Supply and demand

Last month we wrote about improvements to Prairie’s fleet, plants and equipment aimed at delivering better service for you. Because we want Prairie to be the company that does what it says, we’re offering our perspective on the current cement and fly ash shortage and our strategy to prevent disruptions down the road for all our customers.

The ‘perfect storm’ that created the problem

According to an October 15 bulletin from the Portland Cement Association, the shortage reflects the slow start of the 2014 construction season, which led to a surge in demand as contractors rush to complete projects before winter 2015 arrives.

Record-breaking cold last winter created logistical issues that slowed cement deliveries early in the season, the PCA added. Historic levels of ice on the Great Lakes hindered shipments from manufacturers to distribution centers. Spring flooding disrupted barge traffic. Rail congestion and rail car shortages in the East, along with fewer drivers and trucks available system-wide, compounded the issues – resulting in major supply chain delays for all concrete suppliers, including Prairie.

Good news: it’s almost ov er

Whatever the cause, Prairie customers need concrete to complete their projects as soon as possible. The good news is that forecasts say the shortage will ease over the next 2 to 4 weeks as supply and demand fall back into alignment. This week may be especially difficult, but industry estimates suggest the end is in sight.

We’re investing $20 million to boost storage capacity

Prairie is taking action now to prevent service disruptions down the road. A $12 million dome erected this month in Charlevoix, Michigan will hold 70,000 metric tons of cement, increasing storage capacity there by nearly 25%. In February, we’ll break ground on a second $8 million dome near Lake Calumet in Chicago, enabling us to store another 55,000 metric tons – giving us 2.5 times our current local storage capacity.

Having large supplies of cement on both sides of Lake Michigan will prevent future problems for Prairie customers in all service regions.

Finishing the year strong

Tough problems like the cement and fly ash shortage can be frustrating, but they don’t change our resolve to deliver the best possible service for you. Please let our sales, service and QC people know what we can do to assist you on all current and future jobs. Thank you for your partnership throughout 2014 – and here’s to a better 2015 ahead.

For complete information on our service networks in Illinois, Indiana and Wisconsin, go to prairie.com.

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