I'M'P'A'C'T' LaborManagement Conference Concrete Reinforcing Steel Institute

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I.M.P.A.C.T.Labor-Management ConferenceConcrete
Reinforcing SteelInstitute

• Robert J. Risser, Jr., P.E.
• January 29, 2008

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IMPACT CRSI Report

• Whats New at CRSI
• PBS Spotlight On Video
• 2008 Forecast
• Long-Term Trends and Outlook

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New at CRSI

• Vision 100 Strategic Plan
• Re-Organized around main areas
• Engineering and Technical
• Market Development
• Region Affairs
• Member Services
• Administration

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Vision 100

• Each functional area identified strategic goals
  and key initiatives, including creating strategic
  plan
• Regions given primary position emphasis on
  grass-roots, bottom-up organization
• Streamlined Board with automatic seats for
  Regions
• New emphasis on contractor membership

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Vision 100 Strategic Plan

• Streamlined Mission Statement
• The mission of the Concrete Reinforcing Steel
  Institute is to maximize the use of steel
  reinforcement in concrete in construction

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Engineering and Technical

• Goals
• Be the Recognized Authority on steel
  reinforcement in concrete
• Identify and support Research to improve the
  competitiveness of steel reinforced concrete
  construction
• Be a Leader in Educating current and future
  practitioners in design and construction of steel
  reinforced concrete
• Develop and Maintain a Technical Support program
  for CRSI members
• Key Initiatives
• Develop and Implement Strategic Technical Plan,
  including Research, with measurable objectives
• Develop and Maintain Educational Programs
• Maintain CRSI Flagship Technical Products
• Represent CRSI on appropriate national and
  international standards, codes, and
  specifications committees
• Align and regularly review Technical Programs to
  Support Market Development priorities

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Personnel

• Schaumburg, IL, Staff
• New V.P. Marketing and Communications Darren
  Szrom
• New Marketing Manager Andrea Howard
• New Desktop Publishing/Webmaster Dave Mounce
• New V.P. Engineering Neal Anderson, P.E., S.E.

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Personnel

• Five new Region Managers since January 2007

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PBS Spotlight On Video

• Aimed at general public audience
• Will Begin Airing on PBS Affiliates in February
• Guaranteed 3 million viewers
• Expanded version on CRSI Website and available
  for staff and member use

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2008 Forecast
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Reinforcing Steel Tied to Cement Usage
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2007 Forecast

• PCA predicting cement down 6.9 in 2007.
• CRSI Estimate for 2007 down 6.5
• Forecast 9.5 Million tons, down from 10.2
  Million in 2006
• Significant decrease in imports

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2008 Forecast

• Residential Construction
• Down 30 in 2007 continuing slide in 2008
  recovery not expected until 2009.
• Non-Residential Construction
• Growth of 11.6 in 2007.
• Slight decline in 2008.
• Public Sector Construction
• Growth of 5.7 in 2007.
• Slower growth of 2.5 in 2008. Further risks in
  2009-2010.
• Slight decline in construction spending expected
  in 2008.
• Cement expected to fall another 2.2 in 2008
  translates to a further decrease to approximately
  9.3 million tons of rebar.

Source PCA Fall 2007 Cement Construction
Forecast
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Long-Term Trends and Outlook
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PCA Cement Forecast (Tons)(Baseline Scenario
60)
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Rebar Forecast (Million Tons)
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Near-Term Wildcards

• Effect of Credit Crunch
• Spill Over into Non-Residential and Public
  Construction Spending
• Recession
• Transportation Spending
• Current SAFETEA-LU Program
• Impact of I-35W Bridge Collapse in Minneapolis on
  Infrastructure Investment

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Long-Term Outlook

• Long-Term Construction Expansion Underway
  (Through 2030)
• Residential
• Commercial/Industrial
• Transportation
• Cement Intensity Expected to Rise
• Cement and Concrete Cost vs. Competing Materials

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Brookings Institution Report

• In 2030, approximately half of buildings in which
  Americans live, work, and shop will have been
  built after 2000
• 300 billion square feet in 2000
• 427 billion square feet needed in 2030
• 131 billion square feet of new space
• 81 billion square feet of replacement

Source A.C. Nelson, Virginia Technical
Institute, 2004
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Brookings Institution Report

• Most of the space will be residential
• More than 100 billion square feet needed by 2030
• Over 60 of commercial and industrial built after
  2000
• Overall, most new growth in South and West
• Strong demand for industrial space in Midwest
• 70 percent of industrial space in Midwest in 2030
  built after 2000

Source A.C. Nelson, Virginia Technical
Institute, 2004
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Future U.S. Cement (Rebar) Demand
Source Freedonia Group
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Future of Transportation Funding

• We are at same point as 1956
• All transportation needs will dramatically expand
  over the next 20 years
• Some examples
• Freight doubles over the next fifteen years
• VMT continues to grow
• Surface transportation networks aging
• The Interstate System turned 50 in 2006

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Future of Transportation Funding

• Funding Impact on Reinforcing Steel
• Avg. 88,000 tons per Billion of Highway Spending
  in SAFETEA-LU
• Current bill 285 Billion
• Senate wanted 320 billion in 2005 3 million
  ton increase
• Bridge Focus Due to I-35 Collapse
• Concrete Paving
• Asphalt at Historic Prices concrete pavement
  first cost competitive
• FHWA and CRSI teaming on CRCP Manuals and
  Workshops

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Future Challenges to Reinforcing Steel

• Labor and material costs will continue to
  pressure development of non-steel reinforcement
  for concrete
• Impact of future grades (100??) and properties

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THANK YOU!