Continental Airlines thinks foreign management of airlines "unlawful"

BBC NEWS
March 7, 2006

US airline attacks foreign move
Leading US airline has criticised government proposals to give foreign investors greater say in how carriers are run, calling the plan “unlawful”

Washington revealed last November that it was looking at ways of boosting foreign investment in the industry, which has suffered huge losses.

Foreign firms could be given input into route selection and marketing to encourage them to invest capital.

But Continental Airlines said the proposals were unworkable.

Legal threat

“We intend to challenge it in court,” Jeff Smisek, Continental’s president told aviation analysts on Thursday.

Current regulations limit the degree of influence which foreign investors can have over US airlines.

The 49% cap on foreign ownership of US carriers or the 25% limit on voting rights are not up for discussion.

However, the US government is seeking ways to allow foreign firms a more active role in the decision making of US airlines.

The proposed changes would only apply to investors in countries with existing aviation agreements with the US and which permit US investment in their own domestic airlines.

Mr Smisek said he was not opposed to US carriers being given greater scope to raise money from foreign investors.

However, he said the US government was trying to reinterpret legislation on control of airlines without reference to Congress as part of its efforts to negotiate an aviation agreement with Europe.

Talks on an “Open Skies” agreement between the US and Europe resumed late last year after stalling for several years.

Financial crisis

The US aviation industry has been in financial crisis since the 11 September terrorist attacks, its problems compounded by soaring oil prices, fluctuating demand and huge labour costs.

United Airlines, Delta Airlines, US Airways and Northwest have all been forced into bankruptcy protection as they try to sort out their finances.

Despite the industry’s financial problems, Washington has baulked at relaxing the ownership rules governing the industry, citing safety and national security concerns.

Unions have argued that foreign ownership could threaten jobs and employment rights.

Story from BBC NEWS:
http://news.bbc.co.uk/go/pr/fr/-/1/hi/business/4745178.stm

Published: 2006/02/23 20:44:38 GMT

© BBC MMVI

US pushes for more foreign investment in airlines
Tue Mar 7, 2006 6:26 PM ET
By John Crawley

WASHINGTON (Reuters) – The Bush administration will push ahead with a proposal to ease limits on foreign investment in U.S. airlines, despite some congressional pressure to slow down the plan or withdraw it, Transportation Secretary Norman Mineta said on Tuesday.

The proposed regulation was opposed earlier this year by mainly Democratic lawmakers concerned about the impact on U.S. jobs and airline service if global capital options for financially struggling domestic airlines were expanded.

But in recent weeks a few Republicans have begun to question whether the initiative is wise in light of the firestorm of controversy that has consumed plans by a Dubai-based company to manage six U.S. ports as part of its multibillion-dollar purchase of a rival British firm.

Many Republicans and Democrats in Congress, as well as state and local officials who lease port facilities, are worried that giving a company owned by the United Arab Emirates management control of key U.S. ports could undermine security.

The administration said any security concerns have been adequately addressed but pressure from Congress has forced a new review of the ports proposal.

While Mineta did not comment directly on the ports saga at a House of Representatives appropriations hearing on Tuesday, he did respond to concerns from two Republican lawmakers that the airline deal could pose similar security risks for the United States — especially since the 2001 attacks on New York and Washington involved hijacked jetliners.

He also angrily denounced a three-page anonymous document circulating on Capitol Hill — believed generated by an unnamed U.S. airline — that also questions the wisdom of allowing more foreign investment in the airline industry.

“They’re saying we’re going to hand over the keys of the cockpit,” Mineta said. “That’s not true. This paper is replete with inaccuracies.”

“There is nothing in the rule that would change the ownership law,” Mineta said of federal standards that limit control of an airline to U.S. citizens.

It would, however, allow overseas investors more input in key airline company operating decisions in return for a maximum investment of 25 percent of voting stock.

“We want Americans to own American airlines. We’re trying to split hairs,” said Rep. John Culberson, a Texas Republican. “This raises all kinds of red flags.”

Mineta resisted a suggestion by Culberson to pull the ownership proposal, or at least delay it. “I don’t believe we should postpone the rule,” Mineta said.

“We gave this a lot of thought. When it comes to safety and security — that’s walled off,” Mineta said.

There is little if any overseas capital in U.S. carriers. ACE Aviation Holdings, the parent of Air Canada, has an equity stake in US Airways.

In a separate interview, Rep. Frank LoBiondo of New Jersey, one of the first Republicans to openly question the administration’s handling of the ports deal and original opponent of the airline ownership proposal on economic grounds, said it is appropriate to link the two in the security debate.

