Tevens at STAFDA: Markets Strong Despite Housing Slump

Jason Sandefur

Global construction is booming, thanks to oil prices hovering around $100 per barrel, Tim Tevens, CEO of Columbus McKinnon Corp. told Specialty Tools and Fastener Distributors Association members in Nashville. The oil, gas and petrochemical industries are operating at all-time highs.
“Construction is extremely robust in these areas, Tevens noted.
The constant need for more energy has prompted construction of new power plants around the globe at a very high level.
Tevens sought to dispel the “sky is falling” rumors about construction markets.
“While the television and newspapers are full of doom and gloom about the residential construction industry, the non-residential portion of construction is in the middle of an unprecedented boom, unlike anything seen in many of our life times.”
Tevens said every developed country in the world is rebuilding public works and energy infrastructure, and every developing country is building infrastructure for the first time. Concrete consumption in the U.S. is at an all-time high, and yet represents only 4.5% of the global consumption. China is currently consuming 40% of the worlds concrete.
“And this construction boom is not expected to end any time soon.”
Heavy engineering construction in the U.S. is a $200 billion market and forecasted to grow at 8.8% this year and 11.7% next year. Non-residential construction is a $400 billion market and expected to grow 13.9% in 2007 and 7.2% in 2008.
The public works infrastructure in the U.S. is crumbling and will require massive investments to restore, signaling business opportunities on the horizon.
Likewise, energy infrastructure is being built or rebuilt “on a scale the world has never seen before.” \ �2007 FastenerNews.com