Cement Shortage Impacts Minneapolis Construction

cement shortageAfter several years of a construction boom, Minneapolis construction projects are being slowed by a cement shortage. Besides increased building across commercial and residential construction sectors, the situation has been exacerbated by the spring floods on the Minnesota and Mississippi in 2014, the construction of the St. Croix River Bridge and the Vikings’ stadium in Minneapolis.

The silting caused by the flooding shut down shipping channels via barges for over a month, which only increased the demand for this product. As a consequence, industry leaders have asked Governor Dayton to allow trucks to haul loads weighing as much as 100,000 pounds to help ease the shortage of cement.

Pressure to increase the deliveries by truck will help move the construction of the Vikings’ stadium along, since even this project has seen slowdowns due to slower cement deliveries, even with its priority status. Some experts don’t see any relief until the spring of 2015, when normal deliveries from Iowa and Missouri should resume.

According to Fred Corrigan, executive director of the Aggregate and Ready Mix Association of Minnesota, the problems trace back to the oil boom in North Dakota and the railroads prioritizing fuel shipments.

The multi-family sector could also be contributing to the cement shortage in the Minneapolis construction market. According to the U.S. Department of Commerce, apartment construction reached a 25-year high in the U.S. in 2014, though experts expect it to slow.

Based on multi-family permits, the greater Minneapolis area saw aggressive permitting for attached housing in 2012, 2013 and 2014, although final multi-family data won’t be available until 2016. Gains in the single-family residential construction sector also increased over these years. It’s no surprise that Midwestern home builders saw the second highest level of confidence in the construction recovery in 2014, just behind the western region.

Staying on top of industry trends and news can help you plan and pace your construction project. If you’d like to learn more about the cement shortage and Minneapolis construction, contact the Construction Monitor today. We’ve provided timely information for industry professionals for 25 years.

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