Population Increase Expected to Fuel Cement Consumption Increases

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Tue Jan 22, 2008 2:00pm EST

2030 Cement Consumption to Reach 183 Million Annual Metric Tons
 
LAS VEGAS, Jan. 22 /PRNewswire-USNewswire/ -- By 2030 the U.S. population is
expected to reach 363.5 million persons. Supplying the needed housing,
buildings and roads will lead to a 43 percent growth in U.S. cement
consumption by that year.

According to Edward J. Sullivan, PCA chief economist, annual cement
consumption will hit 183 million metric tons, reflecting a 55 million metric
ton increase compared to the past cyclical peak level in 2005. 

"Sixty-three million more people will be living in the United States in 2030
and they will need homes, schools, hospitals, and roads. This construction
will boost demand for cement to record levels." 

While 50 percent of the rise in cement consumption is due to population
growth, the remaining half will be driven by per capita cement consumption.

One sector that Sullivan predicts will incur large growth is highway
construction.  Today, this segment accounts for 30 percent of total annual
cement consumption.  To meet the demand of the expected additional 49 million
drivers, at least 400,000 additional lane miles of highway must be added by
2030.  Efforts to reduce congestion and "wasted" fuel and its associated
emissions could further increase the number of miles.

Additionally, energy and environmental concerns are predicted to boost cement
intensities, the tons of cement per dollar of construction activity. For
example, houses built with insulating concrete form walls (ICFs) can require
up to 44 percent less energy to heat and 32 percent less energy to cool than
comparable frame homes. As more homeowners and builders seek energy efficient
houses, the insulated concrete wall market share is expected to increase to 30
percent all new homes, compared to its seven percent share today.

"If these 'green' conditions materialize residential concrete construction
will add roughly eight million metric tons to the cement intensities in 2030,"
Sullivan said. 

About PCA

Based in Skokie, Ill., the Portland Cement Association represents cement
companies in the United States and Canada. It conducts market development,
engineering, research, education, and public affairs programs. More
information on PCA programs is available at http://www.cement.org.

Note to editors: To obtain a copy of PCA's Long-Term Forecast, contact Patti
Flesher at newsroom@cement.org. 

SOURCE  Portland Cement Association

Patti Flesher of Portland Cement Association, +1-847-972-9136,
pflesher@cement.org
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