March 09, 2017

‘Timber Innovation Act’ Is Anti-Competitive Government Promotion of Wood Building Materials

Bill Sets Un-level Playing Field, Threatens Critical Manufacturing Jobs

March 9, 2017, WASHINGTON, D.C. – The Portland Cement Association (PCA) today urged Congress to reject the so-called “Timber Innovation Act” introduced this week in both the U.S. Senate and House of Representatives, noting it unfairly puts the federal government in the business of promoting wood-related building materials over others.

“This bill is a blatant attempt by the wood industry to secure a competitive advantage through legislative means,” said PCA Executive Vice President A. Todd Johnston.  “Our government should not be in the business of promoting one building material over another.”

Among its provisions, the bill promotes the wood materials sector by incentivizing state and local governments, universities and private companies with federal funds to conduct research and development, outreach and education to advance the use of mass timber products in construction.

“Construction-material decisions should be driven by the marketplace, through fair competition based on consumer demand,” Johnston said.  “U.S. cement consumption has yet to return to pre-recession levels, making it even more important that our industry not be undermined by policies like these from the federal government.”

According to PCA, the U.S. cement industry is currently operating at roughly 79 percent of capacity, estimated at 108 million metric tons per year.  Activities related to cement and concrete production in the U.S. employ nearly 535,000 workers, with a total annual payroll of approximately $25 billion.  Of this, cement manufacturing represents over 14,300 workers with an annual payroll of about $1 billion.

“Our country’s cement manufacturers are ready to help rebuild our nation’s infrastructure and compete for business as the housing and construction sectors slowly recover,” Johnston said. “We want fair competition – bills like these would rig the game.”

The U.S. cement industry has facilities in every state in the continental U.S., including over 90 manufacturing plants with annual shipments valued at approximately $9 billion.  PCA members account for 92 percent of all U.S. cement production capacity.  To learn more about cement manufacturing and capacity, visit www.cement.org/data. 

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For more information: Holly Arthur, harthur@cement.org 202-719-1979.

About PCA: 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 92 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.