Portland cement demand to fall, then rise
Portland cement consumption will see a downturn lasting until at least 2010 as it feels the effects from a depressed housing market impacting consumer spending and commercial construction, reports Ed Sullivan, chief economist at the Portland Cement Association.

A recession is looking like more of a reality into 2009, with recovery not occurring until 2010,” said Sullivan in a presentation at the World of Concrete on Jan. 22. ”We are in the midst of cyclical correction that will take three consecutive years.”

In the long term, cement use is expected to grow by 43 percent to 183-million tons by 2030, or 55-million tons more than 2005. This anticipated growth is fueling investments of $6 billion, (about 25 million tons) of capacity expansions taking place throughout the U.S.

Highway and housing construction are also expected to fuel future demand, brought on by population growth. Sullivan reports the U.S. population should reach 363.5-million people by 2030.

“Sixty three million more people will be living in the United States in 2030. This will boost demand for cement to record levels,” he says.

Highway construction, which accounts for 30 percent of total annual cement consumption, is anticipated to add at least 400,000 roadway miles to service 50 million more drivers by 2030.

Meanwhile, energy and environmental concerns may boost cement intensities, or the tons of cement per dollar of construction activity.

Houses built with insulating-concrete-form walls, for example, require up to 44 percent less energy to heat than comparable frame homes. As more homeowners and builders increasingly seek more energy-efficient houses, insulated concrete walls are expected to account for 30 percent of all future new homes, which accounts for only seven percent today.
“If these green conditions materialize, residential concrete construction will add roughly eight million metric tons to the cement intensities in 2030,” Sullivan said.

back to top

************************************************************

Three trends pushing green building to the forefront of construction industry
According to FMI’s 2008 U.S. Construction Overview, construction industry stakeholders are increasingly recognizing green building capabilities as “good”—and being a necessary part of a firm’s best practices. Green building is no longer a niche sector, and three major trends are pushing green building to the forefront of the construction industry.

FMI’s 2008 U.S. Construction Overview, published annually since 1977, offers a comprehensive report on vital construction trends. It also forecasts the growth or decline in each market segment and geographic region, noting both short-term and long-term considerations.

According to the Overview, green nonresidential construction put in place was $13.4 billion in 2006, and by 2008 $21.2 billion of all new nonresidential construction will employ the use of green building principles. The growth in green construction has created a shift in perception among owners and the architectural and engineering communities. Construction industry stakeholders have embraced the green movement and sustainable design for its energy savings, worker productivity increases and positive public perception, the report states.

In 2008, the three largest segments for nonresidential construction green building—office, education and health care—will account for more than 80 percent of total nonresidential green construction. Other segments, such as lodging and commercial, are also experiencing green construction growth, with a 20 percent gain expected from 2007 to 2008.

Three major trends are pushing green building to the forefront of the construction industry’s consciousness: 1) an unprecedented level of government initiatives; 2) heightened residential demand for green construction; and 3) improvements in sustainable materials.

Government Initiatives
As the largest owner and operator of buildings, the U.S. government has the ability to exert tremendous influence over the construction industry and to put in place policies, rules and regulations designed to drive private sector investment in construction toward a predetermined end. In the first five months of 2007, more than 100 green building bills were introduced at the state level.

Many states have adopted sustainability requirements for all of their new government-funded construction projects. Governments have also implemented economic incentives in the form of tax rebates and credits, density bonuses and other policies such as expedited permitting and approval for green projects.

Residential demand
The heightened level of interest in sustainability within the residential construction sector has contributed to green construction’s movement into the mainstream. While demand for traditional residential construction is slowing down, the green housing and materials markets are expanding. Homeowners are increasing their investment in sustainable housing due to improved economic paybacks resulting from high energy prices and their growing sensitivity to environmental concerns. According to the Overview, the National Association of Home Builders Green Building Conference in April 2007 revealed that green building and remodeling is experiencing a level of demand that exceeds the current supply of qualified firms.

Green materials
Green materials and building products are becoming more popular due to the upward trend in the green construction market. Consumers are becoming more knowledgeable about their health and the environment and are now questioning the volatile organic compounds (VOCs) in their carpet, paint and wood. They are making a conscious effort to identify what building materials are healthier, more energy efficient and economically sensible.

