Aggregates Manager Digital Magazine
Issue link: http://read.dmtmag.com/i/518784
SPECIAL REPORT • 7 E arlier this year, the Aggregates Manager 2014-2015 Forecast Study showed that operators are optimis- tic. A total of 42 percent predicted either excellent or very good business condi- tions this year. At the same time, reports from the U.S. Geological Survey show an 8-percent increase in consumption of both crushed stone and sand and gravel throughout the first nine months of 2014. With all indications positive, it begs the question: Has improved market confidence translated to investment into updated plants and equipment? To find out, we once again asked those who know best — aggregates pro- ducers throughout the United States. In an exclusive survey, Aggregates Manager asked operators to share their current and future capital expenditure plans. A total of 141 operators answered our questionnaire — a 35-percent increase over the number of respon- dents to our previous equipment survey in 2012. Of these respondents, nearly 60 percent were owners, officers, titled executives, or plant su- perintendents. Procurement planning If capital expenditure plans are any indication, new equipment is a priority for many aggre- gates managers. According to survey respon- dents, nearly half (45.4 percent) expect their budget for equipment purchases to increase over the next 12 months. Another 46.8 percent of respondents say they anticipate similar bud- gets, while 7.8 percent expect to spend less on equipment in the upcoming year. Of those predicting an increase, 71.9 percent expect an increase of 1 to 20 percent, while 23.4 percent anticipate a 21- to 40-percent in- crease, 1.6 percent predict a 41- to 60-percent increase, and 31 percent forecast an 81- to 100-percent increase. In terms of operators who expect a decrease in cap ex spending, 36.4 percent anticipate INVESTING in Iron A new survey shows nearly one in two operators plan to spend more on equipment this year. by Therese Dunphy, Editor-in-Chief tdumphy@randallreilly.com