NAICS 327310 Quarterly Industry Report
Cement Manufacturing
Comprehensive industry research for valuation professionals, business owners, buyers, and lenders
NAICS Code: 327310Sector: 32Updated: Q1 2026
About This Report
This Fair Market Value industry report for NAICS 327310 delivers business owners, acquirers, and financial advisors data-driven valuation insights for the cement manufacturing sector, drawing on data from the U.S. Census Bureau[5] and the Bureau of Labor Statistics[6]. The report aggregates transaction multiples, financial benchmarks, and market trends specific to NAICS 327310 establishments, supporting buy-sell agreements, succession planning, SBA-financed acquisitions, and litigation support engagements.
Industry Snapshot
Key metrics for the cement manufacturing industry.
Industry Definition & Overview
Cement Manufacturing (NAICS 327310) encompasses establishments primarily engaged in manufacturing portland cement, natural cement, masonry cement, pozzolanic cement, and other hydraulic cements. Production involves calcining limestone and clay raw materials in rotary kilns at temperatures exceeding 2,700 degrees Fahrenheit to produce clinker, which is then ground with gypsum to produce finished cement powder. According to the U.S. Census Bureau[5], roughly 316 companies operate in this classification, employing over 14,400 workers across plants that may also mine, quarry, or purchase lime as part of integrated operations.
The cement manufacturing process begins with raw material quarrying and crushing, followed by raw meal preparation through grinding and blending to precise chemical composition, clinker production in massive rotary kilns, and finish grinding to specified fineness using ball mills or vertical roller mills. Industry Bureau of Labor Statistics[6] identifies production roles including quarry operators, raw mill operators, kiln burners monitoring flame temperature and clinker quality, finish mill operators controlling cement fineness and strength development, and laboratory technicians performing chemical analysis and physical testing to ASTM standards.
Per the SBA Office of Advocacy[7], cement production is among the most capital-intensive and energy-intensive manufacturing sectors. A single kiln line can cost hundreds of millions of dollars, and energy represents 30 to 40 percent of production cost. Demand tracks construction spending closely, with infrastructure, commercial, and residential building activity all consuming cement through ready-mix concrete, precast products, and masonry applications. Transportation costs limit economic shipping radius to roughly 200 miles, creating regional market dynamics.
What's Included in This Industry
- Valuation multiples benchmarked to cement manufacturing operations
- Revenue and EBITDA trends for domestic cement production
- SBA lending data and financing terms for NAICS 327310 businesses
- Comparable transaction data from recent cement company acquisitions
- Industry risk factors including energy costs, CO2 regulation, and construction cycles
- Workforce composition and labor cost benchmarks for cement production
- Regional market analysis covering major cement plant locations and distribution territories
- Capital expenditure benchmarks for kilns, mills, and emission control systems
- Demand analysis across infrastructure, commercial, and residential construction segments
- Owner compensation and discretionary earnings benchmarks
NAICS Classification Hierarchy
| Level | Description | Code |
|---|---|---|
| Subsector | Nonmetallic Mineral Product Manufacturing | 327 |
| Industry Group | Cement and Concrete Product Manufacturing | 3273 |
| NAICS Industry | Cement Manufacturing | 32731 |
| National Industry | Cement Manufacturing | 327310 |
Related NAICS Codes
| Code | Description | Relationship |
|---|---|---|
| 327320 | Ready-Mix Concrete Manufacturing | Ready-mix concrete manufacturers consuming cement as their primary binding ingredient, representing the largest single demand channel for manufactured cement products |
| 327331 | Concrete Block and Brick Manufacturing | Concrete block and brick manufacturers consuming cement as a primary raw material input for producing concrete masonry units and concrete brick products |
| 327390 | Other Concrete Product Manufacturing | Other concrete product manufacturers consuming cement in precast concrete, concrete pipe, and specialty concrete product manufacturing operations |
| 327120 | Clay Building Material and Refractories Manufacturing | Clay building material manufacturers producing competing masonry products from clay rather than cement, with brick and block serving overlapping construction applications |
| 212321 | Construction Sand and Gravel Mining | Construction sand and gravel mining operators supplying aggregate materials consumed alongside cement in concrete production and frequently co-located with cement operations |
| 212319 | Other Crushed and Broken Stone Mining and Quarrying | Other crushed stone mining operators supplying limestone, the primary raw material input quarried and calcined in cement manufacturing rotary kilns |
Geographic Concentration
Top states by share of national establishments.
