Portland Cement Association's Market Intelligence Group, a policy research, education, and market intelligence organisation, envisions infrastructure stimulation and growth in cement consumption over the next two years.
The analysis estimates that consumption will be around 99.3 million t in 2018, 102.1 million t in 2019 and 106.1 million t by the end of 2020 indicating a 4% rise.
A variety of positive economic factors, including the creased infrastructure spending and strong economy,“suggest a modest acceleration in real GDP, construction markets, and cement consumptions,” said Ed Sullivan, PCA Senior Vice President and Chief Economist.
The PCA analysis projects that significant infrastructure spending is not likely to occur until 4Q19, given the key steps that must occur, including passage of an infrastructure bill, federal and state paperwork, bid letting and review, and finally contract awards leading to construction.
“It will take time to implement a construction infrastructure programme from passage in Congress to the first shovel," added Sullivan. "This is an aspect often neglected by many economists. PCA has evaluated the time each process takes to impact actual construction activity. As a result, the timing of PCA’s impact of an infrastructure program on actual construction is later than most economists estimate.”
Read the article online at: https://www.worldcement.com/special-reports/18042018/modest-growth-forecasted-for-cement-manufacturers-in-2018-and-2019/