Nationally, escalation rates for cement and ready-mix concrete have been moderate, except along the South's Gulf Coast, where ready-mixed concrete was up 5.6% year-over-year. That's the analysis from Charlie McCarren, an economist with IHS. In a recent guest Blog post for Spend Matters he notes:
Although nationally, cement and concrete markets appear well supplied, pockets of tightness are developing, particularly in and around the Gulf Coast. Year-to-date, cement shipments in Texas, Oklahoma and Arkansas are up 7.8% y/y. However, clinker production throughout the region has barely responded, rising only 3.6% y/y. Similar trends are emerging in the East South Central, a region that includes Louisiana and Mississippi. Production in these states has actually declined compared to 2013 even though shipments are on the rise.
McCarren expects the trend to continue into next year. Read More