Aggregates Industry Outlook
The February Aggregates Industry Index jumped 7.37 percent from January to 138.89. The increase was reported amid rising diesel fuel prices and falling stock prices during one of the worst weeks on Wall Street in nearly a decade. Despite these factors, monthly survey respondents reported steady results for their outlook on the aggregates market for the year and marked improvements for monthly sales (up nearly 13 percent over the prior month) and for the quarter (up 16.5 percent over January).
We have had a very hard winter. Sales have been down as a result. We are normally down seasonally, but this winter has been particularly harsh. I believe that this coming year’s sales will be as good as 2017 and, perhaps, slightly better.
— Jon Thompson, President, Letart Corp.
We have seen an uptick in southern states’ production of frac sand, asphalt, and concrete stone. (We are) hoping Congress follows through with Trump’s infrastructure bill request to stimulate all quarry and construction segments.
— Jason Hurdis, Senior Market Professional, Caterpillar
Industry outlook for the next year
February responses continued month-over-month gains with a 1.9-percent increase over January reports. They did, however, fall back slightly compared to expectations from a year prior, down 1.1 percent against February 2017.
Company outlook for the next year
Responses were nearly flat against January’s figures (+0.7 percent) for month-to-month comparisons. After an 18.4 percent jump in year-over-year growth in January, February’s annual results fell nearly 2 percent.
Outlook for monthly sales
Monthly sales reports continue to indicate volatility, largely driven by weather impacts in many markets. For February, results were up 12.9 percent compared to a month prior and nearly even with February 2017 results (-0.8 percent).
Outlook for quarterly sales
Quarterly sales expectations showed the most growth of any business category for February, up 16.4 percent over January reports. They were, however, 2.4 percent below February 2017 expectations.
Outlook for sales for the next half
Overall sales expectations for the half are up nearly 10 percent compared to January, but slightly below (-1.4 percent) February 2017 reports.
Outlook for annual sales
Ratings for annual sales expectations regained much of the ground lost in January, up 5.5 percent over last month’s reports. They did, however, show the decline from a year-over-year perspective, down 2.5 percent from February 2017.