“One is as critical as the other — these are critical infrastructure issues,” LoBiondo said.

© Reuters 2006. All rights reserved. Republication or redistribution of Reuters content, including by caching, framing or similar means, is expressly prohibited without the prior written consent of Reuters. Reuters and the Reuters sphere logo are registered trademarks and trademarks of the Reuters group of companies around the world.

Toll Party stages HUGE upsets sending tollers packing!

See complete list of races where we won or made it to the run-offs statewide: here.

FOR IMMEDIATE RELEASE
Contact: Terri Hall, Director San Antonio Toll Party
PHONE: (210)275-0640 Email: terri@satollparty.com

Toll Party helps tip the scale in HUGE upset of toller Carter Casteel!

New Braunfels, TX, March 8, 2006 – In what could be called a coup, the San Antonio Toll Party and the Texas Toll Party exercised their political muscles in the primaries yesterday and came up with two key victories in unseating tollers State Representative for District 73 Carter Casteel and Travis County Commissioner Karen Sonleitner. Nathan Macias won by a hair, only 45 votes, to upset incumbent Casteel.

“There can be NO doubt, in a race that close, our votes helped tip the scales in Macias’ favor! We energized folks who normally don’t vote in the primaries to get out and de-elect tollers despite the two independent races, and we scored a HUGE VICTORY!” said an elated Terri Hall, Regional Director SA TollParty.com. “Carter Casteel WAS my State Represenative and she stubbornly REFUSED to listen to her constituents on the toll issue. We sent her packing! Macias beat her 2 to 1 outside New Braunfels (Casteel’s stronghold).”

Though Casteel tried to make the campaign about who funded her opponent, at the end of the day, it’s votes not money that wins elections. SA Toll Party.com and the Texas Toll Party have now earned some serious political capital they intend to bring into the general election November 7.

“Rick Perry has been put on notice, and Strayhorn is well on her way,” Hall noted. “All politicians are on notice that if you refuse to represent the will of the supermajority of Texans, you’ll be thrown out of office!”

There was clearly an anti-incumbent backlash that began last night. Incumbents were tossed out in at least 5 house races and, notably, Senator Frank Madla on the senate side.

-30-

Macias UNSEATS toller Carter Casteel by 45 votes!

UNBELIEVABLE FOLKS! Thanks to all of your efforts, to make phone calls, work the polls, and spread the word, we just won some serious political clout! Read the story in the Herald-Zeitung below. They got the number of votes wrong, it was actually 45 votes according to the Secretary of State’s web site. EVERY SINGLE VOTE MATTERED! The anti-incumbent winds are blowing (House Dist. 9, 72, 73, 94, 101 to name a few) and it doesn’t bode well for Rick Perry. Incumbent Senator Frank Madla was also sent home and so was another toller, Karen Sonleitner up in Austin! I’m elated and exhausted. More to come…

Macias defeats Casteel by 44 votes

By Leigh Jones — The Herald-Zeitung — Published March 08, 2006

Carter Casteel lost her bid for re-election to the District 73 Texas House seat Tuesday by an unbelievably thin 44-vote margin.

After watching her early lead slowly erode throughout the evening, Casteel conceded the race at about 10:45 p.m.

Her announcement, made to roughly 50 die-hard supporters who stayed by her side until the end, was met with stunned silence.

Not 20 minutes before, the crowd on the Wurstfest grounds had breathed a collective sigh of relief, thinking their candidate had squeaked in under the wire.

But Casteel later gathered her family around her and comforted them and her supporters with motherly wisdom.

“It’s fine. Shush, it’s fine,” she said, putting her arms around as many of them as she could. “We might have lost tonight, but we are winners for two reasons. First, we did not break the 9th Commandment — do not lie. And secondly, our family for the first time in four years will be able to spend more time together.”

While Casteel was willing to call the race, the apparent winner was not.

Reached on his cell phone, Macias would not say anything about the outcome.

“I have no comment at this time, thank you,” was all he would tell the Herald-Zeitung at about 11 p.m.

Macias campaign coordinate Candace Turitto later called to say she had heard of Casteel’s concession but also declined to comment.

Although several Casteel supporters began clamoring for a recount as soon as her concession speech was finished, the defeated incumbent was not willing to talk about it yet.

“I never make those kind of decisions late at night on an empty stomach,” she said with a smile.

Casteel might have been hesitant to commit to redoing Tuesday’s count, but she wasted no time making a pronouncement about how important her loss was to the entire state.

