September 27, 2017
AggMan understands that the aggregates business is made up 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 Pat Jacomet, executive director of the Ohio Aggregates & Industrial Minerals Association (OAIMA), who was kind enough to give us his take on what’s happening with the aggregates industry in the state of Ohio.
1) How would you characterize the state of the aggregates market in Ohio?
Jacomet: The aggregates market in Ohio continues to be strong. For the second year in a row, non-fuel aggregates and industrial minerals values exceeded $1 billion. Tonnage increases for the last two reporting years average about 7.5 percent.
2) How is Ohio addressing transportation funding?
Jacomet: ODOT (Ohio Department of Transportation) has been very proactive in dealing with funding issues and has been innovative with their cost-cutting measures and streamlining of project delivery. ODOT’s construction budget for 2017 is $2.3 billion — 93 percent of this will be spent on preservation of the current road and bridge system, and only 7 percent on enhancing capacity. Like many states, Ohio will need to look at the state user-fee as a way to fill the funding gap needed to upgrade the system and add capacity. Ohio has not raised its user-fee since 2005.
3) What are the big opportunities for producers in Ohio (DOT projects, commercial construction, etc.)?
Jacomet: Opportunities for Ohio’s producers include natural gas pipeline construction and associated support infrastructure, as well as the commercial activity and construction associated with the shale oil and gas plays in eastern Ohio. OAIMA is working with other stakeholders to formulate a funding plan that will maintain our current road and bridge system, while adding capacity and enhancing safety.
4) What are the big obstacles for producers in Ohio (legislation, neighborhood groups, etc.)?
Jacomet: Zoning and land use issues are one of the largest challenges for Ohio operations. Education and outreach efforts help to inform the general population about the important economic and social benefits of having locally available quality aggregate resources.
5) What would you like your peers to know about aggregates production in Ohio?
Jacomet: The aggregate producers of Ohio are working hard to continue to provide affordable, locally available quality aggregate resources for Ohio’s citizens. Each Ohioan, on average, utilizes 10 tons of aggregates produced by OAIMA members each year. OAIMA works closely with all regulatory agencies to ensure our members can continue to provide critical resources in a safe, environmentally friendly and sustainable manner.