October 13, 2017
Aggregates Industry Outlook Index
The October Aggregates Industry Index dipped slightly to an overall score of 128.38, a 0.76-percent decrease from September. Respondents reported mixed opinions on the impact of recent hurricanes on the both production and demand with some noting the short-term decrease in demand while others anticipate the gains of a long-term recovery. Minimal changes were reported for most business sentiment indicators, including industry and company outlooks as well as sales for the quarter and half. Monthly sales experienced a slightly more significant decrease with a 7.5-percent decline, compared to September. More optimistic results were reported for annual sales, with a 7.3-percent increase over September results.
Sand and gravel reserves are depleted in the Denver metro area. All demand is being pushed on the crushed stone operation. Rail (is) soon to enter the market.
— Al Frei, Jr., President, Albert Frei and Sons
In our state of Mississippi, our road funding is down almost 30-35 percent. The budget is still shrinking and our lawmakers turn a blind eye to our road system’s decay.
— Tim C. Rakestraw, Area Aggregates Manager, APAC, Inc., an Oldcastle Company
Houston, along with the Gulf Coast Region, is still in recovery mode from Hurricane Harvey. I think it will another three to six months before we can get an accurate read on the direction of the market.
— Rob Van Til, Managing Partner, River Aggregates, LLC
Despite early year impacts due to weather, 2017 is shaping up to be as good as 2016. Anticipation is high that the economy will maintain its course in 2018.
— Daryl Zeiner, Sales Manager, The H&K Group
Given the aftermath of two destructive hurricanes and their relative impact on the Southern United States, I see a spike in aggregate demand and production. Coupled with available funding, I believe produces are in a position to increase inventory that will remain very liquid.
— Jill Shackelford, President, Jill Shackelford ConsultingExploration Services.
In the Southeast, exploration related to potential greenfield sites, along with quarry expansions, is brisk. This being the case, 2017 continues as one of our busiest in the last 40 years.
— O.F. “Russ” Patterson, III, Chief Geologist, Patterson Exploration Services.
Things are very positive in our area with an uptick in greenfield exploration and movement of stone. The tragic hurricanes in Florida and Texas are leading to more rail shipments into those areas as recovery continues. The lack of any significant movement on infrastructure repair and improvement by the Trump Administration is disappointing.
— Bob Fousek, President, FMR
Recent hurricanes in Florida, Gulf, and Texas have cut production needs and reduced operating hours.
— Jason Hurdis, Senior Market Professional, Caterpillar