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Show 2monday, 1978' 71 Commercial Cement scarcity pushing prices, at least a year before relief Despite the fact cement prices in the area are the highest theyve ever been, a serious shortage promises to become worse before it gets better. Most local concrete plants are sending out of state for at least part of their cement supplies, with some producers getting cement from locations over 2,000 miles away. Even with these outside sources, many plants have cut back operations by closing on weekends and cutting back on Fridays. Gene Williams of Monroe indicated his company is getting only enough local supplies to run its plant three days a week. Any production beyond that depends on cement sources. Monroe, he says, has found some supplies in the Midwest, but he fears they will dry up out-of-sta- te by the end of June. Dan Fogle of Fogle Red E Mix agrees, saying, Weve been cut back by our cement And its going to suppliers. cause slowdowns and cutbacks, especiallly if local or sources cut back any further, he said. The shortage and increased transportation costs for eastern cement have combined to boost cement prices, with local costs at $52 per ton and costs of outside sources These 30 percent higher. higher costs have pushed concrete prices over the $30 a yard mark, with most producers charging $32 to $33 and some charging even higher prices for out-of-sta- te supplies. Industry spokesmen combination a of mild agree winter weather, when cement companies normally stockpile large supplies of cement for summer use, and an extremely high growth and building rate out-of-sta- te in the Salt Lake area caused shortage. One supplier noted his demand has doubled from what it was the last three months of last year. Statistics from the University of Utahs Bureau of Economic Research confirm that residential construction during the first quarter of this year was up 14.6 percent over the same period of 1977, with 5,496 housing starts being reported. An end to the shortage is not in sight for a least another year, when expansion projects at local cement manufacturing plants will increase local manufacturing capacity. Portland Cement plans to expand its capacity by 30 percent locally and is scheduled to build a plant in eastern Oregon which will free up supplies in Idaho, to be used in Utah. In addition, a $35 million cement plant is slated to be built at a site near Lyndyll, Utah by Stansbury Mining Corp., but construction will not begin for another six months, according to sources Construcn at tion Co., contractors for the Bowers-Sorenso- project. Some producers also feel tight money will slow the demand , thus easing cement shortages in the near future. The best way for builders to work around the shortage, says one concrete manufacturer, is to plan far enough in advance to make their needs jibe with suppliers allocation schedules. Enterprise Enterprise Is published weekly by the National Enterprise Publishing Company, Inc., 500 Continental Bank Building. P.O. Box 11778, Pioneer Station, Salt Lake City, Utah 84147. The Telephone Opinions expressed by columnists are not necessarily the opinion or policy o The Enterprise. Queries welcome. ESASE Subscriptions S24 per year 50 cents per copy Copyright 1978 by the National Enterprise Publishing Co. All rights reserved. Take as needed Monday thru Thin sday 8 to 8, (801) A Division of Friday 8 to 6, Saturday 10 to 4. Also beneficial for folding, padding, cutting, drilling, envelope and carbonless form printing transferring mailing lists to pressure sensitive labr and instant wire transmission of your documents to every major city in the U.S. 466-589- 2 1546 South State Street J Rdndall Green & Associates UNIVERSITY MAIN OFFICE COURTHOUSE BRANCH 18 West 1st South 32 Exchange Place 364-845- 363 1313 6. Second Class postage paid in Salt Lake City. Utah No. 891300 from Paperwork Congestion Salt Lake City (801)533-055- BRANCH 23 So. 13th East 582 8282 |