According to a new report from the Freedonia Group, demand for precast concrete products in the US is forecast to rise by 6.4% annually to reach US$12.2 billion in 2018, thanks to rebounding construction activity. Demand for precast concrete products will be boosted by their ability to reduce the time and expense of construction projects while also improving quality. This will enable precast concrete products to take market share from more established materials, such as the site-poured ready-mix concrete and steel often used in construction projects.
Nonresidential building construction applications accounted for the largest share of precast concrete products demand in 2013 and are expected to see the most rapid gains in demand going forward. According to analyst Matt Zielenski, “Advances will be fuelled by rebounding nonresidential building construction expenditures and rising interest in precast concrete products because of their performance properties, such as their ability to support the roofs of large-sized structures.” Demand will also benefit from precast concrete products’ ability to mimic building materials that are more expensive and difficult to install, such as brick and natural stone.
The residential market for precast concrete is also forecast to see above average growth, rising 7.9% annually to US$2.3 billion in 2018. Strong gains in housing completions will spur demand for structural building components, while a more favourable lending environment will make it easier for homeowners to take out home equity loans to fund home improvement projects. This will boost demand for roofing tiles, siding, and fencing for improvement and repair projects.
Demand for precast concrete products in the nonbuilding market is expected to rise modestly through 2018. Overall gains will be restrained by tepid growth in government spending, which will limit the funds available for infrastructure construction. However, advances will be supported by the need to repair the nation’s aging network of bridges, highways, roads, water and sewer systems, and power distribution grids. Precast concrete products – such as bridge components, paving slabs, and manholes – are often specified due to their desirable performance properties.
Precast Concrete Products is available now from the Freedonia Group.
Adapted from press release by Katherine Guenioui
Read the article online at: https://www.worldcement.com/the-americas/20012015/report-forecasts-64-percent-rise-in-demand-for-precast-169/