By Mark S. Kuhar and Josephine Patterson
This issue of Rock Products features nine regional reports, with information about aggregates production, construction activity, legislative initiatives and manufacturer news.
The information is broken down by region, based on the U.S. Geological Survey’s quarterly reports. The regions are:
- New England (CT, MA, ME, NH, RI, VT).
- Middle Atlantic (NJ, NY, PA).
- East North Central (IL, IN, MI, OH, WI).
- West North Central (IA, KS, MN, MO, NE, ND, SD).
- South Atlantic (DE, FL, GA, MD, NC, SC, VA, WV).
- East South Central (AL, KY, MS, TN).
- West South Central (AR, LA, OK, TX).
- Mountain (AZ, CO, ID, MT, NM, NV, UT, WY).
- Pacific (AK, CA, HI, OR, WA).
For additional guidance on construction activity that impacts aggregates markets, Dodge Data & Analytics just released its 2019 Dodge Construction Outlook, a mainstay in construction industry forecasting and business planning. The report predicts that total U.S. construction starts for 2019 will be $808 billion, staying essentially even with the $807 billion estimated for 2018.
Robert Murray Speaks
“Over the past three years, the expansion for the U.S. construction industry has shown deceleration in its rate of growth, a pattern that typically takes place as an expansion matures,” stated Robert A. Murray, chief economist for Dodge Data & Analytics. “After advancing 11 percent to 14 percent each year from 2012 through 2015, total construction starts climbed 7 percent in both 2016 and 2017, and a 3 percent increase is estimated for 2018. There are, of course, mounting headwinds affecting construction, namely rising interest rates and higher material costs, but for now these have been balanced by the stronger growth for the U.S. economy, some easing of bank lending standards, still healthy market fundamentals for commercial real estate, and greater state financing for school construction and enhanced federal funding for public works.
“An important question going into 2019 is whether deceleration is followed by a period of high level stability or a period of decline,” Murray stated. “For 2019, it’s expected that growth for the U.S. economy won’t be quite as strong as what’s taking place in 2018, as the benefits of tax cuts begin to wane. Short-term interest rates will rise, as the Federal Reserve continues to move monetary policy toward a more neutral stance. Long-term interest rates will also rise, reflecting higher inflationary expectations by the financial markets. At the same time, any erosion in market fundamentals for commercial real estate will stay modest. In addition, the greater funding from state and local bond measures passed in recent years will still be present, and it’s likely that federal spending for construction programs will increase once all the federal appropriations bills for fiscal 2019 are finalized. In this environment, it’s forecast that growth for construction starts will decelerate further, but not yet make the transition to the point where the overall volume of activity declines. For 2019, total construction starts are forecast to hold basically steady at $808 billion. By major sector in dollar terms, residential building will be down 2 percent, nonresidential building will match its 2018 amount, and nonbuilding construction will increase 3 percent.”
The pattern of construction starts by more specific segments is the following:
- Single-family housing will be unchanged in dollar terms, alongside a modest 3 percent drop in housing starts to 815,000 (Dodge basis). There will be a slight decline in homebuyer demand as the result of higher mortgage rates, diminished affordability, and reduced tax advantages for home ownership as the result of tax reform.
- Multifamily housing will slide 6 percent in dollars and 8 percent in units to 465,000 (Dodge basis). Market fundamentals such as occupancies and rent growth had shown modest erosion prior to 2018, which then paused this year due to the stronger U.S. economy. However, that erosion in market fundamentals is expected to resume in 2019.
- Commercial building will retreat 3 percent, following 2 percent gains in 2017 and 2018, as well as the substantial percentage increases that took place earlier. While 2018 market fundamentals for offices and warehouses are healthy, next year vacancy rates are expected to rise as the economy slows, slightly dampening construction. Hotel construction will ease back from recent strength, and store construction will experience further weakness.
