August 30, 2017
AggMan understands that the aggregates business is comprised of local businesses throughout the nation. As such, we are focused on providing insights into these local markets, as well as national markets, in print and online.
We contacted Gary Hambly, executive director of the California Construction and Industrial Materials Association (CalCIMA), who was kind enough to give us his accounting of what’s happening with the aggregates industry in the state of California.
1) How would you characterize the state of the aggregates market in California?
Hambly: Industry still hasn’t fully recovered since 2009, but is improving. Residential construction is the lagging sector, as is public investment in infrastructure.
2) How is California addressing transportation funding?
Hambly: Legislature recently passed a gas tax increase which will provide $5.4 billion annually over the next 10 years to fix the transportation system.
3) What are the big opportunities for producers in California (DOT projects, commercial construction, etc.)?
Hambly: See above (transportation system improvements) and a recovering residential market. Also see opportunities in large scale government infrastructure projects like high speed rail and water transfer and storage projects.
4) What are the big obstacles for producers in California (legislation, neighborhood groups, etc.)?
Hambly: Significant improvement in residential construction will require state intervention and incentive’s to overcome neighborhood/local opposition to development.
5) What would you like your peers to know about aggregates production in California?
Hambly: As permitting becomes more difficult and expensive, the market is becoming more dominated by larger producers.