According to a Wall Street Journal Survey of Economists, inflation is expected to considerably drop by the end of 2023, but not fast enough to prevent a minor recession. Coupled with the new banking uncertainty, which may impact certain residential construction investments in a market already predicted to “cool off” in late 2023 and 2024, will a recession cause demand overall in the construction industry to decline? The paving market hasn’t been able to catch a break since the passing of the Bipartisan Infrastructure Act with high demand, supply constraints, workforce shortages, and soaring inflation, causing the paving market, in some areas, to be flat despite the federal investment. At ACPA’s Annual Meeting in Nashville, TN in December 2022, we hosted economist Ed Sullivan, the Portland Cement Association’s Senior Vice President and Chief Economist, who provided his thoughts about construction markets expected to decline in 2023 and beyond. In June, we will host Mike Ireland, President and CEO of the Portland Cement Association, to provide some additional insights on the cement industry’s forecast and whether workforce shortages and high inflation are expected to put pressure on supply. Don’t forget to register today!

Congress is back in session this week and the grappling with many major issues continues. Further impacting paving projects is the reauthorization of the FAA which contains the authorization of the Airport Improvement Program (AIP), a program that provides 50% of its funds to paving projects. On the House side, we can expect to see draft text before Memorial Day recess, however, passage of the bill will be potentially hindered by budget and debt ceiling discussions. Also, the congressional calendar is working against on-time passage as Congress only has approximately 10 weeks until its August recess. It’s likely that Congress will need to pass a short-term extension of the FAA’s current authorization before a full reauthorization bill is passed.

In the meantime, Chairman Steve Friess attended the National Concrete Consortium’s Spring Meeting in Savannah, GA and was able to sit down with ACPA’s Southeast Chapter. Eric Ferrebee presented on sustainability while Gary Mitchell presented at a workshop in Florida on overlays – more information on both below.

Also, see stories on a new chapter workshop, sustainability video resources, and more.

Cheers!