Aggregates Manager Digital Magazine
Issue link: http://read.dmtmag.com/i/917007
14 AGGREGATES MANAGER / January 2018 FORECAST 2018 in 2018. They are followed by the North Central (51.4 percent), South (43.6 per- cent), and West (38.5 percent). Of the four regions, only respondents in the North Central region were more likely to report business ratings in the top categories for 2018 compared to the prior year. The region reported a 22.9-percent increase in strong ratings expectations. All other regions had more restrained expectations for 2018 than during the previous year. 2017 production volumes Nearly one in two respondents reported increased production volumes in 2017, compared to 2016, a 13.2-percent in- crease over 2016's reports. Some respon- dents noted they are running more hours to try to keep stockpiles on the ground. In contrast, 6 percent noted decreased pro- duction in 2017, significantly lower than 17.8 percent who reported decreased volumes in 2016. The average production increase was 16.6 percent — 2.9 percent higher than 2016 — while the average decrease was 20.1 percent — 15 percent lower than in 2016. Across all sizes of operations, produc- tion results were higher. More than half of respondents at operations producing 1 million to 3 million tons (56.6 percent) said they increased production. This size range was followed by respondents at sites with 3 million to 5 million tons (50 percent), up to 500,000 tons (48.1 percent), more than 5 million tons (47.4 percent) and 500,001 to 1 million tons (40 percent). The smallest sites — those producing up to 500,000 tons per year — enjoyed significant growth in 2017. Not only did nearly 20 percent more report increased production than in the prior year, but 31.3 percent noted that produc- tion increased by 30 percent or more. By commodity, respondents at op- erations producing crushed stone and sand and gravel were the most likely to report increased production volumes (61.5 percent), significantly higher than their peers in sand and gravel operations (40 percent) and crushed stone operations (37.4 percent). By region, the South once again was the most likely to enjoy gains in pro- duction volumes. More than half (53.8 percent) reported increased production in 2017. They were followed by the North- east (52.6 percent), West (46.2 percent), and North Central (42.4 percent). In terms of pockets of weakness, one in four respondents at operations with 3 million to 5 million tons per year of pro- duction reported decreased tonnages in 2017. One in 10 sand and gravel produc- ers reported decreased production, while 10.3 percent of respondents in the South reported a decrease. 2018 production forecasts Following widespread production gains in 2017, nearly four in 10 respondents (39.3 percent) expect another year of production growth. With just 3.4 per- cent who anticipate a decrease, stability and growth seems to be the wide-held expectation for 2018. Respondents are bullish on 2018 production predictions, but the optimism diminishes slightly based on operation size. Nearly half (47.4 percent) of respon- dents at sites producing more than 5 mil- lion tons expect growth. Small producers, with less than 500,000 tons per year of production, are somewhat more reserved with 32.7 percent who anticipate an increase in production. By region, the West expects a strong year in 2018, with 46.2 percent of re- spondents who predict higher volumes. They are followed by the North Central (39.4 percent), the Northeast (36.8 per- cent), and the South (35.9 percent). Respondents who predicted an in- crease estimated an average increase of 14.5 percent — virtually unchanged from 2017 predictions. Those who called for a decrease suggested an average decrease of 8.8 percent — 33.8 percent lower than last year's estimate. Tackling challenges While not without its pockets of weak- ness, 2017 was a strong year for the 1.888.862.7461 www. beka-lube.com BEKA - LUBRICATION SPECIALISTS SINCE 1927 For winter weather and high altitudes, you need a BEKA auto-lube system to keep your equipment running smooth. • Cast aluminum base resists hot/cold temperature swings and withstands impacts without leaks • No springs! Eccentric drive gear ensures reliable service in all climates and conditions • Engineered to pump grease down to -13°F/-25°C Find out why industries are choosing BEKA for today's best-built auto-lube systems. Call 1.888.862.7461 or email us at info@beka-lube.com. about cold weather performance by BEKA! GET THE FACTS 026-217D Agg Manager 4.5x4.5 4C.indd 1 2017-12-07 3:57 PM Untitled-2 1 12/11/17 9:43 AM