  • Employment (2011-2025)
  • Exports (2011-2025)
  • Imports (2011-2025)
  • Wages (2011-2025)
  • Wages (2011-2025)
  • Purchases (2011-2025)
  • Profit (2011-2025)
  • Depreciation (2011-2025)
  • Rent (2011-2025)
  • Utilities (2011-2025)
  • Other (2011-2025)
  • Aggregate Production (2011-2025)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
  • Naturally occurring rock fragments or pebbles, up to approximately 64 millimetres in diameter.
  • Quarrying
  • The extraction of sand, stone, rock and construction materials from an open pit or surface quarry.
  • Sand
  • Particles of mineral material, primarily quartz, up to five millimetres in diameter.
  • Screening
  • A process that uses a series of wire screens with holes of diminishing size to separate particles of different size.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Gravel and Sand Quarrying in New Zealand market research report provides the latest industry statistics and industry trends, allowing you to identify the products and customers driving revenue growth and profitability. The industry report identifies the leading companies and offers strategic industry analysis of the key factors influencing the market.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Gravel and Sand Quarrying in New Zealand:
    • 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 Gravel and Sand Quarrying in New Zealand 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 Gravel and Sand Quarrying in New Zealand, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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