January 1, 2013
Each year, through our Aggregates Manager Forecast Survey, we ask operators to share information about current business results, as well as predictions for the coming year. We ask a series of questions about production trends, business ratings, and capital expenditure plans.
In terms of iron investments, nearly one in four operators (23.8 percent) told us they expect their capital expenditure budgets to increase in 2013. As a benchmark, the last year a higher number was reported was in 2007, when 31 percent of operators told us they increased spending. But, along with the good, comes the bad, with 26.7 percent of operators expecting to reduce capital purchases this year, nearly 7 percent higher than reports of decreased spending in 2012, but slightly lower than the 29.2 percent who curtailed capital investments in 2011.
From a primary product perspective, crushed stone-only operators are most likely to increase spending, with 33.3 percent planning on boosting budgets. They are followed by sand and gravel-only operators (23.1 percent) and crushed stone and sand and gravel operators (22.5 percent) also anticipating larger capital budgets.
In 2012, operators in the West reported the best overall business results, and it is reflected in their cap ex plans: 40.9 percent expect to increase their budgets. The Northeast (28.6 percent), South (20.0 percent), and North Central (12.0 percent) follow.
To see business ratings and production expectations, be sure to check your January issue or visit the digital edition at www.aggman.com.