Displaying items by tag: Portland Cement Association

US: The Portland Cement Association (PCA) has welcomed the confirmation of Scott Pruitt as the administrator of the Environmental Protection Agency (EPA) by the US Senate.

“We congratulate Pruitt on his confirmation and look forward to working with him in the years ahead,” said PCA president and chief executive officer (CEO) James G Toscas. “His experience and background are strong indicators that we will see a common-sense approach to regulations that protect public health and the environment. We have always believed that the best regulatory solutions derive from adherence to the intent of the enabling legislation, together with an honest consideration of the perspectives and concerns of all involved, including public stakeholders, the regulating agency and the regulated industry. We believe and expect that Pruitt will restore balance to the regulatory process."

This week the US Portland Cement Association (PCA) revised down its forecast for the rise in cement consumption in 2016 to 2.7% from 4%. It also lowered its prediction for 2017, blaming political uncertainty around the presidential election, inflation and slower construction activity. Global Cement Magazine editorial director Robert McCaffrey pointed out on LinkedIn that he was surprised by the revision down in 2017 given the rhetoric by president-elect Donald Trump to invest in large infrastructure projects.

Clearly the PCA is playing it cautious as a politically unknown entity, Trump, slides from campaign trail promises to executive power delivery. Backing them up are the latest figures from the United States Geological Survey (USGS) that show that both cement production and shipments fell slightly in the third quarter of 2016. In the quarter before the election in November 2016 the cement market slowed down. The hard bit is working out why. As we pointed out in a review of the US cement industry in the May 2016 issue of Global Cement Magazine the PCA had previously downgraded its forecast in 2016 due to economic uncertainty despite strong fundamentals for the construction industry. Then, as now, the great hope for the US cement industry was infrastructure spending down the pipeline, at that time the Fixing America’s Surface Transportation Act. At this point it doesn’t seem to have had much of an effect.

Industrial and economic forecasters aren’t the only ones who have a hard time of it in 2016. Political pollsters have also been caught out. Surprises came from the UK’s decision to leave the European Union and the election of Trump. Neither result was widely expected in the media. As explained above, should Trump make good on his building plans then if any cement company based its plans on a forecast dependent on a Hilary Clinton win then it may have lost money.

The power of forecasts has even greater potential effects in developing markets where the corresponding financial risks and rewards are higher. After all, why would any cement company invest tens of millions of US dollars for a cement grinding plant or hundreds of millions for an integrated plant unless there was some whiff of a return on investment?

This then leads to the problems Dangote has reportedly been having with its plant in Tanzania. Amidst a flurry of local media speculation in late November 2016 about why its Mtwara plant had a temporary production shutdown, Dangote’s country chief clarified that it was due to technical problems. It then emerged this week that Dangote’s owner Aliko Dangote met with President John Magufuli to agree a gas supply agreement to the plant. The point here being that even if the market conditions and demographics seems conducive to profit, as is the case in Tanzania, if the local government changes any incentives agreed at the planning stage then everything can change. At this point forecasts based on data become moot.

There’s a great quote from the US pollster Nate Silver that goes, “The key to making a good forecast is not in limiting yourself to quantitative information.” In terms of election campaigns run at a time of upheaval that might mean listening to people more than looking at polling data. In terms of a cement company operating in Africa that might mean fostering links with the local government to ensure no sudden policy changes catch you off-guard. And in the US that might just mean cement company analysts have to follow Donald Trump’s Twitter account.

US: The Portland Cement Association (PCA) has lowered its forecast for cement consumption in 2016 to 2.7% from a previous estimate of 4%. It has also revised downwards its forecast for 2017 to 3.1% from 4.2%, attributing the declines to post-election political uncertainty, inflation and slower construction activity.

“President-elect Trump continues to shape his cabinet and policies, thus making it difficult to forecast potential outcomes at this point,” said PCA Chief Economist Ed Sullivan. “The impact of uncertainty is expected to be compounded by increased inflationary expectations which will impact long-term bonds and loans, such as mortgages – to the detriment of cement consumption.”

