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Released February 24, 2023 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--U.S. President Joe Biden's administration is looking to boost domestic production of construction materials through funding from the $1.2-trillion bipartisan Infrastructure Investment and Jobs Act (IIJA), which would be a boon to domestic producers of materials such as iron, steel, copper, lumber and gypsum wallboard (also known as drywall).
As part of the of IIJA, beginning with awards received on or after May 14, 2022, "none of the funds made available for a Federal financial assistance program for infrastructure may be obligated for a project unless all of the iron, steel, manufactured products, and construction materials used in the project are produced in the United States."
Under the IIJA, "construction materials" must be fully manufactured in the U.S.
Iron and steel were already defined as "construction materials," but the IIJA added the coverage to include nonferrous metals, such as copper used in electric wiring; plastic- and polymer-based products; glass, including optical fiber; and materials such as lumber and drywall.
However, cement and aggregates--comprising sand, gravel, and crushed stone--were not included.
In April of last year, the Office of Management and Budget (OMB) issued initial guidance on how federal agencies should target funding for infrastructure projects, which included defining "construction materials." On February 9, the agency published updated guidance--seeking feedback on new proposed rules, included but not limited to:
Among the construction material-manufacturing projects Industrial Info is tracking is United States Steel Corporation's (U.S. Steel) (NYSE:X) (Pittsburgh, Pennsylvania) $500 million modernization program at its Gary Steel Works in Indiana. The project, which has been underway since December 2018, entails expanding buildings and installing new state-of-the-art production equipment and machinery at the existing 7.5 million ton-per-year steel mill. Completion is expected by the end of the year. Subscribers to Industrial Info's Global Market Intelligence (GMI) Metals & Minerals Project Database can click here for a detailed project report.
In terms of copper, a key component in electric wiring, Freeport-McMoRan Incorporated (NYSE:FCX) (Phoenix, Arizona) is expanding and optimizing a copper mine and concentrator in Morenci, Arizona, where it is increasing production about 10% to 900,000 tons per day. Completion is expected in May. The company has a 72% stake in the operation. In its fourth-quarter and full-year 2022 earnings results, Freeport reported Morenci accounted for about 43% of the company's copper production in North America in 2022. Subscribers can click here for a detailed project report.
Industrial Info also is tracking projects that involve manufacturing gypsum wallboard, commonly known as drywall. Drywall's primary component is the mineral gypsum, a rock found in deposits worldwide.
United States Gypsum Corporation (USG) (Chicago, Illinois), a subsidiary of Knauf Gips KG (Iphofen, Germany) is responsible for two projects in support of its gypsum wallboard-manufacturing plant in Plaster City, California, that is capable of producing 1 billion square feet per year.
In November of last year, USG began an expansion at its Borrego Springs-Plaster City Gypsum Quarry, which is connected to the Plaster City plant via water pipeline. The quarry project entails adding a production well to meet current operational needs and installing more than 20,000 feet of water-supply line and underground-power line from the quarry to the manufacturing plant. The project is expected to wrap up in October. Meanwhile, a modernization project at Plaster City is expected to kick off later this year, and involves replacing outdated water pipeline with new pipeline originating at the company's groundwater storage tank in Ocotillo, among other work. Subscribers can see reports on the quarry and manufacturing projects.
Subscribers to Industrial Info's GMI Database can click here for a look at the reports for all of the projects discussed in this article, and click here for the related plant profiles.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
As part of the of IIJA, beginning with awards received on or after May 14, 2022, "none of the funds made available for a Federal financial assistance program for infrastructure may be obligated for a project unless all of the iron, steel, manufactured products, and construction materials used in the project are produced in the United States."
Under the IIJA, "construction materials" must be fully manufactured in the U.S.
Iron and steel were already defined as "construction materials," but the IIJA added the coverage to include nonferrous metals, such as copper used in electric wiring; plastic- and polymer-based products; glass, including optical fiber; and materials such as lumber and drywall.
However, cement and aggregates--comprising sand, gravel, and crushed stone--were not included.
In April of last year, the Office of Management and Budget (OMB) issued initial guidance on how federal agencies should target funding for infrastructure projects, which included defining "construction materials." On February 9, the agency published updated guidance--seeking feedback on new proposed rules, included but not limited to:
- distinguishing between "manufactured products" and "construction materials," proposing the former as a product not considered to be a construction material, and one that does not "consist wholly or predominantly of iron or steel or both"
- defining "predominantly iron or steel" as a product with the cost of iron and steel content exceeding 50%, as already set forth in the Federal Acquisition Regulation (FAR) clauses for federal procurement contracts
- determining whether other construction materials, such as coatings, brick and engineered wood products, should be included
Among the construction material-manufacturing projects Industrial Info is tracking is United States Steel Corporation's (U.S. Steel) (NYSE:X) (Pittsburgh, Pennsylvania) $500 million modernization program at its Gary Steel Works in Indiana. The project, which has been underway since December 2018, entails expanding buildings and installing new state-of-the-art production equipment and machinery at the existing 7.5 million ton-per-year steel mill. Completion is expected by the end of the year. Subscribers to Industrial Info's Global Market Intelligence (GMI) Metals & Minerals Project Database can click here for a detailed project report.
In terms of copper, a key component in electric wiring, Freeport-McMoRan Incorporated (NYSE:FCX) (Phoenix, Arizona) is expanding and optimizing a copper mine and concentrator in Morenci, Arizona, where it is increasing production about 10% to 900,000 tons per day. Completion is expected in May. The company has a 72% stake in the operation. In its fourth-quarter and full-year 2022 earnings results, Freeport reported Morenci accounted for about 43% of the company's copper production in North America in 2022. Subscribers can click here for a detailed project report.
Industrial Info also is tracking projects that involve manufacturing gypsum wallboard, commonly known as drywall. Drywall's primary component is the mineral gypsum, a rock found in deposits worldwide.
United States Gypsum Corporation (USG) (Chicago, Illinois), a subsidiary of Knauf Gips KG (Iphofen, Germany) is responsible for two projects in support of its gypsum wallboard-manufacturing plant in Plaster City, California, that is capable of producing 1 billion square feet per year.
In November of last year, USG began an expansion at its Borrego Springs-Plaster City Gypsum Quarry, which is connected to the Plaster City plant via water pipeline. The quarry project entails adding a production well to meet current operational needs and installing more than 20,000 feet of water-supply line and underground-power line from the quarry to the manufacturing plant. The project is expected to wrap up in October. Meanwhile, a modernization project at Plaster City is expected to kick off later this year, and involves replacing outdated water pipeline with new pipeline originating at the company's groundwater storage tank in Ocotillo, among other work. Subscribers can see reports on the quarry and manufacturing projects.
Subscribers to Industrial Info's GMI Database can click here for a look at the reports for all of the projects discussed in this article, and click here for the related plant profiles.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
