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In this issue

Chicago Hosts Joint Spring Meeting
Nearly 200 member company personnel and PCA staff gathered at Chicago's Marriott O'Hare this week for the 2003 Joint Spring Meeting of PCA councils, committees, and task groups. Among meeting highlights:

  • A three-hour workshop on upcoming sustainability road shows by the Environmental Council of Concrete Organizations kicked off the meeting on Sunday, March 16.
  • Vince DeSimone, DeSimone Consulting Engineers, presented his take on the state of concrete construction in the high-rise arena at a lunch on Tuesday, March 18.
  • At a dinner ceremony that evening, PCA presented the 2003 Promotion Progress Awards.
  • And on Wednesday morning, PCA chief economist Ed Sullivan presented his preliminary spring forecast of construction and cement use.

Following the meeting on March 18-19, PCA's strategic planning committee embarked on its third round of meetings to craft a new three-year plan for the association. Complete committee reports are available as PowerPoint files by clicking on the following links.
Administrative Council
Government Affairs Council
Research and Technical Council
Market Promotion Council


Downturn Dings Cement Outlook
Construction spending may slip this year, but the drop will be short and leave cement use at historically high levels, says PCA chief economist Ed Sullivan in his preliminary forecast for cement and construction presented this week at the Joint Spring Meeting.

"Even though the outlook suggests a third consecutive year of decline, keep in mind that 2003 will still stand as the fourth best year in history," he said.

While signs of economic recovery are gaining strength, the real question is how fast it will unfold, according to a Flash Report issued yesterday summarizing the forecast. PCA believes that recovery will develop slowly. The forecast calls for mild declines in construction this year followed by gains in 2004. For cement, the outlook translates into consumption of 102 million metric tons this year, down from 104 million tons in 2002.
View or download the Flash Report
Contact Ed Sullivan or Dave Czechowski.


Dolberg Heads Holcim (US) Inc.
The Board of Directors of Holcim (US) Inc. elected Patrick Dolberg as President and CEO of the company effective March 17, 2003. Mr. Dolberg replaces Paul Yhouse, who also served as Chairman of the PCA Board of Directors. Yhouse also resigned as Chairman. (See item below.)

Yhouse joined Holcim (US) 12 years ago as CFO and spent the last ten years as CEO. Dolberg joined the Holcim Group in 1991 and since 1998 has served as president/CEO of St. Lawrence Cement, a Holcim Group company headquartered in Canada.

"We all owe Paul a huge debt of gratitude for his service to the Association over the last ten years," said PCA president John P. Gleason, Jr. "His leadership during our current round of strategic planning has been invaluable."

Harrington Serves as Interim PCA Chairman
With the resignation of Paul Yhouse (above), the chairman's responsibilities fall to Dan Harrington (Lehigh), the current vice chairman of PCA. Harrington will act as interim chairman until he is formally elected at the Spring Meetiing, April 29, 2003, in Boston.
Contact Jay Gleason.

Top Promoters Honored in Awards Program
At a dinner ceremony at the Joint Spring Meeting this week, PCA recognized cement company personnel for outstanding achievements in promoting cement and concrete. The 2003 Promotion Progress Awards honored nine individuals from a field of 28 nominees for their work and dedication in expanding the use of cement in construction markets:

  • John (Tim) Conway (Holcim) for his work in product standards and technology.
  • Otto Nero (CEMEX) for his production of more than 100 videos enhancing promotion efforts and consumer awareness across all markets.
  • John Seil (Hanson) for his efforts to promote insulating concrete forms and other residential products.
  • Michael Hammer (Hercules) for introducing a number of innovative concrete paving solutions to the Northeast.
  • Joel Kendig (CEMEX) for promotion of concrete building systems in the Dayton, Ohio, area.
  • Robert Munro (Lafarge) for advancing concrete's role in sustainable development and green building in Canada.
  • Tim Cost (Holcim) for his successful promotion of soil-cement and concrete paving in Mississippi.
  • Ray Seipp (Signal Mountain) for his work in promoting a number of cement and concrete paving products in the Southeast.
  • Peter Deem (Holcim) for promotion of concrete pipe.

