Aggregates Manager

September 2013

Aggregates Manager Digital Magazine

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by Therese Dunphy, Editor-in-Chief September 2013 Vol. 18, No. 9 /AggregatesManager @AggMan_editor Editorial Editor-in-Chief: Therese Dunphy Editorial Director: Marcia Gruver Doyle Online Editor: Wayne Grayson Online Managing Editor: Amanda Bayhi Design & Production Art Director: Sandy Turner, Jr. Graphic Designer: Kristen Chapman Advertising Production Manager: Linda Hapner Construction Media Senior VP, Construction Media: Dan Tidwell VP of Sales, Construction Media: Joe Donald 3200 Rice Mine Rd NE Tuscaloosa, AL 35406 800-633-5953 Corporate Chairman/CEO: Mike Reilly President: Brent Reilly Chief Process Officer: Shane Elmore Chief Administration Officer: David Wright Senior Vice President, Sales: Scott Miller Senior Vice President, Editorial and Research: Linda Longton Vice President of Events: Alan Sims Vice President, Audience Development: Stacy McCants Vice President, Digital Services: Nick Reid Director of Marketing: Julie Arsenault For change of address and other subscription inquiries, please contact: Aggregates Manager TM magazine (ISSN 1552-3071) is published monthly by Randall-Reilly Publishing Company copyright 2013. Executive and Administrative offices, 3200 Rice Mine Rd. N.E., Tuscaloosa, AL 35406. Subscription rates: $24 annually, Non-domestic $125 annually. Single copies: $7. We assume no responsibility for the validity of claims of manufacturers in any advertisement or editorial product information or literature offered by them. Publisher reserves the right to refuse non-qualified subscriptions. Periodical circulation postage paid at Tuscaloosa, Alabama and additional entries. All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopying, recording, or by an information storage retrieval system, without written permission of the copyright owner. POSTMASTER: Send all UAA to CFS. (See DMM 707.4.12.5); NON-POSTAL AND MILITARY FACILITIES: send address corrections to Aggregates Manager, 3200 Rice Mine Road N.E.,  Tuscaloosa, AL  35406. Editorial_AGRM0913.indd 3 GAINING GROUND on Prices S econd quarter results announced by two of the industry's biggest companies — Vulcan Materials Co. and Martin Marietta Materials — offer an interesting look into the current state of the industry. Net sales were up for both. Martin Marietta reported a net sales increase of 4 percent, while Vulcan Materials reported an increase of 7 percent. It was a mixed bag, however, for actual production tonnages. Vulcan reported second quarter aggregate sales to outside customers of 36,617,000 tons (up from second quarter 2012 sales of 35,980,000 tons); Martin Marietta reported 33,286,000 tons (down from second quarter 2012 sales of 33,906,000 tons). Martin Marietta estimated that wet weather in some markets reduced aggregate shipment volumes, but set a sales record in its Specialty Products business. In terms of market segments, both companies touted improvements in the housing market. "Housing starts in the United States are up sharply from a year ago," noted Don James, chairman and CEO of Vulcan. Non-residential construction also appears to be healthy. Martin Marietta reported a 7-percent increase in aggregate shipments to this sector. Results for the infrastructure market were mixed. James said Vulcan expects 2013 "to approximate 2012." Nye noted that an 8-percent decline in this market area contributed to Martin Marietta's overall decrease in aggregate shipments. One consistently positive outcome for both operators is an increase in pricing. "Over each of the past four quarters, our year-over-year quarterly pricing gains of at least 4 percent and the geographic breadth of the pricing improvement help reinforce our expectations for price growth of 4 percent in 2013," said James. Martin Marietta was slightly more conservative in its expectations. "Based on results through the first half of the year, we reaffirm our full-year pricing guidance of up to 2 percent to 4 percent for the aggregates product line," Nye said. While wet weather and strained government budgets impacted some market sectors, it's good to see operators achieve overall increases in prices, net sales, and gross profit margins. As the final quarter approaches, be sure to keep an eye out for the annual Aggregates Manager Forecast Survey. It's your chance to share information on your markets and benchmark against your peers. 3 things I learned from this issue: 1 When planning a portable plant move, be sure to know the weight limits for roads in each state, page 15. 2 When designing a predictive maintenance program, not all equipment should be monitored, page 20. 3 While regular assessments are based on the assignment of points, specific criteria is not available for special assessments, page 27. AGGREGATES MANAGER September 2013 3 8/15/13 3:06 PM

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