The booming Asian economies combined with the destruction of a number of cement production facilities during the tsunami late in 2004 will also put more stress on the global supply chain supporting cement supplies to every part of the world, including Minnesota. The United States depends on imported cement to fill the gap between domestic production and fluctuating demand.  According to the U.S. Geological Survey and Portland Cement Association Economic Research, 2004 U.S. portland cement consumption was 114.6 million metric tons (mmt), up 6.6% from 2003. Of that total, 24.1 mmt or 21.0 percent was imported cement, compared to 23.2 mmt in 2003. Canada was the top exporter shipping just over 5.7 mmt to the U.S. in 2004.

U.S. production of cement continues to grow to meet increasing demand and higher cement intensities in construction projects.  Record levels of ready mix concrete production of 430.5 million cubic yards in 2004 have been followed by strong January 2005 numbers of 26 million cubic yards nationally, 6% higher than in January 2004.

Supply challenges will remain, however, as strong demand has reduced chances for inventory building over the winter months. Operating rates at cement production facilities continue to be running at record levels and imports will carry the burden of fueling market potentials.  Long lead times to complete environmental permits have also delayed the construction of new cement production facilities in the U.S.  With cement production facilities as close as Iowa, additional capacity planned on the Mississippi River in Missouri and a number of large cement producers serving the state, Minnesota should be spared the more severe shortages experienced in other regions of the country.

The goal of the ready mix concrete industry is to serve Minnesota with an adequate and steady supply of concrete.  Local ready mix concrete producers will continue to be the best source of information on concrete supplies and pricing throughout the 2005 construction season.

For more information or to locate a ready mix producer in your area, please call Fred Corrigan, Executive Director, Aggregate & Ready Mix Association of Minnesota at 952.707.1250.  

Founded in 1950 as a state-wide, non-profit organization, the Aggregate and Ready Mix Association of Minnesota is committed to supporting the aggregate and ready mix industries through promotion, education and advocacy in environmental and government issues.