The U.S. Cement Industry Operating In An Unfriendly Environment

Cement in 1975 indeed did operate in an unfriendly environment. World recession, escalating costs, fuel crises, reduced product demand . . . . all led to market conditions detrimental to industry profit margins and investment re turns. During the year plant utilizations fell, break-even points were raised, and competitive moves introduced to move built up inventory levels. A number of cement plants were temporarily taken out of production to help alleviate specific situations. Meanwhile, under resultant financial pressure, several companies omitted dividend payments, changed their top executives, and reorganized and reduced staff overheads. It was a difficult year for cement, yet a much more ominous note was sounded in permanent plant closings. Four more cement operations were shut down in 1975; to date in 1976 we know for sure of three additional plant closings, while rumour has it that at least one more may not be in production by year-end. The somber feature is found within the descriptions of the closed facilities, and in the stated reasons for their being taken out of cement manufacture.