Entries are judged by a panel of marketing executives from PCA member companies. Winners receive a plaque and figurine commemorating the award.
Contact Lionel Lemay.

Count on Concrete Show Home Goes on Tour
The Count on Concrete Show Home, showcased at the 2003 International Builders Show in Las Vegas in January, was featured in a national media tour designed to reach consumers during evening television newscasts and morning drive-time radio. The tour also featured GE Appliances, Dupont, Drill Doctor, and Trek decking and railing. Nationally syndicated home improvement radio hosts Tom Kraesutler and Mary Barretta of The Money Pit Home Improvement Radio Show/TVN Communications hosted the tour.

Utilizing a video news release (VNR), audio news release (ANR), radio media tour (RMT) and The Money Pit Radio Show, the Count on Concrete Show Home reached an audience of more than 107 million. The video news release, which will be redistributed at a later date, reached 326 stations in 185 markets in 44 states totaling just over 12 million viewers. The audio news release reached a total of 5.8 million listeners dispersed over all 50 states in 186 markets. The radio media tour captured 88.2 million listeners, again in all 50 states and in 210 markets. The Money Pit Radio Show generated an audience of 1.2 million.
View or download the report on use and viewers.
Contact Jim Niehoff or Ryan Puckett


PCA Issues Promotion Report Card
The latest Promotion Effectiveness Report released at this week's committee meetings evaluates how the cement industry is performing as a whole and in specific targeted construction markets. Issued twice yearly in conjunction with PCA's spring and fall meetings, the report uses a variety of factors and information sources to rate market share and other measures of success such as changes in buyer attitudes and perceptions.
Contact Mark Justman.

Report Assesses the Economic Impact of War
PCA economic research issued a flash report today outlining the impact of war on the US economy and construction markets. The report identifies two scenarios: 1) a quick and clean war with few downstream issues; and 2) a lengthy campaign with significant casualties and multiple downstream issues.

A quick and clean war would accelerate an economic recovery for the US, but would not necessarily translate into an immediate increase in construction activity. In a domino reaction to a swift and smooth campaign against the Iraqi regime, consumer sentiment would improve, raising consumer spending, translating to increased manufacturing, therefore increasing investment spending and ultimately improving construction activity as a whole.

On the other hand, Sullivan suggests a lengthy campaign with unacceptable casualties will produce a recession. With few federal policy tools left, a simple impetus for recovery would be difficult and the economy would likely take at least one year to return to the crossroads of recovery the country is at today.
Download the Flash Report.
Contact Ed Sullivan of Dave Czechowski.

William D. Toal, 1943-2003
William “Bill” D. Toal, former chief economist for PCA, died on March 16. He was 60. Toal joined PCA in 1987 as economist and was promoted to chief economist in 1989, continuing in that role until June 2002. Throughout his career, Toal served in various economic positions including senior business economist for the Federal Reserve Bank of Atlanta, manager of forecasting and corporate economist for The Allen Bradley Company, state economist for the State of Minnesota, and manager of forecasting for Sears, Roebuck, and Co. Toal attended the University of Notre Dame from 1961-1970 where he earned his B.A., M.A., and Ph.D. in economics. Toal was a member of the National Association of Business Economists.

House Subcommittee Approves Energy Legislation
By a vote of 21-9, the Subcommittee on Energy and Air Quality of the Committee on Energy and Commerce on Wednesday passed, , an energy bill that includes provisions to promote energy conservation, increase domestic energy production, and restructure the electricity market. One provision that could affect the cement industry is Sec. 1010, “Increased Use of Recovered Mineral Component in Federally Funded Projects Involving Procurement of Cement or Concrete.” The language passed by the subcommittee is the same as that agreed to during the energy conference last year. The full committee is expected to consider amendments and vote on the bill beginning April 1.

