AREA NOT AFFECTED BY CEMENT SHORTAGE

A cement shortage hasn't hit Southeast Missouri, but with a booming economy and great construction weather it could.

Builders in Oklahoma, Texas and other Southwest areas are feeling the pinch of the cement shortage that has led to supply allocations, a backlog in orders and a general delay in construction.

A spokesperson for McDonald Company Inc. of Cape Girardeau said the company had been informed of a possible shortage during the summer, but "it hasn't happened yet."

"A shortage has hit certain areas of the country," said John Burian, director of operations at Lone Star Industries, which produces 1.3 million tons of cement a year at its Cape Girardeau plant. "One of our plants in Oklahoma is on an allocation basis with some customers."

Lone Star has cement plants in operation at five sites throughout the U.S.

"We haven't had any problems here yet," said Burian. "Nobody is on allocations or reduced shipments."

The use of cement is expected to be heavy even into the winter months.

President Clinton unleashed a torrent of public-works money last month when he signed a $203 billion transportation bill that will pay for everything from widening highways to installing flush toilets at interstate rest stops. Over the next six years, the federal government will spend $167 billion improving, widening and extending its highway system. It will spend an additional $36 billion improving mass transit systems.

"That's a lot of cement," said Burian.

Burian agreed the economy and good weather have fueled the increased use of cement.

With drought conditions in the West and Southwest, there has been no slowdown in construction.

Prices for cement, the key ingredient for concrete, are climbing. Cement increases in price each year, but this year the increases have been heavier.

This marks the cement industry's fifth year of record consumption, said Bruce McIntosh of Portland Cement Association, a trade group that represents cement and the market.

The domestic production has been falling below domestic demands. Imported cement has nearly tripled over the past five years.

In 1992, builders bought 6.2 million tons of cement from foreign sources. By 1997, imported cement totaled 17.6 million.

The Portland Cement Association reports that domestic cement manufacturers are operating at between 94 and 100 percent capacity. A total of 118 cement plants operate in the U.S.

Manufacturers acknowledge they are in a period of unprecedented demand, but some feel that the shortages are likely short term. Three or four new cement plants will be in operation by 2002.

Southdown, a major national supplier of cement, has not had to allocate delivery to its customers, said Steve Miley, senior vice president of sales for the Houston-based company. Southdown's facilities are running at 95 percent output.