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Survival Economics 2008
Robert
B. Bruce, PhD
Presented at
Global Gypsum
Conference 2007; Shanghai, China May 2007
Introduction:
The gypsum board
industry in North America has enjoyed an extended period of growth,
resulting in record shipments and profits in 2005-6. In the second half of
2006, however, the building industry entered a down cycle. The gypsum board
companies are now once again scrambling for ways to increase sales and to
reduce costs. With the slowdown in housing and the build-up of capacity now
underway, shipments, pricing and profits are all declining. The purpose of
this paper is to help explain the supply/demand situation, the impact that
this will have on pricing, how the manufacturing cost base has changed with
the move to FGD Gypsum and to new technology, and the opportunity for future
cost reduction as these low prices become the new norm for the industry.
Please
contact us for publication pricing and
availability.
Dr Bob Bruce
(right) accepting his award for Global Gypsum 2007 'Best
Presentation'
from Dr Robert McCaffrey (left). Dr Bruce tied for first place
in conference delegate voting.
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