Market Trends of United States Construction Materials Industry
Rising Investments in the Infrastructure and Industrial Sectors Driving the Market
- Construction materials such as natural stones and minerals, including marble, granite, limestone, sandstone, sand, and gravel, serve as foundational elements in the construction industry. Their varied properties and uses play a pivotal role in shaping infrastructure and industrial facilities.
- As urbanization and economic growth surge in the United States, so does the demand for enhanced infrastructure. In response, private and government entities are channeling efforts into upgrading and expanding the nation's infrastructure.
- For instance, in January 2023, the US government announced plans to allocate USD 1.2 billion from the National Infrastructure Project Assistance’s discretionary grant program for nine national projects.
- In February 2023, the US government allocated around USD 1 billion to improve airport infrastructure, including 99 airports nationwide. According to the US Department of Transportation, the government planned the Bipartisan Infrastructure Law (BIL) to fund around USD 102 billion for rail infrastructure over five years (FY22-FY26).
- According to the Bipartisan Infrastructure Law passed by the US government in 2021, the Federal Highway Administration (FHWA) and the US Department of Transportation (USDOT) allocated about USD 120 billion for roads and bridges in 2022. Over 2,800 bridge projects began in November 2022. In addition, USDOT also invested USD 1.5 billion on roadway, rail, and multimodal freight projects that may strengthen the nation's transportation infrastructure, improve key freight movements, and make systems safer and more robust.
- Moreover, according to the US Census Bureau, the total construction spending on highway and street projects at the state and local levels reached USD 134 billion in 2023, reflecting an increase of more than 18% compared to 2022.
- Such expansions in the country’s infrastructural sector are likely to support the demand for construction materials.
- Tesla Gigafactory Expansion: The project involves expanding a 371,612 sq. m manufacturing plant in Sparks, Nevada. Construction work started in Q1 2024 and is expected to be completed in Q1 2029. The project aims to manufacture Tesla Semis and 4,680 battery cells.
- Blythewood EV Manufacturing Plant: The project involves the construction of a 1,495,738 sq. m, 31-building manufacturing plant on 445 ha of land in Richland County, South Carolina. Its construction commenced in Q1 2024 and is expected to finish in Q4 2026. The project aims to build a new production base to provide next-generation, environment-friendly vehicles and electric golf carts. It is expected to create 4,000 jobs.
- Hence, the robust growth of investments in infrastructure and industrial construction is likely to boost the market during the forecast period.
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Increase in Mining Activities and Growing Popularity of Dimension Stones Driving the Market
- The United States stands as the world's foremost consumer of dimension stone, a natural stone refined to precise shapes or sizes. While the United States ranks 18th globally in granite and marble production, it trails behind leading nations like China, India, and Turkey.
- In 2023, US producers sold or utilized approximately 2.3 million tons of dimension stone, valued at USD 410 million, as reported by the United States Geological Survey. A total of 176 companies operated 224 quarries across 33 states.
- According to the United States Geological Survey, apparent consumption of dimension stones in the year 2023 reached USD 3,000 million, rising from USD 2,680 million in 2022.
- Dimension stone is experiencing a resurgence in popularity within the US construction and design industries. Modern design trends often incorporate natural elements, and dimension stone fits seamlessly into this aesthetic. Its versatility allows for various finishes and applications.
- There is a growing appreciation for classic and traditional architectural styles. Dimension stone, with its timeless appeal, perfectly complements these designs. As environmental consciousness increases, dimension stone is gaining traction as a sustainable building material. It is durable, requires minimal maintenance, and has a long lifespan.
- Granite has been a trendy kitchen countertop material for years in the United States. It offers numerous advantages such as heat resistance, availability in many design and color options, longevity, durability, and ease of cleaning.
- Similarly, marble is a natural stone and a staple for luxury kitchens, making it another popular kitchen countertop material. Marble is generally more expensive than some other materials, but it can last years with regular maintenance.
- According to a survey conducted by Houzz (a magazine offering home renovation ideas) in 2023-2024 and released in January 2024, around 20% of homeowners in the United States used granite in their remodeling projects, while 4% used marble.
- Hence, all the factors mentioned above will likely create a positive impact on the market studied during the forecast period.
