C&D News

Construction Rebound not Immediate

When Ed Sullivan, chief economist of the Portland Cement Association (PCA), addressed the C&D World event in Miami in 2006, he predicted that sub-prime mortgages would soon haunt the U.S. economy.

At the 2009 C&D World event, held in Tampa, Fla., March 22-24, Sullivan touched on the full effects of what has happened to the economy since then and also shared his thoughts on how the federal government response may or may not help matters.

"Unlike most recessions, this is not regional-specific," said Sullivan of the current climate. "It is everywhere, and it is unique."

Sullivan said he saw more payroll paring to come. "We could lose at least another 6 million jobs," he said. "What’s going to stop this? We are at the mercy of the fundamentals. The private sector has abandoned all strength."

Sullivan said the $758 billion American Recovery and Reinvestment Act (ARRA), "will shorten the recession and make it less severe."

But the PCA chief economist added that it was not a quick fix and said any gains for the construction and paving industries would not be substantial until the second half of 2010, when larger projects such as bridge replacements and new highway lane miles would actually be in full swing. In 2009 some jobs would be saved by ARRA, but he said he did not foresee job creation until 2010.

C&D World 2009 was held March 22-24 at the Tampa Convention Center in Tampa, Fla.