Concrete production will stay strong in Michigan

News Michigan Concrete Association February 09, 2004
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A survey of member ready-mix concrete companies conducted in December by the Michigan Concrete Association (MCA) revealed that

A survey of member ready-mix concrete companies conducted in December by the Michigan Concrete Association (MCA) revealed that a vast majority of those surveyed expect 2004 construction activity in Michigan to either increase or remain unchanged from last year, depending upon the particular category. Although more than half the participants expect no significant change in residential construction activity in 2004, which has remained strong the past several years, a majority of members do expect increases for both commercial and industrial construction in the year ahead.


MCA surveyed member companies who mix and deliver a majority of the concrete used in various types of construction projects throughout Michigan. In addition to questions about the general outlook for construction activity in the state, the survey also included questions about changes in revenues for 2003 and expected revenue changes for 2004, hiring activity in 2003 and hiring plans for 2004, as well as a ranking of the challenges confronting the industry in the year ahead.


"There is a general consensus among the participants that revenues for 2004 will grow in each construction category, with commercial and industrial construction showing the strongest growth," said Bernie Cawley, director of marketing and administration for the MCA. "Only slightly more than 18% of the respondents expect a decline in each of the categories, while an average of 76% expect revenues to either increase or stay the same.


"Despite their optimism regarding future revenues, a majority (65%) of those surveyed still plan to maintain current staffing levels, with 23% expecting to add staff and only 16% intending to reduce their workforce in 2004. The overriding concern today among our members surveyed is steep price discounting by competitors, followed by a slowdown in overall Michigan construction activity and potential increases in fuel and raw material costs."


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