October constructsteel newsletter

Chicago’s Transit Authority is in line to receive USD1.97 Bn from the federal government to aid its USD3.6 Bn Red Line Extension project.
If finalised via the federal New Starts program, the funds would constitute the largest grant in CTA’s history. In addition to the extension, the project also contains a new rail yard and related rail facilities and four new accessible.

Total construction starts rose 6% in August to a seasonally adjusted annual rate of USD1.3 Tn, according to Dodge Construction Network, driven by pickups in the manufacturing and transportation building sectors. The two sectors’ gains help lift starts in the broader nonresidential construction category by 40% and kept the overall index in positive territory.

Construction’s biggest companies are booking more jobs as federal money accelerates infrastructure work, while firms under USD100 Mn in annual revenues are having a harder time extending their backlog. A 24.4% upswing in infrastructure backlog in August kept the overall backlog level 5.7% higher than in August 2022.

Europe’s construction sector set to slow as demand plummets. High-interest rates and soaring building costs have drastically reduced the demand for new buildings in Europe. Ongoing projects and a heightened focus on sustainability have prevented construction volumes from shrinking. However, a steep decline begin is expected to emerge in 2024. There are signs that volumes will start to shrink soon as the late cyclical nature of the sector begins taking effect. Due to long lead times, it’s likely to take a while before these effects are going to be reflected in construction output volumes.

Germany unveils relief measures to prop up construction industry. The government said it was shelving proposed building regulations as part of a EUR45 Bn (USD47 Bn) relief package to prop up a construction industry stricken by high-interest rates and rising costs. Berlin will make EUR18 Bn (USD19 Bn) available until 2027 for affordable housing, with the rest of the funding coming from federal states and municipalities. The government has also put on indefinite hold plans to require more stringent building insulation standards, an effort to help prop up the ailing building industry.

Egypt’s National Railways has announced a plan to modernise the 125km rail corridor that runs along the east bank of the Nile between Cairo, Giza, and the city of Beni Suef. The work will involve upgrades to signalling, track, and stations. When complete, the two will maintain the link for another five years. A portion of the EUR340 Mn (USD357 Mn) cost of the scheme will be provided by the World Bank as part of its Railway Improvement and Safety for Egypt project.

Bangladesh is expecting at least USD21 Bn South Korean investment in big infrastructure and other projects, including the country’s maiden subway and the Dhaka Circular Railway, under public-private partnership (PPP). PPP Authority officials said the proposed projects would help improve the country’s infrastructure while experts believe investment under the PPP would help reduce pressure on Bangladesh’s internal resources.

Saudi Arabia has approved the railway link project with Kuwait. The agreement was approved during a cabinet meeting held in NEOM city headed by Crown Prince and Prime Minister Mohammad bin Salman. Kuwait has issued a study and design tender for first stage of the 565-kilometre Kuwait Railway Project, which comprises of a Gulf track, a commercial track, and an economic track.

Construction input prices ticked up 1.5% in August, the first increase in six months, due to a surge in energy costs, according to a new Associated Builders and Contractors’ analysis of U.S. Bureau of Labor Statistics Producer Price Index data. Overall construction costs remain 0.2% lower than a year ago, while nonresidential input prices inched up 0.2% since last year, according to the report. Although the flattening of costs over the past six months suggested inflation had been cooling, expectations for continued price drops should remain in check.

Trimble has announced that it is establishing a ‘state-of-the-art’ Technology Lab at Purdue University in Indiana, US, focused on teaching and research for construction management technology. The lab is hosted by the School of Construction Management Technology within the Purdue Polytechnic Institute and will bring Trimble’s construction technologies into a dedicated learning environment for Purdue students to learn and innovate.

