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Martin Marietta Materials Inc (MLM) |
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Martin Marietta Materials Inc 's Comment on Competitors and Industry Peers
Because of the impact of transportation costs on the aggregates industry, competition
in the Aggregates business tends to be limited to producers in proximity to
each of the Company’s facilities. Although all of the Company’s
locations experience competition, the Company believes that it is generally
a leading producer in the areas it serves. Competition is based primarily on
quarry or distribution location and price, but quality of aggregates and level
of customer service are also factors.
There are over 5,500 companies in the United States that produce construction
aggregates. These include active crushed stone companies and active sand and
gravel companies. The largest ten producers account for approximately 35% of
the total market. The Company’s aggregates-related downstream operations
are also characterized by numerous operators. A national trade association estimates
there are about 5,500 ready mixed concrete plants in the United States owned
by over 2,200 companies, with about 55,000 mixer trucks delivering ready mixed
concrete. Similarly, a national trade association estimates there are about
3,700 asphalt plants in the United States owned by over 800 companies. The Company,
in its Aggregates business, including its aggregates-related downstream operations,
competes with a number of other large and small producers. The Company believes
that its ability to transport materials by ocean vessels and rail have enhanced
the Company’s ability to compete in the aggregates industry.
The Company’s Magnesia Specialties business competes with various companies
in different geographic and product areas principally on the basis of quality,
price, technological advances, and technical support for its products. The Magnesia
Specialties business also competes for sales to customers located outside the
United States, with revenues from foreign jurisdictions accounting for 18% of
revenues for the Magnesia Specialties business in 2016, principally in Canada,
Mexico, Europe, South America, and the Pacific Rim.
According to the Portland Cement Association, United States cement production
is widely dispersed with the operation of 107 cement plants in 36 states. The
top five companies collectively operate 49.6% of U.S. clinker capacity with
the largest company representing 14.2% of all domestic clinker capacity. An
estimated 76.7% of U.S. clinker capacity is owned by companies headquartered
outside of the United States. In reviewing these figures for cement plants,
capacity is often stated in terms of “clinker” capacity. “Clinker”
is the initial product of cement production. Cement producers mine materials
such as limestone, shale, or other materials, crush and screen the materials,
and place them in a cement kiln. After being heated to extremely high temperatures,
these materials form marble-sized balls or pellets called “clinker”
that are then very finely ground to produce portland cement.
The Company’s Cement business competes with various companies in different
geographic and product areas principally on the basis of proximity, quality
and price for its products, but level of customer service is also a factor.
The Cement business also competes with imported cement because of the higher
value of the product and the existence of major ports in some of our markets.
Certain of the Company’s competitors in the Cement business have greater
financial resources than the Company.
The nature of the Company’s competition varies among its product lines
due to the widely differing amounts of capital necessary to build production
facilities. Crushed stone production from stone quarries or mines, or sand and
gravel production by dredging, is moderately capital intensive. The Company’s
major competitors in the aggregates markets are typically large, vertically
integrated companies, with international operations. Ready mixed concrete production
requires relatively small amounts of capital to build a concrete batching plant
and acquire delivery trucks. Accordingly, economics can lead to lower barriers
to entry in some markets. As a result, depending on the local market, the Company
may face competition from small producers as well as large, vertically integrated
companies with facilities in many markets. Construction of cement production
facilities is highly capital intensive and requires long lead times to complete
engineering design, obtain regulatory permits, acquire equipment and construct
a plant. Most domestic producers of cement are owned by large foreign companies
operating in multiple international markets. Many of these producers maintain
the capability to import cement from foreign production facilities.
Overall company Market Share Q4 2020 |
With revenue growth of 7.2 % within Overall company, Martin Marietta Materials Inc achieved improvement in market share, within Overall company to approximate 20.92 %.
<< More on MLM Market Share.
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*Market share calculated with total revenue.
MLM's vs. Competition, Data
(Revenue and Income for Trailing 12 Months, in Millions of $, except Employees)
COMPANY NAME |
MARKET CAP |
REVENUES |
INCOME |
EMPLOYEES |
Martin Marietta Materials Inc |
4,730 |
21,666 |
721 |
8,111 |
China Advanced Construction Materials Group, Inc |
45 |
19 |
-5 |
448 |
Continental Materials Corporation |
122 |
15 |
-27 |
563 |
Eagle Materials Inc |
1,596 |
5,897 |
346 |
2,000 |
Granite Construction Inc |
3,423 |
1,719 |
-142 |
1,800 |
Mdu Resources Group Inc |
5,533 |
6,478 |
390 |
9,598 |
Oro East Mining, Inc. |
0 |
0 |
0 |
1 |
Summit Materials Inc |
2,332 |
3,445 |
141 |
5,000 |
U s Concrete Inc |
1,366 |
1,057 |
25 |
643 |
United States Lime and Minerals Inc |
161 |
806 |
28 |
321 |
Vulcan Materials Company |
4,857 |
23,211 |
584 |
5,941 |
SUBTOTAL |
24,163 |
64,314 |
2,062 |
34,426 |
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