Steel Markets
Will Construction be the Comeback Kid - The View From Platt's Steel Market North America Conference
Written by John Packard
March 23, 2014
SMU’s John Temples attended the Platts Steel Market’s North America Conference this week. Panelist focused on market forecast, natural gas, service center operations, and a healthy dose of business promotion. One discussion of interest was on the recovery and outlook of the construction sector.
Throughout the conference, many people were optimistic about the non-residential construction sector. According to one analyst speaking at the Platts steel North America Conference, it seems that end markets are poised to improve. The nonresidential construction market could experience a 6-8 percent growth rate.
The last voice of the conference challenged these projections. While many touted the comeback of non-residential construction as a potential leader in market recovery, John Cross, vice president of market development and finance at the American Institute of Steel Construction, disagreed. When posed with the question of “will construction be the comeback kid,” Cross answered with a confident and informed “No”.
While others were optimistic with non-residential construction growth of 6-8 percent, Cross reminded us that construction is still 48 percent below the 2006/2007 peak. While we can historically rely on the non-residential construction sector to lead the way in recovery, Cross felt we are currently coming from too low of a base.
What key factors must be strengthened to improve growth? According to Cross, employment levels must increase, and a GDP of greater than 3 percent must be sustained. Which construction sectors are likely to lead the way in the initial growth? Industrial and multi-story residential construction. Considering all of this, Cross feels that we will see an 11 percent increase over 2013 levels and perhaps a cycle peak by 2017/2018.
John Packard
Read more from John PackardLatest in Steel Markets
HVAC equipment shipments slow in December but strong annually
Shipments of heating and cooling equipment in the US fell to an 11-month low in December, according to the latest data released by the Air-Conditioning, Heating, and Refrigeration Institute (AHRI).
Apparent steel supply rebounds in December, but 2024 total at 4-year low
Apparent US steel supply rebounded in December, but 2024 was still the lowest level for supply since 2020.
Trump officially orders sweeping 25% tariff on steel, aluminum
The new version of Section 232 goes into effect on 12:01 am ET on March 12, according to the executive order. The latest iteration of Section 232 removed quotas, exemptions, and other carve outs that had accumulated over years.
Tampa Steel Conference: Two weeks to go!
With just two weeks to go, we have over 400 registered so far for the 36th annual Tampa Steel Conference. Join us and hundreds of industry executives at the JW Marriott Tampa Water Street from Sunday, February 2, through Tuesday, February 4.
Galvanized buyers see glimmers of optimism amidst the chaos
Reflecting on 2024 and looking ahead to the new year, galvanized steel buyers on this month’s HARDI call expressed a mix of cautious optimism with lingering uncertainties.