Construction Materials covers aggregates, cement, lime and concrete. MoatScope covers 13 companies here. Three have a wide moat, five a narrow moat and five none, and the industry's average quality score of 55 is among the highest in the market.
How the industry makes money
Crushed stone, sand and gravel are heavy and cheap, so they rarely travel far from the quarry. Each quarry effectively serves its own local market, and permits for new quarries are hard to win.
Where the moats are
Cost advantages appear in all eight moat-rated companies and efficient scale in seven: well-located reserves near growing cities are almost impossible to replicate.
- CRH, Vulcan Materials and Martin Marietta: large portfolios of well-located quarries serving fast-growing regions.
The narrow-moat group includes Amrize, Eagle Materials, United States Lime & Minerals, Knife River and Smith-Midland. United States Lime & Minerals scores 78 on MoatScope's quality scale.
What wears moats down
Construction volumes fall in downturns, energy costs weigh on cement, and public infrastructure budgets can shift.
What to watch
- Infrastructure and construction volumes.
- Aggregates pricing.
- Energy costs for cement.
Moat ratings and quality scores on this page update as companies report. Price versus fair value for every company in the industry is in the screener.