According to data recently released by the United States Geological Service, cement shipments to the state grew for the third consecutive month in April. The 124,846 tons mark the second highest cement shipment in the last five years. The total narrowly missed the record 125,231 tons shipped in October 2018. As noted in past reports, Alabama has been fortunate to have multiple large industrial projects under construction in the state and is seeing increased cement demand. The April 2019 total exceeded April 2018’s total by nearly 15%.
Looking beyond industrial projects, the national AIA billings index for the month of April 2019 was a 50.5. Anything above a 50 is considered a growing market. The NAHB Housing Market Index nationally was 63 and a 67 in the South. Like the AIA report, anything above 50 is considered a growing market. While things look good on the surface through the first four months of 2019, you have to balance this with the Bank of America recent forecast that there is a 30% chance of a recession in the next 12 months.
Utilizing the NRMCA conversation factor for yards placed in the state, we estimate 462,305 cubic yards were placed in April.
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