Recent economic forecast from Portland Cement Association (PCA) indicates that though the economic recession has almost ended and the economic sector has started gaining strength, the recession in the construction industry will continue to haunt it for the next 18 months thus blocking the consumption of cement.
PCA expects only a marginal increase of 2% in consumption during 2011, which is anticipated to increase to 8.5% in 2012 and to the top level of 18.5% in 2013 due to an upswing in public, commercial and residential sectors.
According to Edward Sullivan, Chief Economist at PCA, though the economy has reached self-sustaining growth stage, the deterrents to the construction industry continue to plague it and it will not witness any notable increase in its activities till 2012. He attributes the reasons such as the prevailing tight lending criteria, waning property values and reduced level of spending by the state infrastructure for the negative growth of the cement industry.
Sullivan anticipates growth in oil/gas well building and farm construction activities in 2011. He explained the increase in oil prices in the coming years will automatically increase the cement consumption by oil wells and will reach its pinnacle during 2011-2012 and afterwards. He anticipates a 9% growth in farm construction activities during the year 2011.
Portland Cement Association, based in Skokie, Ill, constitutes member cement companies in the United States and Canada. The association conducts regular programs on research, engineering, public affairs, market development and education.