Cement and Ready-Mix Use Increases in October
Data recently released by the United States Geological Service shows 136,019 tons of cement were shipped to the state during the month of October 2021. Cement shipments grew by nearly 10.7% over the same period in 2020 and 8.8% over the previous month.
Digging into the numbers, 22% of cement being shipped into the state is Portland Limestone Cement.
Looking to ready mix volumes, we estimate 503,678 cubic yards of concrete were placed during the month. The total represents the second highest total since April. After 10 months of yardage data in 2021, the state is outpacing 2020 totals by almost 13%.
Reviewing residential construction data, the University of Alabama’s Center for Real Estate estimates 17,960 homes were constructed in 2021. This is a 10% increase for housing starts over 2020. Residential construction remains a key driver of ready-mix
usage and will likely be impacted by Fed rate increases. A softening in home building is a high probability. However, the University of Alabama’s Center for Economic Research still forecast a modest 3.4% growth in Alabama’s GDP in 2022. Reviewing commercial
construction, the AIA billing index for December came in at 52. Anything over 50 is consider a growing market.