The lingering supply chain crisis caused by COVID-19 is having a domino effect across the construction marketplace. As a result, concrete producers are having to adapt to a new landscape, bringing in new ideas, partners, and challenging the status quo to maintain their success. As demand for new projects continues to rise, backlogs grow, prices rise, and clients can grow frustrated waiting out delays–causing tensions to arise in the marketplace. Fortunately, concrete producers have access to innovative tactics to solve the cement shortages.

Concrete producers expected demand to drop in response to the pandemic, but instead, the market boomed across the US. It’s projected that construction spending on buildings is expected to increase just over nine percent this year (2022) and another six percent in 2023, according to a new report from the American Institute of Architects (AIA). 

In 2021 alone, the US consumed more than 100 million metric tons of cement, and even with importing cement from overseas producers, the US demand is outpacing supply. Producers know all too well that cement prices are rising, and there is rationing in many regions across the Southeastern US. At the same time, SCMs are becoming a more challenging alternative with the accessibility to fly ash dwindling, as global coal power projects continue to drop. Even though slag remains available, logistical delays following the COVID-19 pandemic can make it difficult for concrete producers to manage their forecasts and planning. Opportunity for growth keeps expanding for producers as concrete orders continue to rise due to new projects beginning with the bipartisan Infrastructure Investment and Jobs Act. Our industry is poised to capitalize on fantastic growth opportunities, and to use all the tools we have at hand to maintain healthy budgets and bottom lines.

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