PCA: Economy Takes Toll on Cement Consumption

Words: Bronzella Cleveland

MayJune 2008
Industry News

PCA: Weak Economy Takes Toll on Cement Consumption, Construction Industry as a Whole

According to the Portland Cement Association (PCA), the struggling U.S. economy is being reflected in cement consumption and the construction industry as a whole. The association reported recently that Portland cement consumption is expected to drop 11 percent this year, followed by an additional 5.5 percent in 2009. The PCA predicts total cement consumption in this year to be 101.7 million metric tons.

“We are currently in the third year of a four-year industry contraction that began in 2006,” Edward Sullivan, PCA chief economist said. “High fuel prices, slow job creation, and tight lending standards will all adversely impact the entire spectrum of construction activity.”

Sullivan said in a released statement that while harsh residential conditions continue to act as a significant drag on cement consumption, the non-residential sector also would see large declines for the next two years.

“Although it grew nearly 11 percent in 2007, non-residential construction spending is expected to fall almost eight percent in 2008 and another 12 percent in 2009,” Sullivan said. “Non-residential construction is closely tied to economic activity. As the economy softens, the expected return on commercial investments decline, reducing the incentive to build and expand.”

Further, the PCA predicts a continued slowdown in public construction, which the association says accounts for nearly half of total cement consumption in the United States. The downward trend will continue through 2010, the PCA reports.

The PCA targets the second half of 2010 with the trend of strong growth in cement consumption. By this time, it says, all regions of the country should be experiencing a recovery in housing, and non-residential construction will be on the upswing. MD

MASONRY STRONG Podcast Episode 1 Recap: Jeff Buczkiewicz

On the first episode of the MASONRY STRONG Podcast, MCAA President Jeff Buczkiewicz talked about his journey into the masonry industry, how he’s seen the industry change, and how he got into his position at the MCAA. Jeff’s Early Days and Entry Into the I

About: Featured
The GT30: A Block Laying Robot by Shanghai Intelligent Masonry Technology

China is the world's largest construction market and the largest producer and user of various types of building blocks (AAC blocks, hollow concrete blocks, porous clay sintered blocks, etc.). According to industry association statist

About: Featured
Brick in Architecture Awards is Now Open!

Lay the Foundation for Success: Enter the 2024 Brick Awards Today! The Brick in Architecture Awards celebrates the world’s most innovative and sustainable architectural designs, all centered around the creative use of clay

About: Featured
Concrete Masonry Checkoff Program Webinars

Join us for an insightful Program Webinar on October 29th at 12 PM ET/11 AM CT, where you will hear directly from industry leaders Jeff Buczkiewicz and Ryan Shaver. They will discuss two pivotal programs shaping the future of the masonry industry: the Nat

About: Featured