Aggregates Manager Digital Magazine
Issue link: http://read.dmtmag.com/i/891178
AGGREGATES INDUSTRY OUTLOOK The October Aggregates Industry Index dipped slightly to an overall score of 128.38, a 0.76-percent decrease from September. Respondents reported mixed opinions on the impact of recent hurricanes on both production and demand, with some noting the short-term decrease in demand, while others anticipate the gains of a long-term recovery. Minimal changes were reported for most business sentiment indicators, including industry and company outlooks, as well as sales, for the quar- ter and half. Monthly sales experienced a slightly more signifi cant decrease with a 7.5-percent decline, compared to Septem- ber. More optimistic results were report- ed for annual sales, with a 7.3-percent increase over September results. Sand and gravel reserves are depleted in the Denver metro area. All demand is being pushed on the crushed stone operation. Rail (is) soon to enter the market. — Al Frei, Jr., President, Albert Frei and Sons Given the aftermath of two destructive hurricanes and their relative impact on the Southern United States, I see a spike in aggregate demand and production. Coupled with available funding, I believe producers are in a position to increase inventory that will remain very liquid. — Jill Shackelford, President, Jill Shackelford ConsultingExploration Services Houston, along with the Gulf Coast Region, is still in recovery mode from Hurricane Harvey. I think it will be another three to six months before we can get an accurate read on the direction of the market. — Rob Van Til, Managing Partner, River Aggregates, LLC In our state of Mississippi, our road funding is down almost 30-35 percent. The budget is still shrinking and our lawmakers turn a blind eye to our road system's decay. — Tim C. Rakestraw, Area Aggregates Manager, APAC, Inc., an Oldcastle Company Despite early year impacts due to weather, 2017 is shaping up to be as good as 2016. Anticipation is high that the economy will maintain on its course in 2018. — Daryl Zeiner, Sales Manager, The H&K Group In the Southeast, exploration related to potential greenfi eld sites, along with quarry expansions, is brisk. This being the case, 2017 continues as one of our busiest in the last 40 years. — O.F. "Russ" Patterson, III, Chief Geologist, Patterson Exploration Services 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 Oct. 2016 Dec. 2016 Aug. 2017 Sept. 2017 Oct. 2017 Jan. 2017 Feb. 2017 March 2017 April 2017 May 2017 June 2017 July 2017 Nov. 2016 111.00 140.38 129.36 135.06 133.61 134.60 128.38 132.37 139.94 122.43 139.35 124.24 108.08 VALUE OF CONSTRUCTION PUT IN PLACE, SEASONALLY ADJUSTED ANNUAL RATE Type of Construction 8/1/2017 7/1/2017 % change May 2017- April 2017 % change May 2017- May 2016 Residential 526,543 524,159 0.5 11.3 Non-residential 691,769 688,118 0.5 -3.4 Offi ce 71,221 69,837 2.0 0.6 Commercial 85,432 85,517 -0.1 9.8 Health Care 40,378 39,041 3.4 3.0 Educational 86,496 83,608 3.5 -2.9 Transportation 41,774 40,949 2.0 5.2 Power 101,073 100,551 0.5 -8.0 Highway and Street 82,218 83,257 -1.2 -5.9 Sewage and Waste Disposal 18,241 18,481 -1.3 -17.2 Manufacturing 61,390 64,075 -4.2 -20.8 Seasonally adjusted annual rate. (Millions of dollars. Not all sub-categories of non-residential construction are included.) Source: U.S. Census Bureau