Cement Forecast Up Thru 2012 and Beyond

Cement consumption will increase aggressively over the next three years, according to a leading industry analyst.

After seven consecutive years of declines, signs of a construction industry recovery and unexpectedly strong job creation led the Portland Cement Association (PCA) to predict growth in cement consumption through 2012 and beyond.

The PCA forecast expects a modest 3.7 percent growth in 2012, based on indicators that include slight improvements to nonresidential construction and an upward revision to housing starts. The forecast, revised upward for 2012, also estimates growth will jump to 7.6 percent in 2013 and 14.1 percent in 2014. Aggressive gains in cement intensity, measured by the amount of cement used per construction dollar spent, are also in the cards as the industry gets back on track.

''Cement usage is greatest at the early stages of construction with foundation work. The retreat of building starts during the recession had a huge impact on consumption and intensity,'' said Ed Sullivan, PCA chief economist. ''A construction start rebound in 2012 coupled with concrete?EUR??,,????'???s competitive price compared to other building materials translates to increases.''

Continuing and consistent growth in employment and the rest of the economy should eliminate the issues hobbling the construction industry, Sullivan said. The adverse effects of the oversupply of distressed homes on the market ?EUR??,,????'??? such as falling home values and an abnormally wide price disparity between new and existing homes ?EUR??,,????'??? will fade as the recovery continues and expands. PCA expects all sectors of construction to be positive by 2014-2015, creating large gains in cement consumption.