| # | State | % Est. | Total Est. |
|---|---|---|---|
| 1 | Texas | 14.5% | 23 |
| 2 | California | 9.4% | 15 |
| 3 | Pennsylvania | 8.2% | 13 |
| 4 | Missouri | 6.3% | 10 |
| 5 | Florida | 6.3% | 10 |
| 6 | Washington | 5.7% | 9 |
| 7 | Illinois | 5.0% | 8 |
| 8 | Alabama | 4.4% | 7 |
| 9 | Kansas | 3.8% | 6 |
| 10 | New York | 3.1% | 5 |
% Of Establishments
0%
14%
Source: County Business Patterns, U.S. Census Bureau[3]
SBA Lending Summary
16
Total SBA Loans
$3.2M
Total Loan Volume
$200K
Average Loan Size
10 yrs
Average Loan Term
12.38%
Average Interest Rate
40
Jobs Supported
Source: SBA 7(a) Program Data, U.S. Small Business Administration — FY 2025[4]
Key Insight: Cement manufacturers qualify as small businesses under the SBA size standards[8] for NAICS 327310, which set the threshold at 1,000 employees. The SBA 7(a) loan program[9] supports acquisitions of smaller cement operations and working capital, while the CDC/504 loan program[10] provides long-term fixed-rate financing for kiln upgrades, grinding equipment, emission control systems, and facility modernization. Given the massive capital scale of cement production, SBA programs primarily benefit smaller grinding-only or specialty cement operations rather than integrated kiln plants.
Top SBA Lenders
| # | Lender | Loans | Volume | Avg Loan |
|---|---|---|---|---|
| 1 | Readycap Lending, LLC | 8 | $2.8M | $350K |
| 2 | Newtek Bank, National Association | 8 | $400K | $50K |
Frequently Asked Questions
Common questions about this industry.
What types of businesses are classified under NAICS 327310?
NAICS 327310 covers manufacturers producing portland cement, masonry cement, natural cement, pozzolanic cement, and other hydraulic cements. Operations range from fully integrated plants with quarrying, kiln, and grinding capabilities to grinding-only facilities that import clinker. Per the U.S. Census Bureau[11], establishments may also mine, quarry, or purchase lime as part of their operations.
How is the cement manufacturing industry structured?
Large multinational cement producers dominate U.S. production, operating integrated kiln plants with regional distribution networks and grinding terminals. A smaller tier of independent producers operates single-kiln facilities serving local markets. Distribution terminals enable producers to extend their market reach beyond the typical 200-mile economic shipping radius of kiln plants. Imports supplement domestic production, particularly in coastal markets.
What is the SBA size standard for NAICS 327310?
The SBA classifies a cement manufacturer as a small business if it employs fewer than 1,000 workers. Per the SBA size standards table[8], this high threshold reflects the capital-intensive nature of cement production, where a single kiln line requires massive investment in quarrying, pyroprocessing, and grinding equipment.
What NAICS codes are most closely related to 327310?
Code 327320 covers ready-mix concrete as the primary customer industry. Code 327331 addresses concrete block production. Regional 327390 captures precast and other concrete products. Code 327120 covers competing clay brick and building materials. Per the Census Bureau[11], cement manufacturing is classified separately from the concrete products industries that consume its output.
What industries interact most with cement manufacturers?
Ready-mix concrete producers (327320) consume the majority of domestic cement output. Concrete product manufacturers (327331, 327390) consume additional volume. Highway and infrastructure construction drives public-sector demand. According to the Bureau of Labor Statistics[6], total construction spending is the primary macroeconomic indicator of cement demand.
What specific activities fall under NAICS 327310?
Covered activities include limestone quarrying and crushing, raw meal grinding and chemical composition control, clinker production in rotary kilns at temperatures above 2,700 degrees Fahrenheit, clinker cooling, finish grinding of clinker with gypsum in ball mills and vertical roller mills, cement blending with supplementary materials, and cement packaging and distribution.
Are cement manufacturers eligible for SBA loans?
Yes, cement producers with fewer than 1,000 employees qualify for SBA financing. The SBA 7(a) program[9] covers acquisitions and working capital, while the CDC/504 program[10] finances kiln upgrades, grinding equipment, and emission controls. SBA loans most commonly serve smaller specialty cement or grinding operations.
Where are cement manufacturing operations concentrated in the U.S.?
Cement plants locate near limestone deposits and construction demand centers. Texas, California, Pennsylvania, and the Midwest host the largest concentrations of production capacity. Coastal distribution terminals in port cities extend market reach through imported clinker grinding. Per the Census Bureau[12], plant locations reflect the intersection of raw material availability and proximity to active construction markets.
Sources & References
Government datasets and editorial sources used in this report.
- [1]U.S. Bureau of Labor Statistics, Quarterly Census of Employment and Wages bls.gov
- [2]U.S. Census Bureau, Economic Census census.gov
- [3]U.S. Census Bureau, County Business Patterns census.gov
- [4]U.S. Small Business Administration, SBA 7(a) Loan Program Data data.sba.gov
- [5]U.S. Census Bureau census.gov
- [6]Bureau of Labor Statistics bls.gov
- [7]SBA Office of Advocacy advocacy.sba.gov
- [8]SBA size standards sba.gov
- [9]SBA 7(a) loan program sba.gov
- [10]CDC/504 loan program sba.gov
- [11]U.S. Census Bureau census.gov
- [12]Census Bureau data.census.gov
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