Cement Consumption Expected to Be Down Until 2009
2008 is shaping up as another down year for consumption of Portland cement as construction activity remains soft, according to a recent Portland Cement Association (PCA) Economic Research report.
U.S. consumption of Portland cement is expected to drop 10% this year — to 102.7 million metric tons — and an additional 3.6% in 2009.
“High fuel prices, acceleration of home foreclosures and the impact of the subprime crisis on credit standards are some of the current conditions that lead us to believe the economy is already in a recession,” said Ed Sullivan, PCA’s chief economist.
Sullivan projected a 26.5% decline in housing starts for 2008, with high home inventory levels depressing the residential sector until the second half of 2009. With close ties to economic activity, the nonresidential sector will post a 7% decline this year, he predicted.
“Nonresidential construction typically takes 18 months to recover,” said Sullivan. “This implies further declines in 2009, coupled with a slowdown in public construction activity during the same period.”
The PCA report forecasts a strengthening U.S. economy in the second half of next year as residential inventories are burned off and credit terms ease. This will set the stage for 5.2% growth in cement consumption in 2010, followed by an even stronger gain in 2011.
For information on resources available from NAHB’s Concrete Home Building Council, click here; or e-mail Kate Driscoll, or call her at 800-368-5242 x8362.
Attend the Spring Construction Forecast Conference in April
Plan to attend NAHB's Spring Construction Forecast Conference on Thursday, April 24 at the National Housing Center in Washington, D.C. The conference brings together the nation's premier housing economists and finance experts for an in-depth examination of the economic outlook for the housing industry.
Can't attend? Watch the conference webcast live.
For more information, or to register for the conference or webcast, visit www.nahb.org/cfc.
Want to Know the Housing Forecast for the Top 100 Metros?
Find out in HousingEconomic.com’s 2008 to 2009 Metro Forecast (free preview).
Get the metro forecast with in-depth analysis, overviews and downloadable Excel tables.
To learn more, visit www.HousingEconomics.com.
Concrete Can Do That — Take the Technologies Tour and See How
NAHB’s 2008 Concrete Technologies Tour gives attendees an inside look at the residential concrete industry and a chance to see the latest production techniques and building trends up close.
Concrete is cost-effective and green and is becoming one of the fastest growing sectors of the residential building industry.
The upcoming tour will be on June 1-3 in Charlotte, N.C.
For more information, visit www.nahb.org/ConcreteTour.
Systems-Built Homes: Get the Big Picture
Attend the 2008 Building Systems Councils Modular & Panel Plant Tour May 18-20 in Harrisburg, Penn.
Participants will tour several of the top modular factories, getting an insider’s look at the manufacturing process as well as an opportunity to make important contacts.
For more information, visit www.nahb.org/planttour.