In the meantime the PCA has presented three potential political scenarios in its forecast that could shape policy priorities. These scenarios take into account various levels of political support from the US Congress, as well as possible shifts in the President-elect’s previously announced policy objectives that impact cement consumption.

US: The Portland Cement Association (PCA) has elected Allen Hamblen, president and chief executive officer of CalPortland Company, as chairman of the PCA board of directors, and Tom Beck, president of Continental Cement Company, was elected vice chairman. Hamblen takes over PCA board chairmanship from John Stull, chief executive officer of US Cement for LafargeHolcim US.

Prior to 2006, Hamblen was president and chief executive officer of Glacier Northwest and has worked with CalPortland and its predecessor for 31 years. He is a former chairman of the National Ready Mixed Concrete Association, a trustee of the Ready Mixed Concrete Research and Education Foundation and is a former president of the Washington Aggregates and Concrete Association.

Beck has served as senior vice president at Continental Cement from 2005 to 2013, and as vice president of sales and marketing from 1996 to 2005. He is also a former chairman of the American Concrete Paving Association.

US: The Portland Cement Association (PCA) and the US Department of Labor’s Mine Safety and Health Administration (MSHA) has renewed for three years an on-going alliance aimed at fostering safer and more healthierl working conditions in the cement industry. Started in 2008, the agreement has enabled the PCA and the MSHA to share information, guidance and training resources to help protect the health and safety of all cement industry employees.

“Over the past seven years, this alliance has facilitated a productive collaboration between the cement industry and the regulatory agency, which has resulted in measurable safety and health benefits to cement industry employees,” said PCA President and CEO James G Toscas.

US: The Portland Cement Association (PCA) has confirmed its projection released earlier in 2016 that the US cement industry is on target to see annual cement consumption grow by 4%. Cement consumption through to the end of the year is expected to continue at a steady pace, with additional demand coming from several areas, including moderate residential spending and, to a lesser extent, growth in non-residential and public construction activity. Additionally, the PCA says that favourable monetary policy from the Federal Reserve will support construction activity for the next two years.

“A key factor for continued growth for the cement industry is steady growth in construction spending, also projected to be up 4%,” said PCA Chief Economist and Senior Vice President Edward J Sullivan. “This is very much in line with the overall US economy’s slow-albeit-positive growth path.”

Sullivan noted that PCA has forecasted growth despite some conflicting economic indicators from elsewhere in the economy. “Despite some ups and downs in the US economy, the underlying economic fundamentals are solid.” For example, PCA noted the labour market has consistently seen a net monthly increase of roughly 200,000 jobs, pushing the unemployment rate below 5%. PCA also projects real GDP will grow by 1.5% in 2016, and by 2.2% in 2017.

US: The Cemex Lyons Cement Plant has been recognised by the Portland Cement Association (PCA) with its 2016 Energy and Environment Award for Land Stewardship. Representatives from the Lyons, Colorado unit accepted the award on 31 August 2016 at the PCA’s annual Fall Congress meeting in Chicago.

The Lyons plant’s land-stewardship program for 2015 included limiting invasive plants and weeds and cultivating native plants to attract local wildlife and migrating birds, an effort that was launched at the facility in 2008. The plant also optimised its quarry roads to limit fugitive dust emissions and improve energy efficiency and employee productivity. The plant has previously been recognised by the Wildlife Habitat Council for its diverse environmental programs, including increasing areas dedicated to pollinator plantings and native species to 2.33 acres. On Earth Day, plant employees installed bee boards, bat houses and bird nests.

“Cemex is committed to sustainable practices throughout our operations and to building a better future for our communities through environmental initiatives. We are very proud of our Lyons team and their commitment to land stewardship, and it’s truly an honour to be recognized by the PCA for those efforts,” said Cemex USA president Ignacio Madridejos.

The PCA created the Energy & Environmental awards program in 2000. The PCA awards are given annually to recognise environmental and community relations efforts by cement plants throughout North America. The program is open to any cement manufacturing plant in the region.

