Spring 2017 Forecast Factors U.S. Infrastructure, Tax Reforms, Labor Issues into Outlook
May 24, 2017, Calgary, Alberta – The Portland Cement Association (PCA) announced it expects U.S. cement consumption to reach 3.5 percent annual growth during the remainder of 2017 and 2018, based on analysis of data and policies likely to impact the industry in the years ahead. Speaking before the IEEE-IAS/PCA Cement Conference in Calgary, Alberta, Canada, PCA Senior Vice President and Chief Economist Ed Sullivan said that while details on specific federal U.S. policies are not yet fully available, the association is forecasting growth in the years ahead using conservative baseline estimates for factors such as infrastructure spending and tax reform.
“While fiscal stimulus will boost cement consumption, there are other economic indicators that will temper growth,” Sullivan said. “Infrastructure policies also take time to implement, so you could be looking at 11 to 22 months before new projects truly get underway.”
Tax reform will have a key impact on cement consumption, as it drives consumer spending and confidence that play heavily with the housing sector, according to PCA.
“When you hire a worker, you hire a taxpayer,” Sullivan said noting that additional funds generated from consumer taxes and spending will help drive moderate growth in public construction and housing markets.
“The underlying fundamentals supporting economic growth are positive, though we’ll maintain a watch on how the U.S. government addresses possible inflation and immigration policy,” Sullivan said. “This confidence in stable, sustained growth in cement consumption is likely to be unchallenged through 2018.”
For more information, contact: Holly Arthur, email@example.com 202-719-1979.
The Portland Cement Association (PCA), founded in 1916, is the premier policy, research, education, and market intelligence organization serving America’s cement manufacturers. PCA members represent 93 percent of U.S. cement production capacity and have facilities in all 50 states. The association promotes safety, sustainability, and innovation in all aspects of construction, fosters continuous improvement in cement manufacturing and distribution, and generally promotes economic growth and sound infrastructure investment. For more information, visit www.cement.org.