Following the strongest cement consumption gains in seven years in 2012, cement consumption growth will continue in 2013 with a 6.2 percent increase, according to the latest forecast from the Portland Cement Association. The majority of market recovery is expected to occur in the second half of 2013.
“Recessions correct imbalances generated during boom periods,” said PCA chief economist Ed Sullivan in a news release. “Few economists doubt the generation of a large pent-up demand during the past several years.”
The PCA expects housing starts to reach nearly 1 million in 2013. Multifamily construction also continues to grow at a strong pace — PCA expects 318,000 starts in 2013, an increase of 29 percent over last year.
Public construction is a drag on cement consumption this year, Sullivan said. “However, as the economy gains momentum in 2014, job gains will strengthen states’ fiscal conditions and support stronger construction spending.”
The accelerated consumption predicted during the second half of 2013 is expected to carry into next year.
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