WSP, the Canadian building company, announced it is developing new applications for the technology, which can cut carbon emissions and project costs. WSP is researching new applications for 3D-printed concrete, including infrastructure and clean energy projects. The method can help reduce labour costs, waste, and planning time.
With 3D-printed concrete, a robot layers beads of concrete to build structures from the ground up

The UK could attract around GBP40 Bn (USD48.6 Bn) in investment for its economy by 2030 by accelerating the deployment of carbon capture and storage (CCS) technology, according to the Carbon Capture Storage Association (CCSA).
In its latest Delivery Plan, the CCSA explored the potential of the more than 90 CCS projects in the pipeline capable of capturing around 94m tonnes of carbon dioxide (CO2) annually, a 29% increase from last year. The roll-out of these projects could safeguard existing jobs in CO2-intensive industries such as cement and steel, while creating new opportunities in green economy sectors.

Holcim announced the opening of its Innovation Hub in Lyon, France, to showcase its sustainable building solutions and serve as a co-creation lab to accelerate low-carbon, circular and energy-efficient building worldwide. Spread across three floors, the Hub offers working spaces to host start-ups and think tanks to accelerate innovation together. It will also serve as an urban dialogue platform to explore the future of sustainable cities and their construction via interactive exhibits and events.

Cement sales in Vietnam declined 11% YoY to 4,471,258t in August 2023 when compared with August 2022, according to the Vietnam National Cement Association (VNCA). Of this total, Vietnam Cement Industry Corporation reported sales of 1,375,727t, down 12% YoY. Other VNCA member companies saw sales fall by 16% YoY to 995,531t. Non-VNCA member sales decreased by 9% YoY to 2,100,000t in August 2023.

Cemex has been in talks to sell its subsidiary Cemex Dominicana. The Mexico-based group is reportedly working with JPMorgan Chase & Co on a potential divestment worth over USD1 Bn. Cemex has been operating in the Dominican Republic since 1995 when it acquired Cementos Nacionales. It runs the integrated 2.4 metric tonne/year San Pedro de Macorís cement plant. It employs 1500 people directly.

Galliford Try reported a strong operating performance after reporting increased revenue and profit for the year ended 30 June 2023. Galliford Try’s Revenue is up 12.6% to GBP1,394 Mn (USD1690 Mn), while pre-exceptional profit before tax (excluding contract settlement write off) rose by 22.5% to GBP23.4 Mn (USD28 Mn). Revenue growth benefited from a higher level of activity from the AMP7 program in the water sector and the first full year of trading following the acquisition of the water operations of NMCN out of administration.

Turner & Townsend saws its turnover grow 39% last year to pass GBP1 Bn (USD1.2 Bn) for the first time. Turner & Townsend has been growing rapidly since CBRE took 60% stake two years ago. UK revenue in the year to 30th April 2023 was up 26% to GBP404m. Globally, Turner & Townsend reported turnover at GBP1.2 Bn (USD1.5 Bn) and net revenue at GBP1.1 Bn (USD1.33 Bn), up 39% and 37% respectively.
UK growth has been supported in part by the acquisition of London-based cost management business Alinea in February, adding GBP15 Mn (USD18 Mn) to annual revenue.

Hoffmann Green Cement Technologies reported revenues of Euro1.68 Mn (USD1.77 Mn) during the first half of 2023, more than triple those recorded in the first half of 2022. The producer’s sales volumes of its clinkerless cement also more than tripled, to 7340t. It says it is on course to achieve its full-year 2023 target of 24,000t. The commissioning of its H2 plant in France raised the company’s installed production capacity by 250,000t.

Suez Cement Group of Companies (SCGC) has announced its rebranding as Heidelberg Materials, a global brand that reflects the company’s leading role in the path to carbon neutrality and digitalisation in the building materials industry. Under the new brand identity, Heidelberg Materials in Egypt has reaffirmed its vision to continue leading the change in the sector towards sustainability and digitalisation, for the benefit of its customers, employees, shareholders, and society at large.

AC3D, a U.S.-based 3D construction printing technology company is launching its operations in the UAE. The announcement was made during Middle East Reverse Engineering & Additive Manufacturing Conference & Showcase in Dubai. The company aims to accelerate the construction processes, achieving up to four times increase in speed while using sustainable printing materials. AC3D uses 100% cementless geopolymer for nearly net-zero construction process.