PCA's Summer Forecast Reveals Deeper Residential Slide

Due to the national downturn in residential construction, the Skokie, Ill.-based Portland Cement Association expects cement consumption to slow markedly during the second half of 2006, and remain subdued through 2007.

PCA Chief Economist Ed Sullivan predicted that the emerging weakness in residential construction will dissipate the growth recorded earlier in the year in many regional markets.

"In July, 24 states showed significant declines in housing permit activity, including traditionally strong markets such as Nevada, Florida and Arizona," Sullivan said. "I do not believe these declines will be temporary."

According to PCA's summer forecast, Sullivan expected housing starts to decline by 10.6 percent in '06, followed by a similar decline in 2007. He cited high new home inventories, raising interest and inflation rates and slower net job creation as contributing factors to an even greater residential slow-down.

The decline in residential building was not unexpected. However, the nonresidential and public construction sectors are not experiencing the growth rate predicted earlier this year.

"Underlying drivers for the nonresidential sector are improving, but at a slower rate," Sullivan said.

As of July, year-to-date U.S. cement use was up 5.6 percent over 2005 levels. PCA's summer projections indicated that second half weakness in residential construction would drive down the 2006 growth rate to 2.3 percent and to 1.2 percent in 2007.

Sunbelt Rentals Completes Acquisition of NationsRent

Charlotte-based equipment rental company Sunbelt Rentals announced in early September the completion of the acquisition by merger of NationsRent Cos., Fort Lauderdale.

The acquisition, valued at over $1 billion, forms the third largest equipment rental provider in the United States, Sunbelt Rentals stated. The combined company features more than 470 locations and over $2 billion in rental fleet.

Industry Donates Efforts to Construction of Lisa Merlin House

Contractors, homebuilders and materials suppliers recently contributed to the construction of The Lisa Merlin House for Women and Children in Orlando. Lisa Merlin House is a non-profit organization for women recovering from alcoholism and substance abuse.

A variety of firms contributed to the venture. Carmen Dominquez Homes initiated the effort, while WELBRO Building Corp. of Maitland provided management support. Baker Concrete Construction donated the formwork and flatwork placement, C&C Pumping provided concrete pumping services, Cemex provided the concrete at a reduced cost and Shepler's provided steel stakes.

STV Group Acquires Ralph Whitehead Associates

STV Group, an engineering, architecture and planning firm based in Douglassville, Pa., announced the acquisition of Ralph Whitehead Associates, a 155-person consulting civil and transportation engineering firm based in Charlotte.

Ed Jenkins, president of RWA, noted: "STV and RWA chose to enhance their long-term strategic plans by joining forces through an acquisition. The culture and core values of the firms match very well."

Headquartered in Charlotte since 1961, RWA has branch offices in Raleigh, N.C.; Rock Hill and Charleston, S.C.; Atlanta; Richmond, Va.; Jacksonville, Fla.; and Kansas City, Kan.