Thick as a Brick
Thick as a Brick - Matt Hogan tips me to an interesting article on cement and concrete shortages. Hey come on! This stuff matters:
It’s a serious and costly problem for construction firms, which depend on cement to build everything from home foundations to highways to swimming pools. Because contracts are typically signed months in advance, firms are usually unable to pass along the added costs to their customers. And construction companies are being forced to leave some of their crews idle for days at a time as they wait for cement to arrive, leading to expensive delays.
For consumers in some parts of the USA , it means home projects, such as the pouring of a new driveway, may be delayed or even canceled. And the cost will likely be higher than estimated a few months ago.
Why are we idling workers in the construction industry? Among other reasons:
The U.S. has imposed tariffs on Mexican cement since 1990 after the U.S. accused Mexico of dumping cement on the U.S. market or selling below cost.
Currently, the tariff amounts to about a 40% addition to the Mexican firms’ selling price for cement. It’s been as high as 80%. Even with the tariffs, Mexican cement is flowing into the USA , accounting for about a quarter of all U.S. cement imports.
But the construction groups claim there is enough excess cement in Mexico to put a large dent in the U.S. shortage if the cement could come in unencumbered. Plus, the NAHB says, the impact could be felt quickly, noting it takes only four days for cement to be imported into the USA from Mexico , less than one-tenth of the time it takes for the product to come from Asia
But you can’t just BUY cement from Mexico. Oh no! You can’t even just drop your stupid tariff either:
Commerce Department officials have been in negotiations with their counterparts in Mexico and with the U.S. cement industry, which has supported the tariffs. One option under consideration involves targeted relief, meaning tariffs would be reduced or removed from cement coming from Mexico into specific parts of the USA where cement supplies are low.
Although the negotiations have been taking place almost weekly, a decision is not imminent.
At least we’re not idling our trade negotiators and lobbyists. I bet their driveways get poured on time, too.
