Cement Shortages in the Ontario Marketplace
July 13, 2022
The following is a communication from Ready Mix Concrete Association of Canada (Concrete Ontario) with regards to Cement Shortages in the Ontatio Marketplace
Ontario's ready mixed concrete industry has been experiencing unprecedented challenges regarding the supply of raw materials required to produce concrete in 2022. The demand for construction materials remains at an all-time high, both in Ontario and in the adjacent provinces and states that we border, and global supply chain issues, combined with equipment and labour shortages, are having a very detrimental impact on our industry's ability to meet all the concrete needs in the Ontario marketplace.
These issues are further compounded by three of the five cement plants in Ontario having significant equipment break-downs that have required emergency repairs. All of these issues identified above have resulted in very significant raw material shortages that have dramatically impacted the ability of the concrete industry to produce concrete and will likely result in the closure of multiple concrete plants around the province for at least one week.
Since cement allocation and aggregate supply disruptions were taking place prior to this emergency situation, it is expected that raw material supply constraints may continue throughout the remainder of 2022. Concrete Ontario strongly encourages the entire construction industry to work closely with their concrete supplier to address realistic supply schedules and to coordinate the deliveries of large concrete placements or placements with significant quantities of supplementary cementing materials (SCMs). This improved project coordination should include:
• Coordinate with your concrete producer on a weekly basis for all critical path concrete placement items. These items should be scheduled with the concrete producer at least 7 – 10 days in advance of the scheduled placement date.
• Increasing the level of communication for specialty raw materials or high volumes of SCMs. Lead times are now often measured in months rather than days for specialty admixtures, fibers and colour.
• Identify if the concrete plant has reduced service hours or is closed due to a lack of raw materials and if this will impact current construction schedules.
Open and clear communications will be required over the coming months to address the challenges that we all face together, but our experiences from the past two years have shown us that these short-term challenges can be addressed.
Concrete Ontario (Ready Mixed Concrete Association of Ontario), its staff, officers and directors make no representation or warranty, express or implied, as to the accuracy, completeness, or correctness of this information. Opinions, estimates, conclusions, or other information expressed or contained herein are subject to change without notice and are provided in good faith but without representation or warranty aforesaid. We assume no liability for damage or loss arising from the use of information contained herein. RMCAO is not providing investment, legal, engineering or tax advice. We are not holding ourselves out to be or representing ourselves as persons who may practice law or provide legal services. Readers are urged to consult their own professional advisors for further confirmation and further information.