2014 is at its close, and with the approach of 2015, it’s a great time to examine the current state of the precast concrete market. The economy is getting better, but it’s nowhere near as great as it could be. What effect is this having on the concrete industry? Let’s take a look together.
Del Zotto Products specializes in creating steel forms for precast concrete. We’re passionate about the world of concrete, and as a result, we’re happy to show you the current state of the precast concrete market.
General Overview of the Precast Concrete Market
The U.S. is currently at 2% GDP growth, which means it’s possible, at best, to maintain the current level of employment in the precast concrete business. According to Pete DeLay, President and CEO of Sherman-Dixie Concrete, “To get unemployment down to eight percent, you need periods of time of GDP growth in excess of three to four percent.” In other words, because of the economy, the precast concrete market is barely hanging on.
At the same time, sales are up for concrete burial vaults, concrete septic tanks and basement entry systems. However, in order to improve growth, the nation must work on its infrastructure. For a more in-depth look at the market, we also should examine an industry breakdown.
Precast Concrete across Different Industries
Steve Rodgers of Contractors Precast has provided some insight into the growth of some industry segments. According to his findings, housing construction and transportation and roadway construction are going up. Considering the expansion of world population, this development makes sense.
What doesn’t make sense, however, is the fact that commercial construction is going down. Although the demand for these projects is increasing, there is simply not enough money to invest in them. Of course, there is good news regarding the future of the precast concrete market.
The Future of Precast Concrete
In a previous article, we covered the effects of population growth on precast concrete demand. To summarize, as the world population increases, so too will worldwide demand for concrete. Throughout history, precast concrete products have been an effective way to speed up construction and minimize disruptions to the lives of the general public.
In the future, it’s obvious that precast concrete will continue to be in demand. The industry will, most likely, turn around with the economy.
Precast concrete is an amazing innovation that has shaped the world so far and will definitely continue to do so in the future. Although the economy is shaky at the moment, the success of precast concrete is expected to overcome adversity.
If you utilize precast concrete in your construction projects, Del Zotto Products wants to speed up the process for you. Our forms help you install projects faster without sacrificing quality. For more information about who we are, what we do and how we can help you, send us a message on our contact form or through our social channels.