Aggregates Manager Digital Magazine
Issue link: http://read.dmtmag.com/i/853705
AGGREGATES INDUSTRY OUTLOOK The July Aggregates Industry Index in- creased for the fi rst time since March to an overall score of 133.61, a 0.94-percent increase from June. After experiencing large jumps following the election and the beginning of Donald Trump's presidency, the index dropped slightly and is showing signs of stabilizing. Outlook responses given on a fi ve-point scale rose across the board, with the largest increases being reported in terms of the outlook for aggre- gate sales during the next quarter and the next year (each up 0.09 point), followed closely by the outlook for respondents' companies (up 0.08 point). Improvements in weather conditions are allowing planned projects to begin. With the improved weather in the Northeast, shovel ready projects are fi nally proceeding. Bidding has been robust, and optimism about the economy continues to grow. We anticipate a strong third and fourth quarter. — Daryl Zeiner, Sales Manager, The H&K Group The market seems fl at, but very solid. — Michael Stratman, Northeast Division Manager, OMG Midwest/Mallard Sand and Gravel We have seen a huge surge in business in the last six months. It is good to see the market as positive as it is, and projects are springing up like we haven't seen in years. Let the good times roll. — Bob Fousek, President, FMR Major producers' profi ts are up. Mergers and acquisitions are up. Greenfi eld sites are on the rise. The aggregate industry is certainly rebounding in the Southeast and Texas. We love it! — O.F. "Russ" Patterson, III, Chief Geologist, Patterson Exploration Services. Despite weather trends, we forecast positive materials volume and price growth for the full year 2017. — Damian Murphy, Regional President, Summit Materials The demand for construction-related products has been good. We are expecting future growth in these product lines with the need for more production equipment to meet these demands. We are installing additional equipment at both our wet screening and dry screening operations. — Van Stockstill, President, Consolidated Aggregates Continued opposition to greenfi eld sites plays a role in the permit- ting cycle, however, the aggregates industry and a vast majority of operators are doing a great job demonstrating that the environment and industry are not mutually exclusive. I see great opportunity in this area, coupled with infrastructure funding for maintenance that will solidify the need for future reserves and aggregate production. — Jill Shackelford, President, Jill Shackelford Consulting 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 Aug. 2017 Jan. 2017 Feb. 2017 March 2017 April 2017 May 2017 June 2017 July 2017 Nov. 2016 111.00 140.38 139.94 132.37 133.61 135.06 111.42 109.80 122.43 139.35 124.24 108.08 119.44 CENSUS CONSTRUCTION DATA Type of Construction 5/1/2017 4/1/2017 % change May 2017- April 2017 % change May 2017- May 2016 Residential 515,778 518,317 -0.5 10.9 Non-residential 714,316 712,063 0 0 Offi ce 72,168 71,045 2 14.7 Commercial 83,005 83,557 -1 9.1 Health Care 39,225 39,002 1 2.1 Educational 93,553 90,979 3 6.8 Transportation 41,913 42,414 -1 -2.8 Power 100,507 99,805 1 -7.9 Highway and Street 90,777 91,653 -1 1.2 Sewage and Waste Disposal 19,393 19,160 1.2 -16 Manufacturing 70,068 71,267 -2 -10.5 Seasonally adjusted annual rate. (Millions of dollars. Not all sub-categories of non-residential construction are included.) Source: U.S. Census Bureau