What's New
|
| Despite myriad worries about the U.S. economic and construction
outlook, U.S. cement demand will set another record in 2005. Low
mortgage rates and continued strength in the housing sector are
key elements for the continued economic strength. While there
has been some weakening of cement demand in the Midwest and
Northeast, cement demand remains robust in the West and
Southeast. The Southwest was doing well until Hurricanes Katrina
and Rita hit. While short term losses in construction activity
and cement demand are likely, these disasters only increase the
long-term demand for new construction and cement use in these
states. For more information read the latest edition of
U.S. Cement Forecast. |
 |
|
 |
Strong gains in the value of the U.S. dollar versus foreign
currencies was a major reason for the flood of cement and
clinker imports to the U.S. in the 1980s. The dollar peaked in
1987 as measured by the cement-weighted exchange rate index from
R.O.I. Economic Consulting. Since that time, the
value of the dollar has been less important than excess U.S.
cement demand in spurring U.S. imports, which are at record
levels despite higher import prices. For more information read
World Trade and American Cement
Markets. |
|
| One of the most significant developments in recent years has
been the sharp increase in U.S. cement and clinker import
prices. Strong worldwide demand for cement coupled with huge
increases in ocean-going freight rates has made imported cement
both more expensive and harder to get for U.S. cement companies.
Nonetheless, imports are at record levels. However, higher
import prices have put strong upward pressure on domestic cement
prices. For more information read
World Trade and American Cement Markets
and U.S. Cement Forecast. |
 |
|
 |
Factory construction was probably the hardest hit construction
market in the last recession. The value of new manufacturing
construction put-in-place fell almost in half. Recovery began in
late 2002, but there is a long way to go before previous peak
levels are matched. For more details, read the latest edition of
U.S. Cement Forecast. |
|
The American cement industry had a great decade in the 1990s with production,
sales, and profits all at high levels. The 21st Century has so far also been
good for U.S. cement makers. However, the cement business is
unspectacular when compared to high technology, telecommunications, software,
biotechnology, and the internet. Fortunately, this is true both on the downside
as well as the upside (see chart). Monthly U.S. portland cement consumption is shown at a smoothed
seasonally-adjusted annual rate and is compared to three well-known stock market
indexes: NASDAQ, S&P 500, and Dow-Jones Industrial Average. All four series
have been indexed so that July 1995 equals one. Portland cement consumption rose
steadily if unspectacularly during the 1995-2005 period. It didn't mirror the
speculative stock market boom of late 1998 to early 2000 but also avoided
the crash from early 2000 to late 2002 when cement consumption was surprisingly close
to the stock market indexes in value but avoided the roller coaster ride of the
previous seven years.
With inflation and interest rates remaining low, U.S. construction activity
has remained at robust levels since 2000 despite the stock market's
problems. The lost equity wealth hasn't harmed home sales and consumer spending.
On the contrary, home sales have benefitted from the the perception of relative
investment stability and strength.
|
|
|
|
|
|
|
|
|
|
|
What's
new |
|
