PCA economist says cement consumption growth is coming

By |  September 16, 2013

An unusually wet spring and early summer dampened cement consumption for the first quarter of 2013, according to the Portland Cement Association (PCA), but its chief economist is still optimistic for strong growth in the construction sector in 2014 and beyond.

According to PCA’s latest forecast, cement consumption will increase 4 percent in 2013. Cement consumption will approach double-digit growth in 2014 and 2015, though, with 9.7-percent consumption increases in both years.

“Nearly two-thirds of the anticipated growth in 2013 cement consumption will be caused by gains in the residential construction market,” says Ed Sullivan, PCA chief economist. “Home inventories are declining, signaling that it is time to start building, while the lingering effects of damaged credit due to foreclosure activity have created a robust apartment demand.”

Sullivan predicts an increase in local spending on public construction beginning in 2016. This is key to cement consumption recovery as road construction accounts for the largest area of public cement consumption, he says.  An 11 percent consumption gain is forecasted for 2016.

Avatar photo

About the Author:

Kevin Yanik is editor-in-chief of Pit & Quarry. He can be reached at 216-706-3724 or kyanik@northcoastmedia.net.

Comments are closed