“Looking at our business, we see no signs of a slowdown,” CMC chairman, president and chief executive Barbara Smith told investors during an earnings call last week. 

“Demand in the (fiscal) third quarter was strong across each of our product lines in major geographies. The key indicators that lead rebar consumption by 9 to 12 months remain not only positive, but robust,” she said.  “While we certainly don't discount the economic concerns making headlines, the best indicators of future construction activity continue to point toward expansion ahead.” 

Smith said the company sees several longer term trends that should support demand. 

One of those, she said, is the Biden administration’s infrastructure plan, which, in the company’s estimation, will drive 1.5 million tons of new rebar demand annually, a 17% increase.

The company expects to see that demand begin to materialize in early 2023. 

In addition, Smith said the reshoring of critical industries will also likely create new opportunities, pointing to the construction of five semiconductor facilities now being built in the U.S. 

“Given the ongoing supply chain disruptions seen in everything from basic materials like fertilizer and chemicals to manufactured products, it's reasonable to expect other industries to invest heavily in domestic capacity. We have all learned over the last 3 years that global supply chains are more fragile than previously believed in the loss of a few critical inputs can have a significant cascading effect throughout the economy,” Smith said.