Clearing economic vision points to a change in construction activity, with nonresidential construction poised to lead the way, according to the Spring 2003 Forecast from the Portland Cement Association.

“Robust economic activity is expected to characterize 2004,” says PCA Chief Economist Edward J. Sullivan. “The economic momentum materializing in the second half of 2003 will be bolstered by tax cuts, stronger job creation and a full-fledged recovery in investment spending.”

PCA expects residential construction activity to remain at historically strong levels despite predicted higher interest rates. In addition, sustained, stronger economic growth will generate a revival in nonresidential construction activity. By the end of 2004, nonresidential construction spending is expected to become the growth leader.

Forecasting construction activity, portland cement consumption, and other key economic indicators from 2003-2007, the PCA Spring 2003 Forecast points to three critical elements for recovery: sustained consumer spending strength; manufacturing and labor market recovery; and investment spending recovery.

Despite the more optimistic outlook for 2003 economic growth, nonresidential construction will remain weak until the manufacturing and labor markets recover. However, the economic drivers for a robust 2004 will soon take shape in the near term.

The near-term public construction outlook contains significant downside risk reflecting the severe budget constraints faced by state and local governments. Reduced highway spending remains a critical threat in the near term. Nonetheless, many states accept the notion that capital expenditures should be accelerated. Overall, PCA believes that the state budget crisis will adversely impact construction spending during 2003 and 2004.

National Stone, Sand & Gravel Association 2003 Gold Eagle Award Winners

Company	Facility	Location
Large Category
Lafarge NA Vulcan Materials Martin Marietta Aggregates	Marblehead Quarry Rockingham Quarry Beckmann Quarry	Marblehead, Ohio Rockingham, N.C. San Antonio, Texas
Medium Category
Rinker Materials Corp. Vulcan Materials Co. Hedrick Industries Conco Quarries, Inc.	474 Sand Mine Royal Stone Quarry Grove Stone & Sand Quarry Willard, Mo.	Clermont, Fla. Rockville, Va. Swannanoa, N.C. Willard, Mo.