Aggregates Manager Digital Magazine
Issue link: http://read.dmtmag.com/i/917007
AGGREGATES MANAGER / January 2018 13 looking forward in 2018. More than 46 percent expect it to be either an excel- lent or very good year, while another 42 percent say it will be a good year. Less than 12 percent say it will be a fair (10.3 percent) or poor (0.9 percent) year. While similar to 2017 results, the ratings show growth at each end of the spectrum. When it comes to the relationship between operation size and business ratings, bigger is better. Just over 63 percent of respondents at sites pro- ducing more than 5 million tons per year anticipate either excellent (15.7 percent) or very good (47.4 percent) business conditions in 2018. This marks a 3.9-percent increase over last year's forecast results. Conversely, respondents at sites producing between 500,001 and 1 million tons per year were the least optimistic. No respondents in this size category call for excellent business conditions in 2018, and just 13.3 percent predict it will be a very good year. Com- bined results in these top two business ratings categories plummeted 39.3 per- cent compared to last year's forecasts for operations in this size category. By commodity, sand and gravel producers anticipate a repeat of 2017 results, with 10 percent calling for excellent or very good (60 percent) business ratings in 2018. While identi- cal to 2017 results, these ratings mark an 11.2-percent increase over what sand and gravel producers projected for 2017 results in last year's survey. Crushed stone producers report a slight decrease in expectations for 2018 with 37.4 percent calling for excellent or very good business ratings — a 2.6-percent decrease from the prior year's forecast. Crushed stone & sand and gravel pro- ducers suggest the most signifi cant de- crease in top results, with a combined 6.9 percent fewer who expect excellent or very good ratings in 2018. From a regional perspective, oper- ators were the most optimistic in the Northeast with 52.6 percent who expect excellent or very good business ratings Once again, worker retention was the most commonly cited major concern for survey respondents. It was the top challenge for three of four regions: North Central (30.3%), South (30.8%), and West (30.8%). In the Northeast, however, it fell from the top concern in 2016 to its third highest challenge in 2017. Instead, aggregates availability and permitting (36.9%) was the most significant challenge for respondents in the Northeast. Major Challenges Facing Aggregates Managers 2013 Competition for Sales 32.7% Aggregates Availability /Permitting 22.8% Regulatory Fines 8.9% 57.3% Retaining Workers 5.9% Regulatory Compliance 20.8% Water Availability 5.9% Community Relations 2.0% Safety 1.0% Environmental issues * – 2014 Competition for Sales 13.7% Aggregates Availability /Permitting 17.7% Regulatory Fines 9.7% Retaining Workers 17.7% Regulatory Compliance 15.3% Water Availability 6.5% Community Relations 4.8% Safety 1.6% Environmental issues * 8.9% 2015 Competition for Sales 15.7% Aggregates Availability /Permitting 20.4% Regulatory Fines 6.5% Retaining Workers 16.7% Regulatory Compliance 15.7% Water Availability 2.8% Community Relations 4.6% Safety 2.8% Environmental issues * 10.2% 2016 Competition for Sales 17.0% Aggregates Availability /Permitting 17.0% Regulatory Fines 5.9% Retaining Workers 19.3% Regulatory Compliance 14.1% Water Availability 5.2% Community Relations 4.4% Safety 3.0% Environmental issues * 7.4% 2017 Competition for Sales 12.8% Aggregates Availability /Permitting 21.4% Regulatory Fines 8.5% Retaining Workers 29.1% Regulatory Compliance 19.7% Water Availability 4.3% Community Relations 6.8% Safety 1.7% Environmental issues * 9.4% Source: Aggregates Manager Forecast Studies *Category added in 2014.