“What this means is that no representative can take an independent vote because someone with money might take issue with it,” she said. “That’s the tough part. I’ll be all right, but this race has changed Texas politics.”

Casteel and many Texas political observers think the two-term legislator was targeted by San Antonio-area physician James Leininger for elimination from office because of her vote against a school voucher bill he had his heart set on seeing passed during the last regular session in 2005.

Through individual donations and money spent with the Texas Republican Legislative Campaign Committee, Leininger poured $786,096.36 into Macias’ bid to send Casteel home.

The money bought hundreds of minutes of television commercials and sent dozens of printed mail pieces into district residents’ mailboxes.

Casteel was able to raise $398,942.40, an amount she never thought would be required to get back to Austin.

Now that she is not planning a third term in the House, Casteel is vowing to put her energy behind efforts to help equalize the flow of money into Texas political races.

“My desire is to see that no seat is for sale. I want to make sure a school teacher’s $10 donation means as much as the millions someone else has to spend,” she said.

To her well-wishers and party faithful, Casteel offered a warning.

“Let me tell you, the Republican Party is in trouble. And we’ve got to do what we can to save it,” she said, which was greeted with a hearty chorus of “amen.”

Although she has lost the primary, Casteel still will serve in the upcoming special session Gov. Rick Perry is expected to call in April.

Macias will face a Libertarian candidate in the November general election. His opponent will be selected at the regional Libertarian convention later this month.

Williamson tries to say tolling a local issue…HAH!

See Driscoll’s blog here.

Isn’t it interesting how Ric Williamson, Governor-appointed Chair of the Transportation Commission, is responsible for diverting gas tax money to projects NOT related to transportation when he was a State Rep. (See this post for proof.) and now tries to scare us with cooked-up stats that make it look like we had better tax the living daylights out of Texans just to get us to work! To hear Williamson is to hear “the sky is falling!” Message to Williamson: taxpayers aren’t going to allow you to charge us a whole new toll tax on what we’ve ALREADY BUILT AND PAID FOR, especially when we’d be dumping more money into your leaky boat!

Williamson also says we need to throw in some free market principles into the mix to ENCOURAGE private investment. You and I know what that means, it’s what Collin County Commissioners say “automatically translates into the highest tolls for our citizens” (See post here.) Another message to Williamson: as I stated in my presentation to the Commission Feb. 23, 2006, what you’re doing doesn’t remotely resemble free market principles. This is granting a monopoly to a private company over our PUBLICLY OWNED FREEWAYS! Read this post for more on how private investment in highway corridors DOES NOT CONSTITUTE FREE MARKET PRINCIPLES!

Then, David Casteel, our SA District Engineer, who apparently drinks the same Kool-Aid as the rest of the pro-tollers, starts spouting off growth and traffic “projections.” Read about faulty traffic projections for toll roads here. TxDOT clearly DOES NOT HAVE ONE SHRED OF CREDIBILITY LEFT!

March 07, 2006
Who really decides toll issue?

When state officials began talking about building toll roads in San Antonio a few years ago, they said they’ll do it whether the local community wants to take part or not.

But when it comes to using gas taxes to help construct local toll roads, that’s purely a local decision — at least that’s what state officials are saying now.

“The San Antonio-Bexar County Metropolitan Planning Organization is in control of those funds,” Texas Transportation Commission Chairman Ric Williamson said in a recent letter to state senators Jeff Wentworth and Frank Madla.

“This is a local and regional control issue,” the letter says.

Williamson was responding to letters from the senators, who were reacting to requests from county commissioners Lyle Larson and Tommy Adkisson to consider non-tolled options for widening U.S. 281 north of Loop 1604.

Besides saying the matter is out of the state’s hands, Williamson also said it’s important to look to free market economics and invite private-sector innovation to deal with tight budgets. He also threw in some scare stats:

Over the last 25 years, population increased 57 percent and driving increased 95 percent while new road lanes went up just 8 percent, and in the next 25 years, population will go up 64 percent and driving will jump 214 percent.

Meanwhile, David Casteel, district engineer for the Texas Department of Transportation in San Antonio, sent a letter to Larson and Adkisson to try and set a few things straight.

Casteel used a lot of space to explain why simply adding overpasses on U.S. 281 isn’t enough, that access roads would almost have to be continuous, which is similar to current express-lane/frontage-road designs. To build it without tolling the express lanes, money would have to be pulled from other projects.

