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Analysts are calling
2004 a "transition year" for the U.S. economy. Concrete
construction and equipment manufacturing are expected to rebound
after several stagnant years. By mid-year, cement gurus are
forecasting a moderate rise in interest rates, which would
begin to cool down the record-high home-building boom and
spur more nonresidential starts.
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| COMBAT
READY People took notice of mobile camouflaged
volumetric mixer at World of Concrete, which drew 55,000
visitors.(Illustration by Guy Lawrence for ENR) |
"Softer second-half residential
construction activity is expected to be offset by marginally
higher nonresidential and public-spending activity,"
said Edward J. Sullivan, the Portland Cement Associations
chief economist, who addressed the press at the World of Concrete,
held Feb. 17-20 in Orlando.
The show is an annual tradition
for concrete contractors and producers, attracting 56,000
this year, down 23% from 73,100 last year. Show director Tom
Cindric said he is hopeful that next years event will
bring 75,000 people into Las Vegas, where the show will be
permanently located.
Sullivan, based in Skokie, Ill.,
forecasted a 1% growth in cement production this year but
said double-digit gains in 2005 through 2007 is feasible.
Much of this hinges on the federal highway program, which
PCA believes Congress will reauthorize this year at an estimated
$311 billion. Total public spending is expected to post small
gains as state budget problems continue, Sullivan added.
There was no shortage of vendors
whose attitudes reflected the mildly positive outlook. "Im
optimistic that we are going to see as much as a 5% increase
in the next year," said Randall J. Korach, president
of Tremco Inc., Beachwood, Ohio. Roger Hall, marketing director
of LaFarge North America, Herndon, Va., agreed. "I dont
see why we cant have 5% growth this year," he said.
Heavy equipment suppliers signaled
increased manufacturing activity, unveiling plenty of eye-catching
machines on the show floor. Visitors had the opportunity to
sit in the cab of a camouflaged mixing truck on its way to
a U.S. Army delivery. Cemen Tech, Indianola, Iowa, brought
the mixer, which sat atop an Oshkosh PLS 10x10, heavy-duty
chassis. The mixer body has a "rollback" mount,
which allows users to detach it from the truck and mix concrete
on site.
"We sell five to 15 units
in an average year," said Josh Walters, Cemen Techs
national sales manager. The firm is partnering with Oshkosh
Truck Corp. in a four-year contract to supply the army with
38 units this year, a total sales potential of $10 million
for Cemen Tech.
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DECADENT?
Lavish Big Blue pickup attracted
serious inquiries. |
International Truck and Engine
Corp., Warrenville, Ill., used the show to display its new
line of diesel engines that meet January 2004 U.S. highway
emissions standards. But attendees in the booth were far more
interested in "Big Blue," a medium-duty, 7000-Series
truck chassis fitted with an 8-ft pickup body and crew cab
that comfortably seats six.
The truck is a production version
of a promo model built last year called "Big Red."
It attracted contractors and military visitors alike, who
called the $80,000 behemoth "a pickup on steroids."
Some said they plan to use it for off-road hunting trips;
others wanted one to complement their Hummers.
Booth staffers said they had thousands
of inquiries during the show, sold 10 units the first day
and expected to sell 40 more before the event was finished.
(Photos
by Tudor Hampton for ENR)
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