SKOKIE, IL—Although the construction season may have opened a bit late and single-family housing starts were weaker than expected, a recently released report from the Portland Cement Association shows that cement consumption in the US will meet the 2014 forecast.
Based in Washington, DC, with offices in Skokie, a suburb of Chicago, the PCA represents American cement companies. It conducts market development, engineering, research, education, and public affairs programs.
PCA's cement forecast remains mostly unchanged since September. "The United States' cement market is expected to grow 8.2% in 2014, followed by similar rates of growth in 2015 and 2016," says PCA chief economist and group vice president Edward Sullivan. "However, minor adjustments have been made regarding the construction sub-sectors. Housing starts, for example, have been trimmed slightly compared to forecasts released earlier in 2014."
While single-family housing starts have not reached projected levels, the report indicates that developers have put more emphasis on multifamily starts. As reported in GlobeSt.com, mortgage standards remain strict, and combined with demographic trends this has pushed more potential homebuyers into rental units.
In addition, PCA has integrated the recent fall in oil prices into the forecast projections for the paving sector. Sullivan believes the gains in the labor market show that economic fundamentals are strengthening. “Sustained gains in monthly job creation, stronger state and local tax receipts, more favorable return on investments for commercial building and stronger household formation can lead to stronger construction spending in 2015.”
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