The U.S. steel industry is one of the most prolific users of lime products. But the domestic steel industry has struggled to compete with cheaper imports from abroad over the past 30 years, having an effect on the American lime manufacturing industry the American lime manufacturing industry.
Recently, though, experts have become bullish on domestic steel, due to two factors: higher demand for steel from all across the world and tariffs on imported steel that have made American steel more competitive.
The domestic steel industry currently operates at 73% capacity. If tariffs and other trade strategies work, then the industry could grow that capacity to 80%, which would help maintain the viability of the steel industry – and provide a boon for lime manufacturing.
Prices Continue to Climb
Another factor working in favor of the lime industry is the continual rise in price.
According to the Federal Reserve, the price index has grown consistently. Higher prices provide a rising floor for manufacturers, which encourages more development in the industry and better returns for owners.
Construction Projected to Grow
Lime is a key component in the construction industry and has a wide variety of uses. As construction goes, so goes the lime industry in many ways.
According to projections, the U.S. construction industry could see a 6% increase in revenue by the end of 2018. Residential construction is set to lead the way, which is good for lime manufacturing because of how integral lime is to the construction process.
There are several reasons for lime manufacturers to look past 2018 with optimism. Growth in key industries and higher demand could provide a boon for lime manufacturing heading into 2019.
ProcessBarron engineers, constructs, and installs air, ash, and material handling equipment for lime manufacturing plants. Contact the team for more information.