Survival Economics 2008

Presented at Global Gypsum Conference 2007 by Bob Bruce PhD

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.

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