Pit & Quarry, December 2009
S P E C I A L R E P O R T 4662 billion following the 25 percent decline predicted for 2009 The U S construction market in 2010 will be helped by growth from several sectors following three straight years of decline that brought total construction activity down 39 percent from its mid decade peak said Robert A Murray vice president of economic affairs for McGraw Hill Construction The benefits from the stimulus act will broaden in scope lifting not just highway construction but also environmental public works and several institutional structure types he added With continued improvement expected for single family housing after reaching bottom earlier this year the overall level I believe the worst is behind us We will continue along the path of two steps forward and one step backward for some time but I do see the light at the end of the tunnel MARK KRAUSE Lafarge North America of construction activity should see moderate expansion in 2010 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 the Portland Cement Association PCA 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 109 percent increase in total cement consumption in 2010 followed by a 131 percent gain in 2011 The letting of ARRA dollars has been slower to develop than expected said Edward Sullivan PCA chief economist The public construction sector which typically accounts for 50 percent of cement consumption also is hampered by large state deficits caused by a perfect storm of adverse economic conditions and job layoffs leading to declines in state tax revenue Sullivan expects that as jobs are created and consumer spending returns public construction spending will rebound but not until 2011 The residential sector has largely run its course as a significant cause of cement consumption declines and will start to be a strong contributor to growth in late 2010 early 2011 he said 14 PIT QUARRY December 2009 www pitandquarry com
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