Sunday 22 April 2018

US highway contract awards down again in September

CRH's Chief executive Albert Manifold, earlier this week it was announced that the group's bid for Ash Grove Cement had been approved
CRH's Chief executive Albert Manifold, earlier this week it was announced that the group's bid for Ash Grove Cement had been approved
Ellie Donnelly

Ellie Donnelly

The value of US highway contracts awarded in September fell 23pc year-on-year (yoy) according to the American Road and Transportation Builders Association (ARTBA).

The series can be lumpy depending on projects in individual states and Arizona is the case in point in September.

Excluding Arizona, overall contract awards fell just 6.6pc, which is more in line with the recent trend.

That trend has seen infrastructure spending disappoint through 2017, with a combination of poor weather and budget wrangling preventing full deployment of funds.

ARTBA also released its contractor survey for the three months to 30 September, which highlights problems such as continued labour shortages, increasing material costs and project delays.

The news will be of interest to Irish buildings materials group CRH, after the group's bid to purchase Ash Grove Cement for $3.5bn (€2.94bn) was approved by Ash Grove shareholders.

The deal is strategically important for CRH as it reduces the group’s dependence on third-party producers and catapults Ireland's largest company into the top three cement producers in North America.

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