PCA Pres: “Pendulum is swinging back” for construction industry (WOC 2013)

You don’t usually get a pair of sunglasses at a press conference. And, given the recent tough years for the construction industry, receiving a pair at Portland Cement Association’s World of Concrete press event as a way of saying “a bright future is ahead,” was a bit of a suprise.

Chief Economist and new PCA president Ed Sullivan has given a yearly prognostication at the World of Concrete that has been a witch’s brew of tempered gloominess in past years.

But no longer.

“About seven or eight years ago, we were among the first to call for a crash in housing,” says Sullivan, “which was based on our understanding of the underpinnings of the economy. I strayed from the herd then, and today I going stray from the herd again.”

“We believe the the industry has ignored the positive signs.”

Yes, times have been bad, with 8.5 million jobs lost, construction activity decreasing 38 percent, and cement construction declining 45 percent. “Recessions correct past excesses,” says Sullivan, “and the larger the imbalance, the longer it takes to cure. It’s been a long path.”

This is about to change, Sullivan contends.