The Portland Cement Association (PCA) expects U.S. cement consumption to grow 3.5 percent during the remainder of 2017 and 2018, based on data and policies likely to impact the industry in the years ahead.
Ed Sullivan, PCA senior vice president and chief economist, says that although details on specific U.S. policies are not fully available yet, PCA is forecasting growth using baseline estimates for factors such as infrastructure spending and tax reform.
“While fiscal stimulus will boost cement consumption, there are other economic indicators that will temper growth,” Sullivan says. “Infrastructure policies also take time to implement, so you could be looking at 11 to 22 months before new projects truly get underway.”
In addition, tax reform will have a key impact on cement consumption, according to PCA.
“When you hire a worker, you hire a taxpayer,” Sullivan adds. “The underlying fundamentals supporting economic growth are positive, though we’ll maintain a watch on how the U.S. government addresses possible inflation and immigration policy. This confidence in stable, sustained growth in cement consumption is likely to be unchallenged through 2018.”
The Portland Cement Association, founded in 1916, is a policy, research, education and market intelligence organization serving U.S. cement manufacturers.