Cement usage to decline

How things change in a year. According to the most recent forecast from the Economic Research department at Portland Cement Association, the on-going correction in residential construction is expected to drag down overall 2007 construction activity. Despite a record 18 percent growth since 2003, cement consumption this year is projected to decline by 1.5 percent. Chief economist Ed Sullivan anticipates gradual gains throughout the second half of 2007, but not large enough to offset the year's first half weaknesses. The increased construction activity that is expected to begin mid-year, however, will carryover to 2008 and contribute to an estimated 3.9 precent growth in consumption. Gains in nonresidential and public construction, says Sullivan, will not be large enough to offset the harsh downward trends in the residential market. Sullivan's 2007 projection reflects a nearly 6 million metric ton decline in residential cement consumption levels compared to 2006. "Single-family start activity and residential cement consumption will not recover until the existing inventory level of homes is reduced," he says. Your comment?