Cement: The number of states experiencing cement shortages is down about half to about 15 states. Cement supplies will remain tight as demand keeps rising faster than domestic production or transport capacity (available ships for imports). Cement shortages have driven prices in the Minneapolis area up 14% over February 2005’s level. This follows an 11% price increase during the previous year. For a 20 city average, prices in February are up 4.8% over a year ago. Normally Portland cement prices hold steady during the winter months, waiting for the traditional spring price increase. However, the weather has done little to chill price activity. Portland cement prices rose 1.1% in February.

On April 1st, the Mexican cement antidumping tariff (which the U.S. has imposed since 1990) is supposed to drop from $26 per million metric tons (mmt) to $3 per mmt. There will be a 3 mmt cap annually to southern tier states through 2009. This is only an increase of 0.8 mmt, however, the amount could grow by up to 4.5% during the second and third years if certain conditions are met. Duties and quotas could be eliminated in 3 years. U.S. cement consumption is expected to increase 4%, with an average 3% increase over the next four years. So in the near term, shortages will remain and prices should be expected to continue rising.

Steel: Structural steel prices took a breather in January after a series of strong price hikes during the second half of last year. The average price for wide-flange, channel and I-beams slipped 0.2% in January after climbing 11% between August and December. The pause left prices 13% above January 2005’s level. Prices for reinforcing bars also have started to ease, after rebounding in the second half of last year. While rebar prices are currently 3.2% ahead of a year ago, they remain 39% above January 2004’s level. Globally there is strong demand, low inventories and industry consolidation exerting upward price pressures on steel products, but Chinese production will likely pull prices down. Volatility seems likely. Prices are expected to remain relatively high in 2006 and 2007. With no catalysts for significant price reductions in site, prices in 2007 may decline somewhat from 2006 levels, but will remain historically high.

Lumber/Plywood: Lumber and plywood price escalation is easing. Lumber prices are starting 2006 close to levels of a year ago. The 20-city average price for 2x4s is up just 2.5% above January 2005’s level. This marks a sharp decline from the double-digit price increases posted during 2004. Plywood prices start the year 0.5% below a year ago but remain 33% above January 2003.

Fuel and Freight: The producer price index (PPI) for diesel fuel slipped 0.7% in January but jumped 39% over 12 months. Diesel fuel prices have been nearly stable for almost 3 months. The average price of on-highway diesel fuel in mid-February was $2.48 per gallon, 69 cents less than in October but 49 cents (25%) higher than a year ago. Motor carriers expect strong freight demand to push rates up between 4 to 6% this year, marking the third straight year of increases.

The first PCI Public School was the week of January 30. There was a Level I, II, and III school that started on Monday and ended Saturday morning. In addition, Ed McDougle taught a Certified Field Auditor (CFA) School that also started Monday morning. He finished Wednesday afternoon. Thursday and Friday morning there was a Certified Company Auditor (CCA) school. This year (2006) all erectors must be PCI Qualified to erect product in Groups A and C, produced by a PCI Producer Member. To know what is involved, the easiest way is to attend one of the PCI Certified Field Auditor (CFA) Schools scheduled for this year. By the end of 2006, all erectors must be PCI Certified. To know what is involved in the Independent Certification Audit, the easiest way is to attend one of the PCI Certified Company Auditor (CCA) Schools. All of the Public Schools will be in Nashville, TN this year. Dates for the remaining 2006 Schools are listed below:

CFA: May 15, 16, and 17, 8:00AM – 5:00PM
CCA: May 18, 8:00AM to 5:00PM and May 19, 8:00AM to Noon

CFA: August 14, 15, and 16, 8:00AM – 5:00PM
CCA: August 17, 8:00AM to 5:00PM and August 18, 8:00AM to Noon

CFA: November 13, 14, and 15, 8:00AM – 5:00PM
CCA: November 16, 8:00AM to 5:00PM and November 17, 8:00AM to Noon

Level I School is May 15, 8:00AM – 5:00PM, with the exam May 16, 8:00AM – 9:00AM
Level II School is May 16, 9:00AM – 5:00PM, with the exam May 17, 9:00AM – 11:00AM

Level I School is Aug 14, 8:00AM – 5:00PM, with the exam Aug 15, 8:00AM – 9:00AM
Level II School is Aug 15, 9:00AM – 5:00PM, with the exam Aug 16, 9:00AM – 11:00AM
Level III School is Aug 16, 1:00PM – 5:00PM, Aug 17 and 18, 8:00AM – 5:00PM,
with the Level III exam Saturday Morning Aug 19, 9:00AM – 11:00AM

Level I School is Nov 13, 8:00AM – 5:00PM, with the exam Nov 14, 8:00AM – 9:00AM
Level II School is Nov 14, 9:00AM – 5:00PM, with the exam Nov 15, 9:00AM – 11:00AM

Have you ever wondered how people end up in the precast concrete industry? Most of today's leaders got involved with precast when it was still a new business. They were young men, fresh from college or the military, who were looking for a career path and they daring enough to give a new industry a chance. Thanks to their enterprising spirit the precast industry is now a multi-billion dollar business. In honor of those experts, Fister Quarries has teamed up with Upper Canada Stone to bring you the stories of the people who made this business great. These "Industry Icon" profiles tell the tales of such familiar pioneers as Charles Wilson, Mario Bertolini, Bruce Taylor, Jim Clark, and many others.

Each profile highlights how these experts came to the business, what they've accomplished in their careers, and what their hopes and fears are for the future. For example, did you know that Charles Wilson expanded his father's concrete plant from a seven person operation to one that employed 750 people in 11 plants, and that he was a mentor to some of the industry's leading experts? How about the fact that Mario Bertolini's company built the Volvo Tennis Stadium in New Haven Connecticut, and it's the project he is most proud of? Or that Jim Clark credits PCI certification and knowledge sharing for helping to improve the quality of all the precast products produced today.

Through these profiles, we are collecting and sharing the history of a great industry. In each issue of PCI Journal, look for the latest Industry Icon profile. You can also view profiles online at http://www.precastguide.com. Read about Jim Clark's secret for a successful company, or how Muriel Burns (a.k.a. Muriel Bernstein) defied the odds and became one of the most powerful women in an all-male industry. When you are done reading their stories, nominate an icon of your own. The only rules are that they have to have worked in the industry for 25 years, and have a story to share of their own. Email your nominations to Sarah Fister at sarah@intanic.net. We look forward to hearing from you.

If you're a bridge producer or have an interest in transportation markets, PCI Committee Days is the place to be. PCI's many committees meet from Wednesday, April 26 through Saturday, April 29.

For starters, the Bridge Producers Committee meets on Wednesday (9:00-3:00) to discuss a range of topics on market pressures/activities, plant production issues and agency relations.

A task force on Full-Depth Precast Bridge Deck Panels is finishing a report and will meet on Monday, 3:15-5:15.

The prestigious Bridge Committee meets all day Thursday. Comprised of some 80 of the nation's bridge experts, this group stays on top of current trends and publishes reports on the pressing issues faced by designers.

Note the formation of a Highway Pavement Committee described above, meeting on Friday afternoon.

Once again, the American Association of State Highway and Transportation Officials, (AASHTO), Technical Committee on Concrete Design (T-10) will meet on Friday. They meet from 8:00 until 10:00 in joint session with our Bridge Committee and separately from 10:00 until 3:00 P.M.

All meetings are open and visitors are encouraged to attend and participate. A complete listing of the many committees and times are on the PCI website.