ModernMetals.com reported today that the AIA Consensus Construction Forecast “expects the industry to experience slower growth, at a rate ranging from 3.5 percent to 4 percent, for the remainder of 2017 and through 2018.” Following two years of solid growth, 2017 has not displayed the same promising growth as previously hoped. Economists cite as possible reasons for the slowdown as sluggish U.S. economic growth, general uncertainty and concerns among construction industry professionals, and certain vulnerable construction sectors (e.g. retail, industrial, healthcare and education).
However, it should be noted that while the rate of growth has pulled back somewhat, there is still growth, as evidenced by the continued and “steady pace of construction starts across the country,” according to Attilio Rivetti, Preconstruction and Procurement for Turner Construction Co, and author of the Turner Building Cost Index.
The Portland Cement Association (PCA) has updated its annual forecast of cement consumption to show 2.8 percent growth in 2018. This number is down from the projections released earlier in the year, and are based on poor weather and lower anticipated public sector budgets. However, PCA notes that a strong federal infrastructure bill could have a positive impact on cement consumption.