The Romans invented cement-based concrete more than 200 years ago, and used the materials to build masterpieces like the Pantheon.
A typical mix of concrete consists of 60-75% sand/gravel/crushed stone, 15-20% water, and 10-15% cement...which is prepared by roasting limestone and clay. Cement is the paste that binds the components into concrete.
The labor market, and the pursuit of environmentally friendly materials, are causing engineers to improve upon this already essential construction material (500 million tons of concrete were laid in the U.S. last year alone.)
The concrete industry is witnessing a shortage of laborers who can mix, pour, and work with concrete. Additionally, the average age of concrete workers is increasing as fewer younger people enter the field (For more on this trend, see Monday's post, "Blue Collars, Green Pastures). In response, the Paris-based manufacturer, LaFarge, has developed "Agila." With regular concrete, 8 people would take 8 hours to lay one floor for an office building. With Agila, the job takes 2 persons, 2 hours.
Cement consumption increased 7% in the 1st quarter of '05, over a very strong '04. Cement shortages are now in 23 states. U.S. cement plants are operating at full capacity, and an additional 25% of total consumption will come from imports. Shortages are particularly acute in the Southeast and Mid-Atlantic states.
The cement industry contributes to 7% of the global human production of carbon dioxide, as a result of cement production.
Here's a thought for financial advisors. Contact someone in the concrete or cement industry, and use the above facts as conversation-starters or small-talk to get things going. Some industry associations are listed below.
Industry Associations for the cement and concrete industries:
- Operative Plasterers and Cement Masons International Association, www.opcmia.org
- American Concrete Pavement Association, www.pavement.com
- American Society of Concrete Contractors, www.ascconline.org
- Portland Cement Association, www.cement.org
- American Concrete Institute, www.aci-int.org
- National Concrete Masonry Association, www.ncma.org
- National Ready Mixed Concrete Association, www.nrmca.org
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