“However, as part of the analysis for this corridor, our consultants will examine various alternatives and we will have them analyze your proposal,” the letter states.

See this post on why TxDOT is redoing its environmental evaluations for the U.S. 281 project.

Casteel also said 91,000 vehicles a day travel U.S. 281 just north of Loop 1604 and that those numbers will balloon to 160,000 by 2035.

Famous SR 91 toll road in CA raises price to $8.50 ONE WAY on 10 mile toll road!

Read it in Toll Road News here.

See a previous post with a photo of SR 91 traffic during peak commute here.

Toll Road News
2006.02.21
CONGESTION PRICING
California’s 91XL max tolls going to 85c/mile
Top toll rates on the 91 Express Lanes (91XL) in California are going to $8.50 for the 10-mile trip 27 Feb 2006. The new high tolls apply 4pm to 6pm Thursdays and 3pm to 4pm eastbound Fridays. The new top toll rates are a 75c advance on the high tolls in effect since 29 Aug 2005. $7.75 high tolls have applied for two hours Thursdays and two hours Fridays eastbound the past seven months. Friday toll rates eastbound 4pm to 6pm remain the same in the new schedule, but the 3pm to 4pm toll jumps 75c.

One of our supporters calculated that revenues on this toll road were up 19% over the previous year. Let’s ponder the purpose of toll roads, congestion relief or profit? How about congestion manipulation for profit!

Express-News: Letters to Editor in support of our cause!

Link to letters here.

Letter to Editor in Express-News roll in to support our efforts to keep freeways free!

Focus: Toll Roads

Web Posted: 03/06/2006 12:00 AM CST

San Antonio Express-News

Thanks for plan critique

Congratulations to Terri Hall for criticizing the proposed toll roads and San Antonio transportation plans (“Toll road foe has her say,” Feb. 24).

First, the suggestion that the toll road plans aren’t congestion relief but congestion manipulation for profit rings true for many who call San Antonio home.

Second, I couldn’t agree more with the letter “Stop playing with our money” (Feb. 26). There is more than one thing wrong with an increase in our gas tax to pay for toll roads. We already pay taxes for streets, and look what we have: A U.S. 281/Loop 410 interchange or lack thereof and an increase from one to two lanes on Loop 1604 and still too much traffic congestion.

Surely, something besides the major construction that we will have to endure on an already overcrowded road can produce much more efficient solutions.

– Sonya Harvey

Appointees one-sided

I would like to cheer on the San Antonio Toll Party and Terri Hall for stopping (temporarily) the conversion of the already-paid-for U.S. 281 north of Loop 1604 and taking the time to speak out against the conversion of existing highways with Transportation Commissioner (appointee) Ric Williamson (who is for tolling existing highways).

Most people do not realize just how many existing highways this appointee wants to convert … without a public vote. This should be criminal, shouldn’t it?

Converting existing highways, without a public vote and claiming our alternative free route is the access roads, but with much slower speed limits and with all the stoplights, stop signs and yield signs. Ha! That is not free. That’s one-sided thinking.

But that’s what you’re more apt to get when officials are appointed — like Williamson, the San Antonio Metropolitan Planning Organization and the Alamo Regional Mobility Authority. All are appointed and for the conversion of existing highways into toll roads without a public vote … without your vote.

Thank you, Terri Hall, for informing us on this double-taxation plan of Gov. Rick Perry to convert existing, paid-for highways (Interstate 35, U.S. 281 North, Loop 1604, Wurzbach Parkway, Bandera Road and many more) into toll roads.

– Michael L. Maurer Sr.,
Spring Branch

Look into alternatives

The article “Toll road foe has her say” really got my dander up. The Transportation Commission, San Antonio leaders and Texas Department of Transportation are not interested in why toll roads aren’t necessary. They have already determined what is required. The only purpose of these meetings is to push their agenda.

Their cavalier attitude is very apparent. (How can we ordinary citizens know anything about these complicated issues?) The citizens who will be most affected by toll roads are too busy trying to earn a living to attend these meetings.

I was also amazed at the large group of highway engineers and other promoters at the meeting. Why aren’t they looking into alternative solutions to congestion or, better yet, access roads and overpasses?

Regarding Joe Krier’s remark about “baloney,” I wonder if he’s familiar with the proverb “People in glass houses shouldn’t throw stones.”

I’m with you, Terri Hall, but I think you are wasting your time talking to toll road proponents. By the way, I’m not a disgruntled Democrat. On most issues, I’m pretty conservative.

– John T. Elliot,
Canyon Lake

The public-private canker is spreading…now to Pennsylvania!

