Cement volumes reveal worrying trends in European economies

The relationship between cement volumes and employment rates reveals some interesting economic trends, according to Nicola Zampella, director of Federbeton Research Centre. Federbeton is an Italian association representing companies in all parts of the concrete supply chain. “It seems fairly obvious to say that there is an inverse correlation between cement consumption and unemployment levels,” said Zampella, speaking at the World of Concrete Forum in Paris this week. “But the relationship between them can
April 27, 2018 Read time: 2 mins
Nicola Zampella, director of Federbeton Research Centre

The relationship between cement volumes and employment rates reveals some interesting economic trends, according to Nicola Zampella, director of 8773 Federbeton Research Centre. Federbeton is an Italian association representing companies in all parts of the concrete supply chain.

“It seems fairly obvious to say that there is an inverse correlation between cement consumption and unemployment levels,” said Zampella, speaking at the World of Concrete Forum in Paris this week. “But the relationship between them can also indicate the arrival of a speculative bubble.”

Unlike the rest of Europe, both Italy and Spain experienced a second crisis, a few years on from the global financial crisis that hit almost everywhere in late 2007 and early 2008. Zampella hypothesises that this is because both Italy and Spain are heavily tied to the construction and concrete markets.

Investment in construction should remain at 10-15% of GDP, otherwise there is a risk of instability, says Zampella. He highlighted the example of Spain which is currently experiencing rapid – and potentially unstable - growth due almost entirely to rapidly increasing activity in the housing sector.

Italy’s economy, says Zampella, has been in constant decline since 2007 and has only levelled out in the last two years.

For more information on companies in this article

Related Content

  • Low carbon concrete needs holistic approach, not just cement
    April 24, 2018
    The whole supply chain must be addressed if the goal of low carbon concrete is to be achieved, says Koen Coppenholle, chief executive of Cembureau, the European Cement Association. Cement makes up just 10-15% of concrete, but is the most energy-intensive ingredient – although the carbon footprint of the other elements should not be overlooked. Also, the post production carbon impacts of concrete must be considered, said Coppenholle, speaking at an Intermat forum on concrete and the challenge of low carbo
    Read More
  • Strong investment growth in the world’s highways was a key driver in John Deere and Wirtgen coming together
    December 21, 2017
    John Deere’s recent acquisition of the Wirtgen Group was driven by the way in which two leading equipment manufacturers could come together with no product overlap and target strong investment growth in the world’s highways sector
    Read More
  • The market is due for a slowdown
    December 13, 2012
    There is nothing that fuels economic uncertainty like economic uncertainty. Lack of confidence amongst investors ensures a reluctance to invest, and that is a common problem for many of the markets around the world at present. The financial crash that started in the US in 2008 and then spread to Europe is an economic malaise that has lasted longer than previous recessions and has had a wider effect for the world economy. Europe has been hard hit and speaking at the recent Committee for European Constructio
    Read More
  • Worldwide machine sales growing
    July 18, 2012
    Steady growth in machine sales reflects global demand for construction equipment - Mike Woof reports Keynote speakers at the UK’s Construction Equipment Association (CEA) recent annual general meeting revealed steady demand for new machines worldwide. Although Europe’s economy remains troubled, worldwide machine sales are strong and exports are providing huge turnover for manufacturers. Colin Timms of Off-Highway Research said that global equipment sales last peaked in 2007 at $98 billion, falling to $55 b
    Read More

Highlighted Content