Better Roads Digital Magazine
Issue link: https://read.dmtmag.com/i/85902
siness Rating Trends 2011 Production Volumes vs. 2010 Production Volumes al Production Increased: 29.2% Decreased: 29.2% the same: 41.5% Stayed results with nearly six in 10 (58.3 percent) indicating positive business results in 2011, while approximately two- thirds (67.5 percent) of those in the South reported fair or poor results. Small producers (under 500,000 tons per year) were the most likely to indicate positive business results, with the level of optimism diminishing in a direct correlation to increasing tonnage until hitting the large end of the spec- trum with producers of more than 5 million tons per year. This group was slightly more inclined to report favorably, with one in three reporting favorable results, compared to three in four reporting fair or poor business results in the next largest production category (3 to 5 million tons per year). .0 .2 .4 .6 .8 .0 In terms of operators experiencing changes in produc- tion quantities throughout 2011, an equal number said they'd increased and decreased production. It's worth noting that, of those reporting an increase, the average increase was 25 percent higher production. Among those indicating a decrease, the average decrease was 19 percent. The largest gains were had among producers of crushed stone and sand and gravel (30.8 percent reported an increase) and among those in the North Central region (43.5 percent indicated higher production levels). So what's next? While gains appear evident within pockets of the industry, several years of inertia are challenging to reverse. Looking forward in 2012, small improvements are being predicted in most categories. Comparing forecast projections from 2012 to those from 2011, 6.6 percent expect an excellent SPECIAL FROM AGGREGATES MANAGER By Primary BusinessA Randall-Reilly publication By Primary Business 100 80 60 40 20 By Region 0 Crushed Stone & Sand & Gravel Crushed Stone Only Gravel Only Sand & Other 2011 production numbers showed some interesting trends. While half of crushed stone producers experienced an increase in production during 2010, they were the most likely to report decreased production in 2011. Producers of both crushed stone and sand and gravel showed greater stability with 14.4% more of respondents reporting consistent production levels in 2011 (38.5%) as compared to 2010 (24.1%). That same category had 8.1% fewer producers reporting a decrease in production between 2011 (30.8%) and 2010 (38.9%). By Annual Production 100 80 60 40 20 0 Increased Stayed about the same 100 120 Based on size of operation, smaller operations appear to have fared better than their larger counterparts in 2011. Operators in the two smaller categories (under 1 million tons per year) were more likely to report an increase in production than a decrease. Mid-sized operators (1 to 5 million tons per year) were more likely to report decreased production rather than increased. The largest operators (more than 5 million tons per year) straddled the center with an equal number reporting increased and decreased production. 20 40 60 80 0 By Region 100 80 60 40 20 0 Average Increased Decreased Stayed about the same 500,000 tons Under 500,001- 1 million tons 1,000,001 million-3 million tons 3,000,001 million-5 million tons More than 5 million tons Decreased Increased Decreased Stayed about the same Northeast North Central South West increase: 25.0% decrease: 19.0% Source: Aggregates Manager 2012 Forecast Study Average Following a strong year in 2010, operators in the Northeast saw a reversal of fortunes with nearly 42% reporting decreased production in 2011. The South experienced a particularly challenging year in 2010, with more than half of operators (51.3%) reporting decreased production. This year, more than half (53.5%) report stable production, but more than one in three has still seen decreased production. The bright spot appears to be the North Central region, where 43.5% report increased production. Better Roads January 2012 19b