ROADS/BRIDGES: New highway bill will have cement consumption on the rise

With the passage of a five-year federal transportation bill, cement manufacturers will see a rise in consumption according to the Portland Cement Association (PCA).

The Fixing America’s Surface Transportation (FAST) Act will provide more than $305 billion to maintain and improve the nation’s roads and bridges. Cement consumptions largest impact will focus on authorizations from the Federal Highway Administration (FHWA).

“FAST represents an average addition of 835 thousand metric tons annually to the cement industry,” said Edward J. Sullivan, chief economist and group vice-president at PCA. “Smaller increases occur in the near term (370 thousand tons for 2016) and larger net increases occur in the out years of the forecast horizon (1.4 million tons for 2020).”

FAST is seen largely as an improvement over the previous MAP-21. While funding levels are modestly higher, it also represents a multi-year commitment that allows states to engage in mutli-year projects.