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Stimulus Projects to Perk Up Gloomy Cement Demand by 2010
Cement consumption is expected to register significant declines this year because of soft demand from housing and all of its other market segments in all regions of the country, according to a recent economic forecast from the Portland Cement Association (PCA). But the Administration’s massive economic stimulus program and a stabilizing economy in 2010 are expected to bring manufacturers some relief.
Cement consumption in 2009 is expected to decline 17% to 77 million metric tons, following declines of 10% in 2007 and 15% in 2008.
From peak to trough, cement consumption is expected to decline nearly 45 million metric tons — the worst in U.S. history.
The good news, according to the forecast, is that the weakness is expected to be concentrated in the first half of this year. Buoyed by improvements in the overall economy, cement consumption next year is projected to rise 7% to a level of 83 million metric tons.
“Weakness in near-term cement consumption will largely stem from declines in the private sector in residential and non-residential construction,” said Edward Sullivan, PCA’s chief economist. “By the second half of 2010, stimulus spending should enter a phase that includes more traditional infrastructure projects that carry higher cement intensities.”
In addition, Sullivan said he expects housing starts to stabilize in the second half of 2010, although nonresidential construction is forecast to drop 27% in 2009 and continue to decline in 2010.
“Unemployment is expected to peak during the first quarter of 2010 to levels in excess of 10%,” he added. “This will lead to public sentiment for additional stimulus and more traditional, job-generating infrastructure spending. This suggests a significant increase in funding for the next transportation bill, possibly 40%,” he said.
 Tax Credit Web Site Looks at Opportunity of a Lifetime
Builders and other industry professionals can help spur home sales by referring prospective first-time home buyers to www.federalhousingtaxcredit.com. The NAHB Web site provides detailed information on the $8,000 federal tax credit for first-time home buyers included in the economic stimulus legislation signed into law by President Obama.
Consumers can use the Web site to find information on the tax credit — including a detailed question and answer section. It also includes information about other housing-related and small business measures in the legislation and a number of home-buying resources for consumers.
Spanish Version Also Online
A Spanish version of this increasingly popular Web site is also available to provide detailed information on the tax credit to Spanish-speaking first-time home buyers.
Industry professionals are encouraged to highlight either tax credit Web site when marketing to their potential first-time home buyer market.
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