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Construction Growth Projected

pca-longApril 30, 2012 – Good news just in from the Portland Cement Association (PCA). Stronger than expected job creation and the beginning of a construction industry recovery means that gains in real construction spending will materialize this year—after seven years of consecutive declines. Increases in cement consumption will follow. PCA revised its fall forecast upward, anticipating a modest 3.7 percent increase in 2012, followed by a 7.6 percent jump in 2013 and a 14.1 percent increase in 2014.  The forecast includes marginal improvements to nonresidential construction, an upward revision to housing starts and an aggressive cement intensity gain, which is the amount of cement used per real dollar of construction activity. “Cement usage is greatest at the early stages of construction with foundation work.The retreat of building starts during the recession had a huge impact on consumption and intensity,” Ed Sullivan, PCA chief economist said. “A construction start rebound in 2012 coupled with concrete’s competitive price compared to other building materials translates to increases.”