US demand for precast concrete products is forecast to rise 6.1 percent annually to $11.3 billion in 2015. This pace will represent a turnaround from the 2005-2010 time frame when demand fell on account of a precipitous drop in construction activity toward the latter part of the period. The vast majority of demand for precast concrete products comes from construction markets. Growth in demand will be driven by an across-the-board rebound in construction activity from a low 2010 base. These and other trends are presented in Precast Concrete Products, a new study from The Freedonia Group, Inc., a Cleveland-based industry market research firm.
Residential building will be the fastest growing market for precast concrete products, advancing at a rate of 9.3 percent annually through 2015. Growth will be helped by the expected large rise in housing starts from a low 2010 base. Products that will fare particularly well in this market include foundations, basement walls and floors.
Nonresidential building is the largest precast concrete product market, comprising nearly one-half of all demand. Strong growth is expected in the office and commercial, and institutional market segments, where precast concrete products are used because of their ease of installation, consistent product quality and long lifespan.
Of all product types, architectural building components are forecast to see the fastest growth in demand through 2015. Growth will be spurred by the rising use of such products as decorative façades, door and window surrounds, and siding. Roofing tiles will also support demand and will benefit from their popularity in the rapidly growing residential markets in the South and West.
Structural building components account for the largest share of product demand. Above-average growth will be supported by builders increasingly specifying precast concrete products at the expense of less durable wood products and more costly steel products. Prefabricated buildings, floors and walls, and underground building supports will all experience healthy gains.
US PRECAST CONCRETE PRODUCT DEMAND (million dollars) |
|||||
% Annual Growth |
|||||
Item |
2005 |
2010 |
2015 |
2005- 2010 |
2010- 2015 |
|
|
|
|
|
|
Precast Concrete Products |
10680 |
8400 |
11300 |
-4.7 |
6.1 |
StructuralBuildingComponents |
4500 |
3885 |
5320 |
-2.9 |
6.5 |
Architectural Building Components |
2385 |
1720 |
2540 |
-6.3 |
8.1 |
Transportation Construct Products |
1655 |
1160 |
1490 |
-6.9 |
5.1 |
Water & Waste Handling |
955 |
625 |
820 |
-8.1 |
5.6 |
Cemetery Products |
470 |
445 |
460 |
-1.1 |
0.7 |
Agricultural Products |
180 |
200 |
230 |
2.1 |
2.8 |
Other |
535 |
365 |
440 |
-7.4 |
3.8 |
|
|
|
|
|
|
2011 by The Freedonia Group, Inc.
Precast Concrete Products (published 03/2011, 276 pages) is available for $4,800 from The Freedonia Group, Inc., 767 Beta Drive, Cleveland, OH 44143-2326. For further details, please contact Corinne Gangloff by phone 440.684.9600, fax 440.646.0484 or e-mail [email protected]. Information may also be obtained through www.freedoniagroup.com.