This reporter needs to hear from Texans that public-private partnerships have NOT worked well in Texas, they’re detested by the public, and they continued to be done in secret. In fact, these foreign companies are suing Texas taxpayers to keep the terms of these sweetheart deals SECRET from the public: read about it in the Houston Chronicle.

Notice how these two Pennsylvania lawmakers think tolling existing right of way (whether stacking or in the median) is fair game in the same breath they say they’re against tolling existing freeways!

Lawmakers propose allowing privately operated toll roads
Wednesday, March 01, 2006
BY CHARLES THOMPSON
The Patriot-News

Two legislative leaders on transportation issues said yesterday they want Pennsylvania to consider privately built and operated toll roads as a way to deal with increasing highway traffic.

Reps. Richard Geist, R-Blair, and Keith McCall, D-Carbon, said public-private partnerships have worked well in other states, including Virginia, Texas and Florida, and could bridge Pennsylvania’s gap between highway project wish lists — which Geist said now exceed $30 billion — and available public funding.

“We need to take a serious look at revenue-generating alternatives, like tolling, in order to maintain and expand Pennsylvania’s highway system,” said Geist, whose House Transportation Committee recently completed a study of toll roads in other states.

“We’re just not going to be able to raise any more revenue at the pump” through gas taxes, he said.

Geist and McCall, the committee’s senior Democrat, stopped short of proposing specific projects. Their goal is to draft legislation by year’s end to enable such partnerships and establish criteria for determining where they could work, the lawmakers said.

The two stressed they would not support placing tolls on existing highways, which, they reasoned, taxpayers already have paid for.

Adding decks or restricted-access lanes to existing highways, would be a different matter, they said.

Those improvements could be financed through public-private partnerships and tolls, they said. McCall cited the concept of a privately funded upper deck built over portions of the Schuylkill Expressway, where the existing lower lanes would remain free.

CHARLES THOMPSON: 705-5724 or cthompson@patriot-news.com.

Larson calls for PUBLIC VOTE on tolls; Perry's response: I'm not worried about the outrage.

This morning on Trey Ware’s Show on KTSA 550 AM, Commissioner Lyle Larson took his strongest stand yet in the fight to allow a PUBLIC VOTE on toll roads and he asked Perry to add transportation funding to the call in the next special session of the Legislature (believed to be in April) to address school finance. The subject of the show was about Larson’s second letter to the Governor in less than a month regarding the outcry against toll roads from his precinct. See text of his letter below.

Larson also came out strongly stating that the State is, in fact, turning private land taken exclusively through the government’s unique powers of eminent domain over to private toll operators for profit. He mentioned the only response to his first letter to Perry was a letter from Williamson with a condescending tone essentially saying none of us knows what we’re talking about and said Larson’s perpetuating the myth of double taxation. It’s no myth, Mr. Williamson, the Comptroller of the State of Texas, Carole Keeton Strayhorn, declared it as such in her report on Regional Mobility Authorities last year: see it here.

Trey Ware was astounded at such arrogance and Larson said he has been told by Perry’s political arm that his polls show only a few portions in Travis, Bexar, and Comal counties (the areas most effected by the first round of tolls on existing freeways) are upset, and Perry’s not worried about toll roads effecting his re-election. Ware chimed in that Perry is going to be booted out of office over this. Boy, do we AGREE! Continue to spread the word and get everyone you know in Texas to sign our online petition to tell Perry LOUD & CLEAR that a SUPERMAJORITY of Texans are against his freeway toll scheme: www.SATollParty.com. Let’s send ‘im packing!

SEE FOR YOURSELF…
Read Larson’s letter to Governor Perry here.

See the $8.6 billion that should have gone to highways that has gone elsewhere thanks to Ric Williamson among others:
Gas Tax Diversion Chart.

Read the Express-News article on Williamson and others’ role in this mess:
I-35 article here.

Foreign companies now own approximately 81% of U.S. cement capacity, up from about 22% in 1980.

Direct link to article here.

Overview of the Cement Industry
Concrete Basics Home > Cement Industry

Economics of the U.S. Cement Industry
Information on aspects of the U.S. cement industry including imports, exports, ownership, economic cycles, employment, and trends.
(Updated May 2003.)

The cement industry is a relatively small but significant component of the U.S. economy, with annual shipments valued at around $8.6 billion. In the United States, 39 companies operate 118 cement plants in 38 states. Worldwide, the United States ranks third in cement production, behind China — the world’s leading producer — and India.

