Asphalt Products Manufacturing

Asphalt Products Manufacturing

Brief Excerpt from Industry Overview Chapter:

Companies in this industry manufacture asphalt and tar mixtures for paving and blocks, as well as asphalt shingles, roofing cements, and coatings. Major companies include building materials manufacturers such as Boral Limited, Carlisle, and Owens Corning; segments of large construction products companies such as Compagnie de Saint-Gobain, CRH (Ireland), and LafargeHolcim; and segments of large refined petroleum product companies such as BP, Marathon Petroleum, and Valero.

COMPETITIVE LANDSCAPE

Demand is determined primarily by the availability of government road-building funds and nonresidential and residential construction activity. The profitability of individual companies is strongly dependent on efficient operations. Large companies enjoy economies of scale in purchasing and the ability to invest in technologies that improve efficiency. Small manufacturers can compete through superior customer service and by serving small or rural markets. The US industry is concentrated: the top 50 companies account for about 70% of industry revenue.

PRODUCTS, OPERATIONS & TECHNOLOGY

Major products include asphalt paving mixtures and asphalt blocks (about 50% of industry revenue), and laminated or multilayered asphalt strip shingles, and individual shingles (about 25%). Asphalt mix is most commonly needed for new and reconstructed roadways. Asphalt is used to surface more than 90% of US roads and highways.