| The U.S. portland cement industry, though a small industry, lies at the heart of industrial America. Many issues that affected basic industries in the post-war period are reflected in the history of the cement industry. The domestic cement industry, like many U.S. manufacturing industries, struggled with technological change and productivity growth, volatile markets and inflation, government regulation and changing market structure, investment and employment, environmental controls and rising energy costs, imports and globalization. These issues are examined from the context of the U.S. portland cement industry from 1945 to 1990.; The cement industry's struggles were similar to what other basic industries in the U.S. went through, but the outcome was singular. Unlike other industries that faced far-reaching restructuring in 1980s, the U.S. cement industry ended up being predominantly foreign owned. Domestic producers exited the cement business by selling their plants and facilities, largely to European based multinational cement producers. In less than a decade from the late 1970s to the mid-1980s, foreign ownership went from less than 10% to more than 65% and fundamentally altered the structure of the U.S. cement industry.; In the decade following W.W.II, the industry was slow to expand as construction markets boomed. Capacity growth came in a rush during 1955--57, and the industry entered the 1960s dominating domestic markets. During the 1960s, the FTC blocked attempts at both vertical and horizontal integration and the industry stagnated. Unable to growth within the industry, producers turned to other opportunities.; The cement industry was battered in the 1970s and 1980s by price controls, recessions, and the Energy Crises. Domestic producers faced a rising tide of imports, as international markets developed and cement became a global commodity. As the industry's ability and desire to remain competitive wavered, foreign companies with fresh supplies of capital, modern production technologies, and new marketing strategies, purchased production and distribution facilities. Flexible sourcing and marketing replaced the neat geographical markets as producers moved to integrate plants and distribution facilities in new ways. |
