Estimate economic impacts resulting from BFRL’s research in support of its Virtual Cement and Concrete Testing Laboratory (VCCTL).

Objective:

Estimate economic impacts resulting from BFRL’s research in support of its Virtual Cement and Concrete Testing Laboratory (VCCTL).

Problem:

The optimization of concrete is a labor-intensive and costly process, due both to the wide variety and variability of starting materials and the inherent waiting period of 28 days before obtaining critical testing results. A typical cost to produce and test a single batch of concrete is several hundred dollars. BFRL’s VCCTL is designed to reduce the number of physical concrete tests needed by developing and applying a higher level of materials science understanding and performance prediction. With many companies testing thousands of batches of concrete annually, the potential cost savings worldwide could be on the order of tens of millions of dollars. Furthermore, VCCTL research could inform development of performance-based standards for cement and concrete, thereby fostering innovation. A retrospective economic impact study would illustrate VCCTL’s impact. A retrospective study is one that quantifies impacts based on research to date, estimated over a fixed study period beginning in the past, and usually concluding in the future. For a continuing research program, such as VCCTL, a retrospective study is hard because a representative case study with assessable impacts must be identified.

Approach:

In FY08, BFRL will direct its VCCTL economic impact study to focus on developing a case study of the program’s retrospective impacts. The case study is being identified in FY07 in collaboration with VCCTL program and project managers. In FY08, an economic framework for the selected study will be fleshed out, informed by BFRL’s general understanding of the nature of the internal and external economic pressures facing the cement and concrete industries, whom in particular these pressures affect, and the nature of VCCTL’s role in reducing these economic pressures. The framework will provide the underlying structure for estimation and attribution of monetary benefits and costs. Preliminary benefit and cost data for each benefit and cost item in the economic framework will be collected in consultation with the BFRL Materials and Construction Research Division (MCRD), VCCTL consortium members, and outside experts (e.g., Portland Cement Association economists).

The FY08 effort will culminate in a white paper outlining the framework and preliminary dataset for the VCCTL case study. The paper will serve as a basis for feedback and input from MCRD managers and researchers.

In FY09, BFRL will conclude the economic impact study by incorporating MCRD feedback on its framework and dataset and developing economic impacts in a manner consistent with ASTM standards and comparable to existing BFRL economic impact studies. Having BFRL economists with significant expertise in the area conduct this study assures consistency with previous studies and effective use of scarce laboratory resources.

Project success will be achieved with a WERB-approved NISTIR delivered on schedule.

The study is expected to help BFRL managers prioritize research. It will also help industrial members of the VCCTL Consortium to support continued, even increased, sponsorship of the effort, thereby helping BFRL leverage its resources to best meet construction industry needs.