Aggregates Manager Digital Magazine
Issue link: http://read.dmtmag.com/i/619545
In December, the Aggregates Industry Outlook (AIO) dropped by more than 4 percent against November, to an overall score of 125.60. The decrease came despite the passage of the fi rst long-term highway bill in recent history, and seems to be based on two key drivers: a weak economy in California and concerns about weather conditions across portions of the United States. On a positive note, low fuel costs continue to provide benefi ts to operators across the nation. Comments: As most of our exposure is in the southeast and Texas, I can only comment on those areas. Weather and transportation infrastructure funding will tell the tale going forward. — O.F. "Russ" Patterson, III, Chief Geologist, Patterson Exploration Services We're looking at an improving construction economy helped by lower fuel costs overall and continuing low interest rates. We also feel the need for infrastructure repair and construction, in every sector, will be on every government agenda. This will need the imperative collective support from our industry. — Rick Gerroll, Sales Executive, County Materials Corp. There has been an uptick in VDOT work for the coming year. — Elisha D. Hall Jr., Drilling Superintendent, Boxley The low cost of fuel is greatly assisting our industry! — Karen Hubacz-Kiley, Chief Operating Offi cer, Bond Construction Corp. Obviously, passage of the transportation bill is a huge positive for the overall industry. — Lewis Graham, President, GeoCue Group Here in California, the state is basically bankrupt, and, for the aggregate industry, that spells doom. There are no new roads planned to be constructed in northern California, and to get a new pit in place and opened is taking at least two years and at a cost of several million in fees and bonds, mostly for political reasons. The construction industry is basi- cally dead in the high-rise arena. — Dr. Abe Beagles, CEO, Mother Lode Mining, Inc. Deteriorating weather is responsible for declining demand, although sales have been respectable to this date. Weather will, of course, be the determining factor for sales through the off-season months, although the coming spring season appears to have a strong potential. — Robert L. Stone, Manager Sales and Compliance, Hunter Sand & Gravel, LLC July August September October November December 100 110 120 130 140 150 Aggregates Industry Outlook 129.05 130.00 128.42 130.99 125.60 122.49 AGGREGATES MANAGER / January 2016 7