After seven straight years of declines, then Portland Cement Association (PCA) expects cement consumption to increase modestly this year and at a greater rate in 2013 and 2014. PCA is basing its forecast on stronger-than-expected job creation and the construction industry’s current recovery.
An increase in jobs coupled with the industry’s recovery means gains in real construction spending, PCA says. The two developments are expected to result in more cement being consumed.
PCA is now anticipating a 3.7 percent increase in cement consumption this year, followed by a 7.6 percent increase in 2013 and a 14.1 percent increase in 2014.
“The retreat of building starts during the recession had a huge impact on consumption and intensity,” says Ed Sullivan, PCA chief economist. “A construction start rebound in 2012, coupled with concrete’s competitive price compared to other building materials, translates to increases.”