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CEMENT AMERICAS • Fall 2014 • www.cementamericas.com 6 CEMENTSCOPE sector to build a better and fairer country, with health care and quality education for all." Ermirio de Moraes left Votorantim's board of directors and was rarely seen in public since being diagnosed with Alzheimer's in 2001. It's reported that he owned about 25 percent of Grupo Votorantim when he died. CTS Cement Reveals Organizational Changes Jerry Hoyle, president and CEO of Cypress, Calif.-based CTS Cement Manufacturing Corp., stepped down as president, effective Sept. 1. He assumed the position of vice chair- man of the Board, while retaining his position as CEO. Hoyle has been with CTS since 2011. CTS' Board also announced a change in the executive structure of the company with the creation of two divisional groups each focused on major growth opportu- nities for the company and equally sup- ported by production/operations. With the change, Frank Senatore as- sumed the position of president of retail and international sales, and Ken Vallens was promoted to president of engineer- ing sales and research. The company notes that it follows a practice of devel- oping employees and promoting from within, a strategy that "has served CTS well in the past and continues today." Current construction costs rose for the 31st consecutive month in August, ac- cording to IHS and the Procurement Executives Group (PEG). The current IHS PEG Engineering and Construction Cost Index (ECCI) registered 53.0 per- cent in August, softer than the July reading, but still in positive territory. The materials/equipment component of the ECCI eased to 53.5 percent, down 4 percent from the July reading. In August, six of the 12 components of the materials and equipment cate- gories showed higher prices. However, of the remaining components, five registered neutral prices relative to July. Fabricated steel strengthened, while alloy steel pipe and ready-mix concrete have remained elevated since May. According to survey respondents, higher concrete prices appear to be mostly focused in the Gulf Coast region due to a number of factors, including delivery issues and labor constraints. Although nationally, the cement and concrete markets appear well supplied, pockets of tightness are developing, said Charles McCarren, pricing and pur- chasing analyst for IHS. "Unfortunately, the cement and ready- mix industries continue to struggle with fallout from the Great Recession and the collapse in construction activ- ity in 2008 and 2009," explained Mc- Carren. "In most markets, these industries are keeping up with de- mand, which remains subpar. How- ever, in the Gulf Coast especially, many producers have a tough time keeping pace with the swelling tide in demand. "Utilization rates in Texas and other Gulf states remain among the highest in the nation," McCarren continued. "Although we expect a supply re- sponse to eventually relieve some of the pressure, it would not be unrea- sonable to expect (cement and ready- mix concrete) prices there to continue escalating in the single digits over the next year, or almost twice the national average." The current subcontractor labor market index dropped to 51.8 percent in Au- gust, down from 52.3 percent in July. While still rising, this is the lowest read- ing for the current labor index since Jan- uary 2012. The majority of regions registered neutral prices relative to July. Nevertheless, respondents again ex- pressed concern over tightness in skilled labor markets in the Gulf Coast region, specifically referencing the tight market for qualified welders. The six-month headline expectations index sagged to 67.6 percent in Au- gust, down from the second-highest reading on record in July. This re- flected softer readings in both the ma- terials/equipment and subcontractor labor subcomponents of the index. The materials/equipment portion came in at 68.9 percent, with pockets of strength focused in alloy pipe and ready-mix concrete. Expectations for subcontracted labor registered 64.5 percent, down from 74.8 percent in July. The regional detail conveyed strong expectations in the U.S. South region, driven by expectations for projects in the hydrocarbon sector to accelerate over the second half of this year and into 2015. Report: Cement, Ready-Mix Prices Remain Elevated