AGGBEAT

March 2007

A United, Stronger Voice

California mining associations merge to form new organization.

by , Senior Editor

The California Construction & Industrial Materials Association (CalCIMA) has been formed to represent the aggregate, mining, and ready-mix concrete industries in California.

The statewide organization, effective as of Jan. 1, merges four of the state’s existing associations. These include the Construction Materials Association of California (CMAC), Southern California Rock Products Association (SCRPA), Southern California Ready Mixed Concrete Association (SCRPA), and the California Mining Association (CMA). CalCIMA has offices located in Sacramento and South Pasadena.

An executive search is currently underway for a CEO for the new organization.

Steve Bledsoe, former head of the Southern California Rock Products Association and current CalCIMA president, says that the members of CalCIMA are the foundation of California’s economy and infrastructure. “The aggregate, ready-mixed concrete, and other construction and industrial materials producers have a tremendous impact of over $230 billion on the California economy,” Bledsoe says in a press release sent to legislators and regulators. “California’s economic future, building and maintenance of infrastructure, and sustainable quality of life all depend on the accessibility and availability of local supplies of high-quality aggregates, ready-mixed concrete, and a long list of construction materials, namely the membership of the new CalCIMA.”

“This has been in the works for a few years,” Ben Licari, vice chair of CalCIMA and director of government affairs for Graniterock Co., tells Aggregates Manager. “The advantage is that we will have a single voice with the legislators and regulators.”

Instead of all having separate lobbyists for different organizations,  one organization could have two to three times the impact, Licari points out. In a trendsetting state like California, having a single, united voice is advantageous.

One of the challenges CalCIMA will face with the new organization is the geographic challenge. California is a big state and covers a lot of latitude so there will be more travel involved for members, Licari says. “When you put everyone in the same pot, we’ll have to use the airlines a little bit more.” However, Licari says that CalCIMA is confident that with technology including e-mail, teleconferencing, and virtual meetings, the challenge won’t be problematic. And, he says, CalCIMA is making sure that all of its members companies, both big and small, are connected. “Our issues are statewide and critical to everyone,” Licari points out. “You want to make sure you represent a bit of the grassroots organization, too.  We are very careful that we don’t put one segment of the industry above the other, such as pushing asphalt over concrete or vice versa. We don’t want to compete with each other but stress the positive aspects of each branch of the industry.”

Licari notes that a great deal of hard work has gone into forming CalCIMA and that it’s “a tremendous accomplishment. We’re excited about the prospects of this organization.” The regulators are looking forward to it, too.”

NSSGA announces award winners

The National Stone, Sand & Gravel Association (NSSGA) has named its Pinnacle, About Face, and Excellence in Community Relations award winners.

All of the award winners will be honored on March 1 at an awards breakfast in conjunction with the NSSGA Annual Convention in San Francisco, Calif.

The About Face Program, created in 1975, is the NSSGA’s oldest awards program. It recognizes and rewards aggregate producers who have made constructive and positive efforts to enhance the aesthetic appearance of their operations.

The Community Relations Program began in 1989 to recognize aggregate producers whose community involvement and support activities have enhanced the public’s perception of the aggregates industry in general and the public image of the individual producer’s aggregate operation in particular. There are several different levels awards including the Pinnacle, Excellence in Community Relations, Certificates of Achievement and the Toast of the Town.

Mergers & Acquisitions

For the first few months of 2007, merger and acquisition activity in the construction materials industry has been slow, and consisting mainly of small, regional bolt-on acquisitions. On Jan. 9, The National Lime & Stone Co. (National) announced the acquisition of the sand and gravel assets (including reserves, related processing plant and equipment, and other undeveloped property) of the J. P. Sand & Gravel Co. Located in Lockbourne, Ohio. The acquired operations will be merged with National’s existing Columbus Region business group, and will further strengthen its position as the largest independently owned aggregates producer in the Ohio market. Transaction terms and conditions were not disclosed.

On Jan. 22, 2007, Rinker Group Ltd. announced the acquisition of Walling Sand & Gravel companies, a leading producer of aggregates in the Salem, Ore., region. In addition to its substantial aggregates business, the acquired company also operates a concrete plant and an asphalt plant and related paving operations. The Walling operations will be added to Rinker’s existing business in the metropolitan Portland, Ore., area. Transaction terms and conditions were not disclosed.

 — by Bill Watkins, managing director, National City Capital Markets. Watkins is a contributing editor and may be reached at 216-222-7134.


Correction

Some of the data included in the January 2007 “Market Situation” report appeared under the wrong heading. A PDF of the corrected version has been posted to the Aggregates Manager Web site at www.aggman.com. Aggregates Manager apologizes for the error.

 

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