Page 40 - Strategic_Plan_finanal_jlw_PDF_NeatFlip

This chart represents the
latest cost structure of
the industry. It shows the
proportion of revenue
each cost item absorbs,
with the remainder
representing profit.

The comparison to all
other industries in the
sector provides a
benchmark that shows
how the industry differs
from its peers.

Evaluation Four Ready-Mix Concrete Manufacturing in the US Industry Code 32732
(Planning Data For Re-Launching PHT)

Industry operators produce and deliver wet batches of concrete for construction
contractors. Operators do not mix the concrete or pour it; such activities are undertaken on
site by customers, including construction contractors and do-it-yourself homeowners.
Revenue from the production and distribution of concrete is expected to grow at an
annualized rate of 5.7% in the five years to 2016, to $28.1 billion.

This includes a forecast growth of 3.3% over 2016, in line with the improvement of key
building markets. The industry's performance depends heavily on the level of activity in
new home, commercial and institutional construction markets, as well as on the level of
infrastructure and utilities construction.

These markets rely on concrete as a main input into foundation, suspended flooring and
pavement construction. After a prolonged period of decline in the wake of the subprime
mortgage crisis and subsequent recession, building markets have turned the corner.

In turn, this has prompted full recovery among ready-mix concrete manufacturers, which
provide much of the input. The strong uptick in residential housing construction, in
particular has been key to positive industry performance in the five years to 2016, while
also boosting volumes and prices commanded by industry operators.

Profit is expected to reach 4.0% of revenue in 2016, up from 0.2% five years prior. The industry
has been consolidating slowly over the period but remains fragmented, since the high
perishability and bulkiness of wet concrete batches necessitates that operations remain localized.

Prepared for Growers Ice Company, Inc.
40
Jim White, PhD --- JL White International