Aggregates Industry Outlook Index
In each month since the November presidential election, the Aggregates Industry Outlook has gained ground. In February, it surged 12.16 percent to an overall score of 139.35, its highest score to date. A single question — regarding the month’s sales from a year-over-year perspective — drew a lower response than those given in January. It fell 0.09 points compared to the last month’s rating, however, it is 0.07 points higher than the rating given in February 2016. All other forward-looking questions drew favorable increases compared to January responses. The highest ratings were returned in response to the industry’s outlook for the next 12 months. That rating was 4.38 on a 5-point system, with a score of 5 indicating a very positive response. It reflects the most optimistic outlook given since we began asking industry leaders for their perspective in 2015.
Comments:
Bidding remains very active and, with the renewed optimism in the economy with regards to the material sector, I anticipate a strong construction season.
—Daryl Zeiner, Sales Manager, The H&K Group
(There is) general market excitement about the direction of the new administration. Oil prices have stabilized, and jobs are coming back to Houston. On the public side, there is a strong backlog of TxDOT and municipal work.
— Rob Van Til, Managing Partner, River Aggregates, LLC
We are hopeful that the bipartisan support for a real infrastructure program proposed by President Trump comes to fruition.
— Bill Schmitz, Vice President, Quality Control and Sales, Gernatt Asphalt Products, Inc.
Crushed stone and sand and gravel companies seem to be optimistic. I think most hope the new administration will provide the real dollars to rebuild the U.S. road system. I know the frac sand industry is going forward with exploration of new deposits, especially in Texas. They are anticipating additional oil and gas drilling in the Permian Basin; and fracking those wells.
— Mark J. Zdunczyk, Consulting Geologist, Mark J. Zdunczyk LLC
The industrial sand and frac market seems to be picking up steam with new locations being evaluating with the increase in oil prices.
—William F. Rapier, Owner, William F. Rapier & Associates
The business climates that I serve, whether it’s aggregate, asphalt, or concrete, are very positive; more positive than they’ve been in the last four to five years.
—Dave Shobe, Regional Sales Manager, Miller Wire Works
Editor’s note: To join our panel, email Editor-in-Chief Therese Dunphy at tdunphy@randallreilly.com.