What Are the Elements of the Stone Industry?
Stone product fabricators are part of a supply chain that starts with the pull signal from a customer who wants marble flooring or granite countertops, a memorial or dramatic stone marker, or any of the dozens of other architectural or decorative uses of stone. One set of businesses uses stone equipment to obtain natural or engineered stone, perform any final, custom fabrication steps, and install it. They provide demand to another set of businesses, which process raw stone blocks and slabs into a form that the final fabricators can use. Demand by the processors of raw stone materials drives demand at the quarries where natural stone and raw material for engineered stone originates.
How is the Stone Industry Affected by Ups and Downs in the Economy?
About 80% of products fabricated from dimensional stone are used in the construction industry, so the fortunes of every link in the stone industry supply chain are strongly linked to how the construction industry is doing. Overall, the stone industry has grown at a pace of about 5% per year for many decades (Ashmole). The stone industry last suffered severe contraction during the Great Recession of 2007-2009. It had been recovering well and growing until the Covid-19 pandemic took the wind out of the sails in 2020-2021. It’s been a bit of a rough patch with workplaces impacted at times, and some material supply chain hiccups that have led to increased prices.
What Does the Future Hold for the Stone Industry?
The stone industry is a lot like stone itself: strong and enduring. It goes through ups and downs with the rest of the global economy, but this beautiful and long-lasting material never really goes out of style.
In 2019, before the start of the pandemic, industry publications reported on a growing shortage of qualified, skilled stone workers. That might be unfortunate news for end customers, who have to pay more for stone products, but it also means that there is a ton of opportunity out there for entrepreneurs who want to satisfy the increasing demand for stone products of all kinds.
Stone is in. It has a luxury look that people crave, and during the pandemic, people spent a lot more time in their homes, and found a lot of room for improvement. Spending on home improvements grew by 3% in 2020. Even when homeowners chose to do the work themselves, they still had to buy materials, some of which had to be produced by the stone industry.
Experts expect the construction industry, and therefore the stone industry, to recover any lost ground as the pandemic wanes and projects that were put off become more urgent. Infrastructure spending is slated to rise, coming on the heels of the 2022 infrastructure bill, and dimensional stone will play some part in the materials mix. Housing has become tight enough that in some areas, the economic balance is tipping in favor of new construction – and stone can shine there. Stone may even take market share from some other materials as environmentally aware users become more aware of the sustainable benefits of stone: it’s a natural material that lasts forever, is easy to take care of, and can be recycled.
How Can You Prepare for a Stone Industry Upswing?
You’re the expert on your local business climate. You know whether your factory is already about to burst at the seams. You know whether the stone equipment you’re using now is on its last legs. You know whether you need to improve your productivity with a higher level of automation.
At Stone Machinery Direct, we can help you solve those problems now, with quality, pre-owned stone fabrication machinery that is available immediately. Our sales engineers can help you analyze your needs and connect you with the best equipment and financing options, positioning you to participate in the continued growth expected in the markets for all kinds of dimensional stone products. Contact Stone Machinery Direct for assistance.
Sources
- Microsoft Word – 21-Ashmole (saimm.co.za) (DIMENSION STONE : THE LATEST TRENDS IN EXPLORATION AND PRODUCTION TECHNOLOGY)
- Tile and Stone Industry Contends With Skilled Labor Shortage (constructionexec.com)
- Despite Devastating Effects on the Broader Economy, Pandemic Has Been a Boon for US Home Improvement | Joint Center for Housing Studies (harvard.edu)
- Understanding the Infrastructure Bills (investopedia.com)
- 5 Reasons Stone is Sustainable – Multifamily Real Estate News (multihousingnews.com)
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