PCA Market Intelligence expects cement consumption will grow by 1.7 percent in 2020, according to PCA Senior Vice President and Chief Economist Ed Sullivan, who predicts cement consumption will be at moderate growth levels through this year and into 2022.
The potential for stronger than expected construction in residential construction could add one full percentage point to this outlook, Sullivan says.
“The economy rests on two pillars, consumer spending and labor markets,” according to Sullivan during PCA’s press briefing at World of Concrete. “As long as the economy continues to grow and create jobs, the economy will remain on solid ground and continue to support cyclical portions of the cement market. But the economic recovery is aging and losing its zip. Economic growth will gradually slow, along with construction activity and cement consumption growth rates.”
The aging of the recovery makes the economy, and cement consumption, more vulnerable to potential disruptions. Economic challenges include slower global economic growth, declining consumer sentiment, trade issues, and the threat of coronavirus fully hitting the United States, he says.
Photo depicts sustainable building design & construction. Photo source: PCA website.