Delegates at the IEEE-IAS/PCA Cement Industry Technical Conference in Dallas, Texas this week may have smiles upon their faces if the following data is correct. The US cement industry has rocketed into 2016 with solid sales growth. Multinational cement producer balance sheets are being propped up by the good news and data from the United States Geological Survey (USGS) backs it up.

LafargeHolcim led the pack with an 18.9% bounce in its cement sales volumes to 3.4Mt in the first quarter of 2016. Most of this rise was driven by high demand for building materials in the US supported by a ‘vigorous’ housing market and positive infrastructure spending. HeidelbergCement followed this up with a 13.8% in its cement sales volumes to 2.5Mt in North America. Cemex reported a 8% rise, Buzzi Unicem reported a 16.3% rise, Martin Marietta reported a 13.8% rise and Cementos Argos reported a 47.3% rise.

Graph 1: Portland and blended cement shipments by US Census Bureau region for 2016 to February 2016. Source: USGS

USGS data shows this ‘bounce’ in cement sales shipments at the start of 2016 quite well. Although the publicly released preliminary data only goes as far as February 2016 you can clearly see an up-tick at the start of the year. By comparison shipments in each of the main US census regions fell from January to February 2015 before picking up as the spring started. The main reason for this was the harsh winter in 2015. Overall, cement volumes rose by 11.6% year-on-year for the mainland US in January and February 2016. These were led by Maine, New York and Illinois in the Northeast and Midwest, presumably recovering from the previous winter, before a load of southern states, including Northern Texas and South Carolina, kicked in with growth of above 20%. As an aside it is also worth pointing out the seasonal variation between the Midwest and the West. The Midwest has a more pronounced summer production peak most likely due to the colder winters the region endures.

The reason for that bounce at the start of 2016 is important because it determines whether the US cement party will continue or not. A few of the cement producers in their financial reports mentioned that sales were up due to pent up demand following the harsh winter in 2015. HeidelbergCement gave a much more considered assessment than its rivals. They pointed out that, despite the growth in construction markets, economic growth slowed in the country in the quarter. This fits more in line with the Portland Cement Association’s (PCA) more cautious assessment that the construction industry in the US should be growing but that an uncertain economic outlook is messing with this. It seems that the US cement industry has growth for the moment but that certainty that this will continue is far more elusive. This week’s news that plans have been scrapped to build a third kiln at the Lafarge North America Joppa cement plant just adds to this feeling.

For further information on the US cement industry take a look at the May 2016 issue of Global Cement Magazine.

US: Cement consumption in the US will rise by 3.4% in 2016, according to a report from the Portland Cement Association (PCA). The forecast has been revised down from the PCA’s previous forecast of 5%. The PCA expects cement consumption in 2017 to grow by 4.3%.

“The new forecast reflects the implementation of the new multi-year highway bill, Fixing America’s Surface Transportation (FAST) Act,” said Edward Sullivan, PCA chief economist and group vice-president. “However, our forecast still reflects a deterioration in global growth conditions, an even weaker projection for oil prices, and a tightening of US monetary policy.”

US: The year 2016 marks the centennial anniversary of the Portland Cement Association (PCA), the US' leading advocate for America's cement manufacturers. Widely recognised as an authority on the technology, economics and applications of cement and concrete, the PCA is a vocal advocate for sustainability, economic growth, sound infrastructure investment and overall innovation and excellence in construction.

In celebrating its 100th year, the PCA will be involved with as well as hosting several events throughout the year, including:

- World of Concrete, Las Vegas, Nevada. The official launch of Centennial Celebration;
- PCA Spring Congress, Chicago. Main centennial celebration for PCA membership;
- 2016 DC Fly-In, Washington, D.C., Reception for Members of Congress, Congressional staff, agency officials and allied groups in conjunction with transportation fly-in;
- Open house at PCA Skokie headquarters and CTLGroup to showcase campus to local politicians, government officials, local construction and business leaders, CTLGroup clients and potential clients.