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News Short cuts and shutdowns

Short cuts and shutdowns

Written by Global Cement staff 16 October 2013
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If you try visiting the website of the United States Geological Survey (USGS) this week you are going to be disappointed.

As part of the on-going US federal government shutdown the site has been marked as 'unavailable'. Anyone in search of US cement data and a raft of other national and international statistics will have to wait. Ditto the US Environmental Protection Agency (EPA). Although its website is still live, its last tweet on 1 October 2013 was, 'The federal government is currently shut down.'

Some cement producers in the US may be relieved that the EPA is on a hiatus. However if you cast your mind back to the Portland Cement Associations' (PCA) optimistic growth forecast in September 2013 you may remember the following from PCA chief economist Ed Sullivan. "Assuming Congress has learned its lesson from the fiscal cliff and will take a more rational approach with the upcoming debt limit discussions, political uncertainty and its adverse impact on the economy is expected to dissipate."

Whoops.

The construction industry will be watching carefully to see how planned future infrastructure spending emerges from the debacle. If it gets cut in the horse-trading then US cement consumption growth will take a blow. Meanwhile, if the residential construction market takes a knock due to all the uncertainty and general reduction of money in the economy from federal employees not working then cement consumption gets hit immediately. Hence Sullivan's get-out comments about Congress.

Perhaps what will really concentrate minds on the fragile state of the US construction economy is if a Chinese company buys into the cement industry, as is happening elsewhere around the world. As reported this week, the state-owned Chinese aerospace and defence company AVIC International made an offer to shareholders to take over German cement plant builder KHD Humboldt Wedag.

The US federal government needs to get back to work.

Published in Analysis
Tagged under
  • US
  • GCW122
  • Portland Cement Association
  • United States Geological Survey
  • Environmental Protection Agency
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