Concrete is the basis of almost everything. It is used to build buildings, highways, bridges, roads and more.
During the Covid-19 pandemic, concrete fell victim to the same phenomena that affected other essential materials and goods: supply chains and labor shortages. And demand for concrete – and its essential ingredient, cement – appears to have only increased after the Senate approved the $ 1 trillion infrastructure package to improve U.S. roads, bridges and tunnels.
“In the short term, we continue to have difficulties in the supply chain, especially in certain markets, so prices are rising,” Anirban Basu, chief economist at the National Association of Builders and Associated Contractors of the industry, told CNBC of construction. “So apparently, right now, supply isn’t increasing to meet demand.”
The industry also faces shortages of skilled labor and truck drivers. And the recent housing boom means more demand for concrete and cement, putting more pressure on the industry to increase capacity.
On top of all this, there is also a drive to reduce the amount of carbon emissions that come from the industry. A study published by the National Academy of Sciences in 2019 estimates that global cement production accounts for 8% of global carbon emissions, making it the largest industrial emitter of carbon dioxide.
Watch the video above for more information on the cement and concrete supply chain and whether the U.S. industry can meet the upcoming demand for the new $ 1 trillion infrastructure spending plan.