Aggregates Manager Digital Magazine
Issue link: http://read.dmtmag.com/i/815541
AGGREGATES INDUSTRY OUTLOOK For the fi rst time since the November election, the April Aggregates Industry Index fell slightly to an overall score of 139.94, a 0.32-percent drop from March. While industry reports have been quite consistent over the last three months, slight variations can be seen between March and April responses. Two areas experienced more than nominal move- ment this month. Industry expectations for the next year are down by 2 per- cent, and reports for monthly aggregate sales fell by 1.9 percent. All other April results were within a single percent of March reports, and the outlook contin- ues to be quite strong. The economic upturn and President Trump's commitment to an infrastructure program are very encouraging signs for 2017 and beyond. — Bill Schmitz, Vice President, Quality Control and Sales, Gernatt Asphalt Products, Inc. Weather is always a key player in the spring for the Ontario/ Quebec market. — Jeremy Chessell, Aggregates Performance Manager, Lafarge Canada Inc. With the focus on infrastructure rehabilitation and maintenance, as well as the state of general development within the current economy, the outlook into the foreseeable future is positive. — Alan C. Burnette, Director, Resource Development, Lehigh Hanson The economic outlook since the Trump presidency began is extremely positive with construction in our area increasing as a result. Likewise, interest in greenfi eld sites is peaking. Finding a core drill for a project is becoming more diffi cult. — Bob Fousek, President, FMR The fi rst quarter has come and gone bringing producers in the Northeast and other northern states to a bright spring start-up and positive production year. As far as I can tell working around the country, those producers in states not so much weather prone have been enjoying a positive 2017, which should correlate to the northern producers. It appears that the U.S. roads, bridges, and other infrastructure may fi nally get some real money from Congress this year. On another side of the business, frac sand exploration has taken off in a big way, especially in Texas, with at least one modular plant ready to be placed on site. — Mark J. Zdunczyk, Consulting Geologist, Mark J. Zdunczyk. Department of Transportation funding, coupled with federal infrastructure incentives, should provide a continued positive outlook for the aggregates industry. — Jill Shackelford, President, Jill Shackelford Consulting We have held steady for the past three years. In our coal-driven local economy, I consider that a victory. It appears as though this year is going to be as good or slightly better than the past three. — Jon Thompson, President, Letart Corp. Editor's note: To join our panel, email Editor-in-Chief Therese Dunphy at tdunphy@randallreilly.com. 100 105 110 115 120 125 130 135 140 145 150 Aggregates Industry Outlook Aug. 2016 Sept. 2016 Oct. 2016 Dec. 2016 Jul. 2016 Jan. 2017 Feb. 2017 Mar. 2017 Apr. 2017 May 2017 Apr. 2016 May 2016 Jun. 2016 128.99 128.15 111.00 140.38 126.03 139.94 111.42 109.80 122.43 139.35 124.24 108.08 119.44 CENSUS CONSTRUCTION DATA Type of Construction 2/1/2017 1/1/2017 % change Feb. 2017- Jan. 2017 % change Feb. 2017- Feb. 2016 Residential 490,969 482,224 1.8 6.2 Non-residential 701,853 701,616 0 1 Offi ce 75,487 75,386 1 13.9 Commercial 80,479 81,205 -1 12.2 Health Care 39,638 40,430 -2 -0.8 Educational 92,811 92,205 1 3.6 Transportation 39,361 39,611 -1 -10.6 Power 98,594 96,738 2 4.5 Highway and Street 89,164 87,991 1 -5.1 Sewage and Waste Disposal 18,975 18,960 0.1 -27.7 Manufacturing 67,323 68,533 -2 -9.9 Seasonally adjusted annual rate. (Millions of dollars. Not all sub-categories of non-residential construction are included.) Source: U.S. Census Bureau