U.S. cement production is rather widely distributed. The largest company produces just over 13% of the industry total, and the top five companies collectively produce around 53%. Foreign companies now own approximately 81% of U.S. cement capacity, up from about 22% in 1980. Investments during the 80’s by European companies, as well as Asian entities, were spurred by the favorable position of the U.S. dollar against foreign currencies.

Construction Markets
In 2002, U.S. Portland cement consumption was 103.8 million metric tons, a decline of 4% from 2001 levels. Cement’s fate — like that of most of the other building materials — is closely tied to that of the construction industry. Cement consumption is spurred by strong performance in the construction industry as a whole; however, individual sector growth, such as highway construction, affects cement consumption more heavily.

Inflation-adjusted construction spending was $693 billion in 2002, down 1.7% from 2001 levels and accounting for a 7.3% share of the national economy. Strong construction markets in the 1990’s helped boost cement consumption in that decade. Nonresidential construction, until recently, was one source of cement consumption growth. Continued strength in the public construction sector also contributed to cement’s performance. Public construction spending was $168 billion in 2002, up 3.7% from the previous year.

Authorizations of the Federal Surface Transportation Act of 1980, as well as the Intermodal Surface Transportation Efficiency Act of 1991, have provided much of the funding needed to keep the highway construction sector moving forward. The Transportation Equity Act for the 21st Century (TEA21) and its current pending reauthorization (SAFETEA) should support future consumption.

Cyclical, Seasonal, Regional
Although cement consumption is closely tied to overall construction industry performance, cement is somewhat protected from extreme cycles because cement is used in nearly every type of construction. While individual construction markets have their own distinct business cycles, at any given time cement is usually needed by at least one segment of the construction industry.

The cement business, however, is fairly seasonal. Nearly two-thirds of U.S. cement consumption occurs in the six months between May and October. The seasonal nature of the industry can result in large swings in cement and clinker (unfinished raw material) inventories at cement plants over the course of a year. Cement producers will typically build up inventories during the winter and ship them during the summer.

The cement industry is also regional in nature. Because the cost of shipping cement quickly overtakes its value, customers traditionally purchase cement from local sources. Nearly 96% of U.S. cement is shipped to consumers by truck. Barge and rail modes account for the remaining distribution modes.

Approximately 75% of all shipments are sent to ready-mix concrete operators. Plants shipped 13% of the cement they manufactured to concrete product manufacturers, 6% to contractors, and 3% to building material dealers.

Imports Fill Production Gap
The gap between domestic production and consumption was filled in 2002 by 24.2 million metric tons of imported cement and cement clinker. About 56% of cement and clinker imported in 2002 came from four major countries: Canada, Thailand, China, and Greece. Imports from Thailand, less than one million metric tons in 1998, surged to 4.3 million metric tons in 2002.

Cement and clinker importation is generally cyclical. Typically smaller amounts of cement are imported during recessions — perhaps less that 5% of total national consumption — but during boom times, imports can increase to 20% or more of total national consumption. U.S. producers tend to import the most when plants are operating near full capacity. According to PCA estimates, U.S. cement plants achieved an average capacity utilization rate of 90% in 2002.

Exports of cement seldom exceed 1% of total U.S. production. Like imports, exports are cyclical reaching marginally higher levels during economic recessions when domestic markets are slack. In 2002, the United States exported 438,000 metric tons of cement to final customers.

Efficiency Gains
Employment in the U.S. cement industry has declined dramatically during the past 20 years. In 2002, the cement industry employed 19,140 workers—a 29% reduction compared to 1982 levels. This drop in employment is the result of industry efforts to increase efficiency by automating production and closing small kilns. The average kiln in use today produces over 60% more cement than an average kiln produced 20 years ago: 468,000 metric tons in 2002 compared with 287,000 metric tons in 1982.

The cement industry has boosted efficiency by concentrating new capital investment in plants that use the dry process of cement manufacture, and by phasing out operations that rely on the more energy-intensive wet process. Since 1974, the number of wet process kilns has dropped from 234 to 54 — a decline of 77% — while the number of dry process kilns has only been reduced from 198 to 136. Nearly 56% of existing U.S. clinker production capacity has been built since 1975 — all utilizing the dry manufacturing process. Currently, about 81% of the cement produced in the United States is manufactured using dry process technology.

For More Information
Information and statistics used in this summary are presented in reports compiled by PCA from various government and private sources. For additional information of the U.S. and Canadian cement industry, refer to the Economic and Market Research pages of our web site, or contact PCA directly.