CMC sees construction jobs returning

Aug 13, 2014 | 03:23 PM | Nat Rudarakanchana

Tags  Commercial Metals, CMC, rebar, Carey J. Dubois, private construction, nonresidential construction, Nucor, Gerdau Long Steel North America Nat Rudarakanchana

NEW YORK — Commercial Metals Co. (CMC) is seeing more-profitable private construction business returning and displacing low-margin public construction jobs.

Private construction offers fell to a low of 28 percent of CMC’s bid activity in November 2012, down from pre-recession levels when the private-public mix averaged 70-30, treasurer and vice president Carey J. Dubois said during Jefferies LLC’s 10th annual Global Industrials Conference in New York.

Now private construction is returning, with private and public bids seen by CMC in its fiscal third quarter at an even 50-50 split—a favorable trend for the third-largest U.S. producer of concrete reinforcing bar. "As that gravitates more towards the 70-percent level we had pre-recession, we think that’s going to be a good factor on the fab (fabrication business)," Dubois said. ....





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