Modernization Makes Cement Pay

The cement industry is on the horns of an economic dilemma. Within the last ten years, its over- capacity in the United States has varied from 139- 127% of demand (Fig. 1). The most direct effect of this is seen in cement prices, which reached a peak in 1960, retreated steadily through 1966 and only recently climbed back to the 1960 level again. With prices in a slump and production costs estimated to be up almost 30%, there has been a steady drain on cement profits. Since 1960, labor costs have increased 86% while fuel costs have risen 18%. Meanwhile, customer service costs have also soared owing to the competition for cement customers and the wider variety of available cement products. This search for sales advantage has in turn led to a higher Blaine number, which means more grinding and hence bigger mills, more power, and, once again, higher costs. New plants as well as expansions and revisions to existing plants are also costing more owing to higher