A spring construction surge coupled with limited availability of ships for importing is tightening cement supplies in some areas of the United States, particularly Florida, sparking interest from allied groups, cement customers, the general public, and the national media. The cement shortages appear to be the most prevalent the industry has observed since 1994, when economic recovery and increased highway funding from the ISTEA bill combined to spawn widespread reports of limited powder supplies.

While worldwide production capacity is ample, the Portland Cement Association notes, the booming Asian economies have absorbed most shipping capacity and made cement transport much more expensive. With 23% of 2003 cement consumption coming from imports, according to the U.S. Geological Survey, states such as Florida are particularly hurt, despite additional capacity brought online recently from Suwannee American Cement (Branford, 900,000-ton greenfield plant, 2003) and Rinker Materials Corp. (Miami, 400,000-ton expansion, 2001). Due to mild winter weather and a hot construction market, many cement plants were kept from building up their stockpiles and led them to defer maintenance shutdowns until spring.

The timing couldn't be worse for cement makers when considering construction spending reached an all-time high in March 2004, with a seasonally adjusted annual rate of $944.1 billion, the Commerce Department reported. The 1.5% increase, compared with February activity, exceeded the economists' expectations. In addition, shipping rates have skyrocketed and availability of ships is limited thanks to the unexpected Asian boom. These conditions are making imported cement more expensive and difficult to acquire.

While a short-term solution to the shortages is still unclear, cement companies have announced plans to expand manufacturing capacity totaling more than 15 million tons nationwide between 2003 and 2010. However, zoning laws, permit activity, and regulatory roadblocks continue to be a problem for heavy industries such as cement and will continue to limit the actual realized expansion.