Cement Americas

FALL 2017

Cement Americas provides comprehensive coverage of the North and South American cement markets from raw material extraction to delivery and tranportation to end user.

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www.cementamericas.com • Fall 2017 • CEMENT AMERICAS 11 border wall. For example, the U.S. cement industry is operating at only 79 percent of production capacity. Manufacturers are add- ing even more domestic produc- tion capacity each year: 1.3 mil- lion metric tons in 2016 alone, and another 1.6 million metric tons planned by 2018. We can do this with American cement, and we're ready to roll. • Delay has cost. The current con- dition of our infrastructure is impacting the economy and soci- ety every day. Because these costs are spread over the entire econo- my and population, they are not obvious – but they are immense. Congress and the President must therefore act soon. We're ready to go when you are." Cement Consumption Growth Predicted For Next Two Years The Portland Cement Association (PCA) expects U.S. cement con- sumption 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 infra- structure spending and tax reform. "While fiscal stimulus will boost cement consumption, there are oth- er economic indicators that will tem- per growth," Sullivan said. "Infra- structure policies also take time to implement, so you could be looking at 11 to 22 months before new proj- ects 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 pub- lic construction and housing mar- kets. "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." Spike in Air Travel Propelling Demand for Cement Increased demand for U.S. air travel is expected to help drive increased cement consumption over the next 25 years, according to a recently released report from the Portland Cement Association (PCA). Pop- ulation spikes, overall econom- ic growth and airport expansion are among the factors driving the demand for more air travel, noted the association. "With more people traveling by air, you will need more capacity at air- ports – that means more cement is needed for concrete used in runways, terminals and other airport facilities," said PCA Chief Economist and Senior Vice President Ed Sullivan. According to the principal author of the PCA study, Brian Schmidt, there are several factors driving airport-related cement production, including business and leisure trav- el, as well as the need to move more cargo by air. Personal air travel: The number of personal travel passengers is pro- jected to grow to 910 million annual passengers by 2040, compared with 625 million in 2017. But depending on a variety of factors, the number of passengers could climb as high 1.015 billion annual passengers. Average annual growth could top 2.1 percent. Business travel: The number of business travelers is projected to grow to as high as 409 million annual passengers by 2040, compared with 279 million in 2017. Average annual growth could reach 1.7 percent. Cargo carried by air: Cargo freight tons are expected to climb as high as 21.0 million tons annually by 2040, compared to 12.7 million tons in 2017, representing an average annual growth of 2.2 percent. PCA expects cement consumption in the airports market to approach 2.4 million metric tons (Mt) annually by 2040 – possibly topping 2.6 Mt – compared with current levels of 1.5 Mt. According to PCA, areas of air- port-related cement consumption is likely to break down in the following way: • Of the 2.4 Mt total, 65 percent, or 1.56 Mt, will likely be attributed to runway replacement. • Runway expansion is projected to contribute around 561,000 met- ric tons (t), accounting for about 23 percent of airport-related con- sumption. • New terminal expansion is expect- ed to account for 11 percent of consumption in the airport market and generate around 267,000 t of consumption.

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