Got a new project that calls for concrete?

Unless you can get by on a couple of the bags of the stuff you mix yourself, plans will probably be put on hold for awhile in light of the current cement shortage afflicting northwest North America.

For the first time in its 16-year history in North Dakota, Lafarge Dakota is putting its customers on a 50 percent allocation of cement mix, according to general manager Paul Chale. Lafarge Dakota, owned by Lafarge North America, is the primary cement supplier to most of the state’s major cities, including Bismarck, Minot, Fargo, Grand Forks, Jamestown, Valley City, Dickinson, Williston and Wahpeton.

“Yes, there is actually a shortage of cement in the area, and that includes South Dakota, North Dakota and points further west,” Chale confirmed Tuesday. “The PCC Dakota cement plant, which provides our supply, has been at 70 percent of productivity since August. We’ve tried to avoid rationing, but the supply chain has tightened and we’re seeing demand far exceeding supply. We’ve had to put our customers on 50 percent of their normal allocation.”

Atlas Inc., one of the largest concrete contractors in Bismarck, is attempting to find other suppliers, according to MDU Resources spokesperson Art Thompson. MDU Resources owns the Knife River Corporation, which owns Atlas.

“I don’t know how long this will last,” Thompson said. “We’re taking it on a week-by-week basis.”

Atlas is involved with several big projects in Bismarck, including the the Wal-Mart Supercenters, work on MDU’s corporate campus and projects at Pinehurst Square, which includes the Lowes and Kohl’s stores. Atlas is still working on a strategy on how it will allocate its supplies to the ongoing projects, and Thompson assumes Atlas won’t be taking on any new projects in the near future.

Dickinson Concrete and Ready Mix manager Scott Olin says his company won’t be providing any concrete for jobs other than those in progress. Dickinson Concrete and Ready Mix is providing product for the new Wal-Mart Supercenter there.

“This is the first week we’ve really been impacted,” Olin said. “We’re trying to stretch our allocation as far as we can.”

Since starting in the concrete business in 1978, this is the first time Olin’s seen allocation reduction of cement.

Chale explains it’s a combination of issues that have caused the cement shortage. He points to the general economic upturn, which is very visible in the Bismarck area, as part of the cause.

“We did recently encounter some manufacturing problems at major plants in the west,” Chale added.

Cement production is somewhat cyclical, according to Chale, particularly in the northern climates where the construction season is limited. Cement demands usually go down in December and suppliers are able to build their inventory. Inventories are drawn down June through October and by October, inventories are usually near exhaustion.

“October is typically a tight month. We have a fairly close supply-and-demand ratio, but this year we got caught with no inventory,” Chale said. “What’s unusual are production reductions because of plant problems.”

Chale notes the shortage appears to be limited to the northwest. Plans are to relocate rail cars used to transport cement product from the west to the east. But it takes time to reposition the rail cars.

“I anticipate the allocation reduction is going to be a five- to six-week problem,” Chale added.

Anyone coming in with a new project to Northern Improvement is apprised of the situation and told they will likely have to put off the work for awhile, spokesman Bruce Thompson said.

“We’re proceeding on projects, but not with the speed we would like,” Thompson said.

Bismarck city engineer Mel Bullinger says his department was informed late last week by one of the city suppliers that its allocation had been drastically reduced.

“We’re trying to prioritize what improvements we can do, but we don’t know what the duration of the reduction will be and we haven’t gotten any indication from our suppliers,” Bullinger said. “We have things we want to get accomplished — curb and gutter, driveways and sidewalks.”

Usually the concrete flatwork done to the city is shut down when the ground freezes hard, according to Bullinger.

“I’ve seen us shut down anywhere from early to mid-October. It depends on the fall,” Bullinger added. “If this lasts five to six weeks, that will definitely take us to the end of the season.”

Chale notes that cement is a global commodity and North America uses about 9 percent of the world’s supply, as compared to southeast Asia, which uses about 30 percent.

“Southeast Asia is typically an exporter of cement, but the last few years it’s been importing and that’s taken away our import capability,” Chale said. “Imported cement is not coming in fast enough.”

(Reach reporter Gordon Weixel at 701-250-8255 or gordon.weixel@bismarcktribune.com