A weak U.S. economy will severely impact cement consumption and the construction industry, reports the Portland Cement Association, a Skokie, Ill.-based trade group. In 2008, Portland cement consumption is expected to drop 11%, followed by an additional 5.5% dip in 2009. PCA predicts total cement consumption to be 101.7 million tonnes this year, which is down 26.3 million tones from the industry's peak in 1995.
"We are currently in the third year of a four-year industry contraction that began in 2006," says PCA chief economist Edward Sullivan. "High fuel prices, slow job creation, and tight lending standards will all adversely impact the entire spectrum of construction activity."