Construction Materials in Short Supply, Says Aggregate & Ready Mix Association of Minnesota.Business Editors/Building/Construction Writers MINNEAPOLIS--(BUSINESS WIRE)--May 25, 2004 As the construction season heats up for the summer, the economy improves and slow construction starts begin to turn around, reports are indicating possible cement shortages. Minnesota will not escape the impact during the 2004 construction season. Several factors have converged to create tight supplies of cement, the key ingredient in concrete. -- Strong construction markets exist in the U.S. and overseas. -- According to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. the U.S. Department of Commerce, construction spending reached an all time-high in March 2004. -- An unusually active winter for construction in the U.S. left little opportunity to build a strong inventory for spring when construction activity traditionally increases. The short-term solution used in the past to meet our local supply needs has been to import foreign cement. In the past several years about 25 percent of the cement consumed con·sume v. con·sumed, con·sum·ing, con·sumes v.tr. 1. To take in as food; eat or drink up. See Synonyms at eat. 2. a. in Minnesota came from overseas. We are not alone. According to figures from the U.S. Geological Survey The term geological survey can be used to describe both the conduct of a survey for geological purposes and an institution holding geological information. A geological survey , 23.2 million tons or 22.6 percent of all portland cement portland cement Binding agent of present-day concrete. It is a finely ground powder made by burning and grinding a limestone mixed with clay or shale. Its inventor, Joseph Aspdin (1799–1855), patented the process in 1824, naming the material for its resemblance to the was imported. The booming Asian economies have led to an increased demand for the foreign-produced cement that was filling the gap in our domestic production. In addition, the demand for all consumer goods consumer goods Any tangible commodity purchased by households to satisfy their wants and needs. Consumer goods may be durable or nondurable. Durable goods (e.g., autos, furniture, and appliances) have a significant life span, often defined as three years or more, and in Asia and other parts of the world has put a strain on the availability of transport ships and caused shipping rates to escalate es·ca·late v. es·ca·lat·ed, es·ca·lat·ing, es·ca·lates v.tr. To increase, enlarge, or intensify: escalated the hostilities in the Persian Gulf. v.intr. . These factors have caused imported cement to become more expensive and difficult to acquire. The length and severity of the shortages of cement in the U.S. have not yet been completely identified. To meet the increased demand, cement companies have plans to expand manufacturing capacity totaling more than 15 million tons between 2003 and 2010. Zoning laws, permits activity and regulatory roadblocks have long been a problem for heavy industries such as cement and will continue to limit the actual realized amount of expansion. While there is no guarantee of market certainty, some analysts are predicting further volatility throughout the year as seasonal cycles for construction continue. The fluctuating fluc·tu·ate v. fluc·tu·at·ed, fluc·tu·at·ing, fluc·tu·ates v.intr. 1. To vary irregularly. See Synonyms at swing. 2. To rise and fall in or as if in waves; undulate. v. price of raw materials has resulted in a commercially impractical im·prac·ti·cal adj. 1. Unwise to implement or maintain in practice: Refloating the sunken ship proved impractical because of the great expense. 2. situation where suppliers of raw materials cannot reliably anticipate materials costs. However, it should also be noted that the price of concrete products have been and will continue to be among the most stable of all construction products. The goal of the ready mix industry is to serve the state of Minnesota with an adequate and steady supply of concrete. Local ready mix concrete producers will continue to be the best source of information for current market conditions and its impact on concrete supplies. Additional information can also be found at http://www.cement.org/pca/shortageQA.asp Founded in 1950 as a state-wide, non-profit organization A non-profit organization (abbreviated "NPO", also "non-profit" or "not-for-profit") is a legally constituted organization whose primary objective is to support or to actively engage in activities of public or private interest without any commercial or monetary profit purposes. , the Aggregate and Ready Mix Association of Minnesota is committed to supporting the Aggregate and Ready Mix Industries through promotion, education, environmental and government issues. |
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