Several other committees (such as Ways and Means, Resources) are also considering energy bills, which will be combined with the Energy and Commerce piece to form a comprehensive energy bill to be taken up by the full House. The House is expected to consider the energy bill prior to the spring recess beginning April 11.

Contact Mark Washko.

Transportation Funding Clarified as
House Approves Budget

Early today, the House approved its $776 billion FY 2004 budget plan that includes language establishing a reserve fund to allow for additional transportation funding if subsequent legislation is enacted. The House Ways and Means Committee would need to approve any such legislation that would provide additional revenue into the Highway Trust Fund. Meanwhile, an amendment to the Senate budget resolution to increase transportation funding is expected to be offered today by Senators Christopher Bond (R-MO) and Harry Reid (D-NV). The amendment would increase FY 2004 highway and bridge spending from $30.5 billion to $39.3 billion.

Contact David Hubbard.

Senate Committee to Take Up Energy Legislation in April
Senator Pete Domenici (R-NM), Chairman of the Committee on Energy and Natural Resources, announced Wednesday that he intends for the committee to take action on a comprehensive energy bill next month. The unreleased bill is expected to contain provisions relating to domestic energy production, renewable energy, and conservation. In related news, the Senate Committee on Finance is expected to consider legislation on energy tax incentives next week.
Contact Mark Washko.
View Domenici’s statement.


Industry Allies Meet With Corps Researchers
PCA and representatives from the National Precast Concrete Association, Expanded Slate, Clay, and Shale Institute, Insulating Concrete Forms Association, and the Tilt up Concrete Association met with key researchers at the US Army Corps of Engineers Engineering Research and Development Center Geotechnical and Structures Laboratory in Vicksburg, Miss. The purpose of the meeting was to provide the Corps with information on off-the-shelf concrete wall systems and the potential for collaborative research on how these wall systems would react to explosive blasts. All parties agreed on the potential benefits of joint research and that further discussions were warranted.
Contact John Sullivan.

Senate to Vote on Reinstating Superfund Taxes Today
The Senate continued its consideration of the FY 2004 Budget Resolution today with a vote on final passage expected by the end of the day. An amendment to reinstate Superfund taxes – including a corporate environmental income tax -- is expected to be offered by Senators Boxer (D-CA), Lieberman (D-CT), and Corzine (D-NJ).
Contact Mark Washko.

California Lists Sulfuric Acid as Carcinogen
The California Office of Environmental Health Hazard Assessment this week added sulfuric acid mist to a list of human carcinogens. The list of carcinogens is mandated by a state law entitled the Safe Drinking Water Toxic Enforcement Act but commonly known as Proposition 65 for its number on the ballot when it was a voter initiative in 1986. The state agency cites links between exposure with strong inorganic acid mists containing sulfuric acid and lung cancer. Because of the scrubbing tendencies of calcium and the thermal conditions present when sulfur is combusted in a kiln, production of sulfuric acid at cement plants is minimal.
Contact Tom Carter.

Brownfields Bill Introduced in Senate and House
Senator Carl Levin (D-MI) introduced S. 645, the Brownfields Redevelopment Assistance Act of 2003, Tuesday. The bill authorizes $60 million/year for five years for brownfields redevelopment. In addition, it expands the authority of the Economic Development Administration to allow it to participate in brownfields redevelopment activities. The bill is cosponsored by Senators Jeffords (I-VT), Collins (R-ME), Reed (D-NV), Kennedy (D-MA), Leahy (D-VT), Clinton (D-NY), Schumer (D-NY), Sarbanes (D-MD), Baucus (D-MT), Lieberman (D-CT), and Kerry (D-MA). A companion bill, H.R. 1334, was introduced in the House by Rep. Jack Quinn (R-NY).
Contact Mark Washko.

 

Cement and Concrete Overview
April 7-8, 2003
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©2003 Portland Cement Association
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03.21.03

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