Source: Portland Cement Association

Bureaucratic delays in releasing funds coupled with long lags between outlays and construction activity for American Recovery and Reinvestment Act (ARRA) projects will lead to very little stimulatory impact on cement consumption in 2009, according to the most recent economic forecast from PCA chief economist Ed Sullivan. The forecast is now available as a Webcast on PCA’s home page, www.cement.org.

PCA expects total cement consumption to decline 22 percent during 2009 to 75 million metric tons. The meeting of total ARRA obligations in 2010 combined with the beginning of a sustained pick-up in the residential sector will contribute to a 10.9 percent increase in total cement consumption in 2010, followed by a 13.1 percent gain in 2011.

“The letting of ARRA dollars has been slower to develop than expected,” Edward Sullivan, PCA chief economist said. “A sustained and dramatic escalation of outlays must occur if a sizeable increase in highway construction is going to materialize in 2009.”