Essay on Cement Industry Analysis

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The cement industry in North America has been struggling through tough times in recent years. It is hard to believe that cement volumes have fallen to their lowest levels since the 1980s. The Portland Cement Association has predicted modest growth in the US cement industry during 2011 – 12, and expects that 2013 will mark a watershed for the industry in terms of a substantive and sustained recovery in volume and company decisions to re-open in the context of harsh EPA NESHAP regulations (Maxwell-Cook 2011).
The manufacturing of portland cement requires large amounts of fuel, energy and maintenance of physical equipment which accrues massive production costs for the manufacturing companies. It is important for managers at Gray …show more content…
The industry report includes information on supply chain, economic drivers and key buyers and markets which is all necessary information (IBIS, 2012).
Reports should not be limited to competitors but should also be obtained on suppliers. They can use this research driven strategy instead of relying on other cement manufacturing competitors to release their information it is important for Gray Portland’s Cement Company to do their own research (Ansoff & Antoniou, 2005). By comparing different cement companies with market research they will be able to monitor the domestic and global cement industry. It is important for the company to pay attention to increased global competition from foreign companies importing cement into the United States (Case Study, pg 4).
Since local power companies and fuel suppliers represent not only a significant threat to uninterrupted plant operations, but also an uncontrollable cost increase as well, GPCC needs to take action to secure the following: adequate supplies of fuel and energy at an acceptable cost to ensure uninterrupted operation at each of their cement plants. To ensure adequate supplies, proper strategic forecasting of current demand and supply must be done in correlation to direct customers. Forecasting will help to address production costs and energy issues not only for the future but current costs as well. It is important to also address current production costs to help provide better efficiency and
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