Charles R. Goulding and Preeti Sulibhavi delve into Quikrete’s transformative acquisition of Summit Materials, exploring its impact on 3D printing, sustainability, and construction innovation.
In November 2024, Quikrete Holdings, a leading U.S. manufacturer of concrete and building materials, announced its US$11.5 billion acquisition of Summit Materials, a major producer of aggregates, cement, and ready-mixed concrete. This move, set to finalize in 2025, marks one of the largest consolidations in the construction materials industry. Quikrete aims to leverage Summit’s resources to strengthen its position in North America, enhancing its vertically integrated operations and expanding its geographical reach.
While Quikrete’s financial data remains private due to its family-owned status, Summit Materials reported 2023 revenues of approximately US$2.5 billion, employing over 5,000 people. Quikrete, with its broader portfolio spanning packaged cement products, hardscapes, and infrastructure solutions, employs an estimated 13,000 workers globally. The deal merges two complementary businesses, combining Quikrete’s consumer and industrial market dominance with Summit’s extensive infrastructure and ready-mix capabilities.
The acquisition aligns with the broader trend of consolidation in construction materials, creating efficiencies in production, distribution, and innovation. By integrating Summit’s aggregates and cement production with Quikrete’s established concrete products, the new entity is positioned to compete more effectively in both traditional construction and emerging sectors like green concrete and 3D printing.
The transaction underscores Quikrete’s strategy to diversify its offerings. Recent acquisitions, including Pavestone and Rinker Materials, have prepared the company to capitalize on growing demand for sustainable and innovative construction solutions.
The merger could accelerate the adoption of concrete 3D printing, an emerging technology for residential and infrastructure projects. 3D printing uses specialized concrete mixes, including green concrete made with recycled materials or reduced CO2 emissions, to construct buildings faster and more sustainably. With expanded resources from Summit, Quikrete can invest in the development and supply of these advanced materials, supporting the growing 3D printing market.
By integrating Quikrete’s expertise in engineered products with Summit’s production capacity, the company is poised to address challenges like material consistency, scalability, and cost-effectiveness. This synergy could make 3D printed homes and structures more accessible to a broader market.
Quikrete has been actively utilizing 3D printing technology, particularly in collaboration with Contour Crafting Corporation (CC Corp), to develop specialized concrete mixes for automated construction. This technology aims to address challenges like housing affordability and disaster relief by enabling the rapid construction of homes. Their 3D printable concrete includes advanced properties such as shape retention (thixotropy), rapid setting, and dimensional stability, tailored for layer-by-layer application in automated processes. A notable project involves building four low-income housing units in Los Angeles in 2020, showcasing the potential of this technology to produce durable, cost-effective homes quickly.
Expanding Infrastructure Through 3D Printing
The combined capabilities of Quikrete and Summit could facilitate large-scale infrastructure projects using 3D printing. Potential applications include:
- Affordable Housing: Faster and cheaper construction of housing units in urban and rural areas.
- Disaster Relief: Rapid deployment of durable, low-cost shelters in response to natural disasters.
- Bridge and Road Construction: Use of preprinted concrete segments for faster assembly and reduced on-site labor.
- Sustainability Projects: Green concrete solutions for eco-friendly urban developments and retrofitting older infrastructure.
With governments worldwide increasing investments in infrastructure and sustainability, Quikrete’s expanded operations may play a crucial role in meeting these demands. For instance, the U.S. has seen growing interest in adopting 3D printed structures for federal housing initiatives and disaster resilience, presenting opportunities for innovation and market growth.
The Research & Development Tax Credit
The now permanent Research and Development (R&D) Tax Credit is available for companies developing new or improved products, processes and/or software.
3D printing can help boost a company’s R&D Tax Credits. Wages for technical employees creating, testing and revising 3D printed prototypes are typically eligible expenses toward the R&D Tax Credit. Similarly, when used as a method of improving a process, time spent integrating 3D printing hardware and software can also be an eligible R&D expense. Lastly, when used for modeling and preproduction, the costs of filaments consumed during the development process may also be recovered.
Whether it is used for creating and testing prototypes or for final production, 3D printing is a great indicator that R&D Credit-eligible activities are taking place. Companies implementing this technology at any point should consider taking advantage of R&D Tax Credits.
Conclusion
Quikrete’s acquisition of Summit Materials represents a pivotal moment for the construction materials industry, combining scale, innovation, and sustainability. The deal not only consolidates two major players but also positions the new entity as a leader in emerging technologies like concrete 3D printing. By harnessing Summit’s production capabilities and Quikrete’s market reach, the merger has the potential to revolutionize the building materials sector while contributing to critical infrastructure and housing needs in the coming years.