As the demand grows for green products and materials, the cost is mitigated. Today, many manufacturers are making green products, which leads to more competition and better pricing. In addition, distribution outlets for green materials are improving.

“Green building will continue to grow. It is not a question of whether your firm should invest in understanding the green sustainable trend and how to produce sustainable projects, it’s how much should you invest and how fast,” said Rick Dutmer, consulting group manager for FMI. “Developing a strategy now to assess the capabilities of your firm, and create actions to take advantage of the sustainable opportunities is fundamental.”

For more information about FMI’s 2008 U.S. Construction Overview, or to interview Rick Dutmer, please contact Candace Robertson at FMI Corporation at 919-785-9359 or crobertson@fminet.com.

back to top

************************************************************

Mayhew Tools to acquire Ken-Tool¹s OldForge and Carica product lines
Mayhew Steel Products will acquire Ken-Tool¹s OldForge and Carica product lines and Ken-Tool¹s manufacturing facility in New Wilmington, PA, plus trademark rights to the OldForge and Carica brands and all products currently being manufactured and marketed by Ken-Tool under those brands.

The OldForge product line consists of pneumatic accessories and specialty tools and the Carica product line consists of telescoping and unique specialty tools.

Ken-Tool is the world¹s leading manufacturer of hand tools for tire service.

Headquartered in Akron, Ohio, Ken-Tool has been providing the tire industry and automotive aftermarket with quality products for over 85 years.

This acquisition is targeted for February 1, 2008. Customers, vendors and other parties affected by this transaction will be notified directly with transition plans.

back to top

************************************************************

PPE compliance remains a top workplace concern
For the second year in a row, a survey of safety professionals has found that noncompliance with personal protective equipment (PPE) protocols continues to be an issue in the workplace.

Eighty-seven percent of respondents said they had observed workers failing to wear PPE when they should have been, according to a survey of attendees at the 2007 National Safety Council (NSC) Congress, conducted by Kimberly-Clark Professional. Eighty-five percent of safety professionals answered yes to the same question in a survey at the 2006 NSC Congress.

“Despite the undisputed need for PPE when undertaking hazardous tasks, people continue to risk bodily harm by failing to protect themselves,” said Randy Kates, general manager of the safety business for Kimberly-Clark Professional. “In this survey, we not only asked why people did not comply with PPE protocols, but what could be done to alter these behaviors.”

The main why was uncomfortable PPE, according to 62 percent of respondents who had observed noncompliance in the workplace. This was followed by workers thinking PPE was not necessary for the task, PPE was too hot, fits poorly, or was unattractive looking.

When respondents were asked what could be improved about the PPE they were currently purchasing, three quarters of survey respondents said they would make it more comfortable. Safety professionals also gave the nod to more fashionable PPE. Eighty-four percent said that they would be more apt to purchase fashionable and attractive PPE if workers would be more likely to wear it and the price was comparable to what they were currently paying for similar products.

Off-the-job safety programs
At a time when workplace deaths are on the decline but injuries and deaths in the home have risen, 59 percent of safety professionals said they had programs in place to promote at-home safety and another 28 percent said they had plans to create this type of program in the future.

Of those with existing safety programs, 68 percent said the offerings consisted of training programs or providing training materials on off-the-job or at-home safety; 44 percent encourage employees to take home company-provided PPE and 16 percent said they have incentive programs for staying safe off the job as well as on. Ten percent said they allow employees to borrow high-priced safety equipment, such as gas detection equipment, for home use.

Green issues take center stage
The survey also explored the effect of environmental considerations on purchasing PPE and other personal safety products. Here, the verdict was nearly unanimous. Ninety-four percent of respondents said environmental considerations and reducing the impact on the environment were important to them. Sixty-four percent ranked these as very important, while 20 percent described them as somewhat important. Ten percent said environmental factors were increasingly important now, as compared with a few years ago.

When it comes to green purchases, the top consideration was buying products made with recycled materials. Next was the ability to reuse or recycle products after use. Source-reduced products and packaging and a manufacturer’s overall commitment to the environment were nearly tied for third place. These were followed by:
   • Purchasing from one supplier to reduce energy costs resulting from the transport of supplies from different sources.
   • Products that are shipped in biodegradable packages with as little packaging material as possible.
   • Products manufactured in a “carbon neutral” facility.

back to top

************************************************************