PCA: construction recovery continues to expand

Construction recovery in the US continues to expand and all regions are expected to participate in 2015, according to the PCA State Construction and Cement Forecast report, 2014-15. Favourable demographics, pent-up demand, and improved confidence will help fuel the stronger relative growth, the association notes.

The recently-released state forecast expects the strongest rates of cement growth to occur in the West and South with increases of 7.6 and 7.4 per cent, respectively.

The Midwest will grow by six per cent lead by the Great Lakes while the Northeast is projected to increase 6.3 per cent, according to the the report. However, the PCA cautions that declining energy prices add downside risks in select energy states with the largest negative impact likely in the Northern Plains given their higher production costs and outsized dependence on the energy sector.