Aggregates Manager Digital Magazine
Issue link: http://read.dmtmag.com/i/932759
The January Aggregates Industry Index fell back 3.06 percent from December to 129.35. While respondents were opti- mistic on the industry's annual outlook, monthly sales were a weak point this month. While January is a typically low month — sentiments on monthly sales were down 18.75 percent against De- cember results — they were also down nearly 9 percent versus January 2017. And, while some producers are benefi t- ting from state transportation funding increases, demands for a national plan are becoming a steady drumbeat. Funding to infrastructure — on both the federal and state level — needs to be addressed. — Bill Schmitz, Vice President, Quality Control and Sales, Gernatt Asphalt Products, Inc. It appears fi rst quarter sales in the Northeast will be impacted by a harsher winter than last year. Assuming production can resume on schedule, sales should be brisk in the second quarter and beyond. Hopefully, the federal government can pass a meaningful transportation bill with funding in 2018. — Daryl Zeiner, Sales Manager, The H&K Group Demand fundamentals remain strong in our core regional markets. In 2018 and beyond, each of these regions stands to benefi t from a combination of increased state-level infrastructure investment, stable demand for new single-family homes, and the subsequent buildout of low-rise commercial amenities. — Damian Murphy, Regional President, Summit Materials With signifi cant growth anticipated in the Texas market, as well as geographically South and West, I see great opportunity for expansion in all aspects of the construc- tion market and relative increases in material prices. — Jill Shackelford, President, Jill Shackelford Consulting For the current month, weather conditions (snow amounts and record colds) have slowed production with most customers I work with, but on a temporary basis. My largest 'positive' area is still Texas and frac sand; 22 companies are now all working in the Permian West Texas Basin. — Jason Hurdis, Senior Market Professional, Caterpillar December through February are seasonally slow every year. We expect this to be at least as good as last (year), and possibly better. Indications are that busi- ness is going to be strong in 2018, particularly in the Kentucky market. — 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. 2017 Sept. 2017 Oct. 2017 Nov. 2017 Dec. 2017 Jan. 2018 Jan. 2017 Feb. 2017 March 2017 April 2017 May 2017 June 2017 July 2017 140.38 129.36 135.06 129.35 133.61 134.60 128.38 121.69 133.44 132.37 139.94 139.35 124.24 Value of Construction Put in Place, Adjusted Annual Rate (Millions of dollars. Not all sub-categories of non-residential construction are included.) Source: U.S. Census Bureau CENSUS CONSTRUCTION DATA Type of Construction 11/1/2017 10/1/2017 % change Nov 2017- Oct 2017 % change Nov 2017- Nov 2016 Residential 537,768 531,936 1.1 7.9 Non-residential 719,226 715,141 0.6 -1.3 Offi ce 70,003 66,935 4.6 -4.8 Commercial 88,076 87,034 1.2 7.9 Health Care 41,829 42,028 -0.5 9.5 Educational 99,580 96,504 3.2 8.3 Transportation 46,943 46,981 -0.1 13.9 Power 97,339 97,885 -0.6 -9.7 Highway and Street 88,223 88,911 -0.8 -6.4 Sewage and Waste Disposal 20,866 20,536 1.6 0.0 Manufacturing 60,965 62,107 -1.8 -15.6 AGGREGATES INDUSTRY OUTLOOK