- Institutional building will advance 3 percent, picking up the pace slightly from its 1 percent gain in 2018 which itself followed an 18 percent hike in 2017. Educational facilities should see continued growth in 2019, supported by funding coming from numerous school construction bond measures. Healthcare projects will make a partial rebound after pulling back in 2018. Airport terminal and amusement-related projects are expected to stay close to the elevated levels of construction starts reported in 2017 and 2018.
- Manufacturing plant construction will rise 2 percent following the 18 percent jump that’s estimated for 2018. The recent pickup in petrochemical plant projects should continue, and cuts in the corporate tax rate from tax reform should encourage firms to invest more in new plant capacity.
- Public works construction will increase 4 percent, reflecting growth by most of the project types. The omnibus federal appropriations bill passed in March provided greater funding for transportation projects that will carry over into 2019, and environmental-related projects are getting a lift from recently passed legislation.
- Electric utilities/gas plants will drop 3 percent, continuing to retreat after the exceptional amount reported back in 2015. New generating capacity continues to come on line, dampening capacity utilization rates for power generation.
Construction Spending
Construction spending hit a seasonally adjusted annual rate of $1.329 trillion and grew 5.5 percent for nine months of 2018 combined, with continued year-to-date gains for major public and private categories, according to an analysis of new government data by the Associated General Contractors of America. Association officials said that while demand for construction should remain strong for the next several months, the construction sector could be impacted by new trade tariffs, continues workforce shortages and higher interest rates.
“Construction spending has increased among nearly every project type and geographic area this year,” said Ken Simonson, the association’s chief economist. “Despite month-to-month fluctuations, the outlook remains positive for modest to moderate increases in most spending categories at least through the first part of 2019. However, damaging trade policies, labor shortages and rising interest rates pose growing challenges to contractors and their clients.”
Spending year-to-date through the first nine months of 2018 was 7.0 percent higher than in January through September 2017 for public construction and 5.1 percent for private construction, the economist commented. Within private construction, spending for residential projects increased 6.4 percent and 3.5 percent for nonresidential projects.
Major segments continued year-to-date gains, Simonson observed. The largest public categories recorded year-to-date gains of 5.8 percent for highway construction, 2.0 percent for educational construction and 15.8 percent for transportation construction.
Of the three private residential spending categories, single-family homebuilding rose 6.4 percent year-to-date, multifamily was virtually unchanged and improvements to existing buildings climbed 7.1 percent. Among private nonresidential spending segments, the largest – power construction (including oil and gas field and pipeline structures) – edged up 2.3 percent, commercial (retail, warehouse and farm) construction rose 4.8 percent, office construction increased 7.4 percent and manufacturing construction declined 3.4 percent.
Association officials said that overall economic conditions remain positive as the economy continues to benefit from recently enacted tax and regulatory reforms. But they warned that a growing trade dispute with China, shortages of qualified workers and rising interest rates could undermine future demand for construction services. They urged federal officials to resolve trade disputes and boost investments in career and technical education programs.
“Washington has taken a number of positive steps to deliver robust economic growth during the past two years,” said Stephen E. Sandherr, the association’s chief executive officer. “The best thing federal officials can do to maintain current rates of growth is to resolve potentially costly trade disputes and boost investments in workforce development.”
New England
The New England Region Produced 20.7 Million Metric Tons Of Total Aggregates, A 5.1 Percent Year-Over-Year Increase.
The New England region as identified by the U.S. Geological Survey (USGS) consists of Connecticut, Massachusetts, Maine, New Hampshire, Rhode Island and Vermont.
In the second quarter of 2018, the most recent report available from USGS, the New England region produced 20.7 million metric tons (Mt) of total aggregates, a 5.1 percent increase versus the second quarter of 2017.
That followed first-quarter production of 4.7 Mt, a decrease of 8.8 percent versus the first quarter of 2017.
Crushed stone production in the second quarter of 2018 in the New England region was 12.5 Mt, an increase of 9.3 percent versus the second quarter of 2017.
Individual state production of crushed stone in the second quarter of 2018 was:
- Connecticut: 2.7 Mt, a decrease of 4.6 percent versus the second quarter of 2017.
- Massachusetts: 4.8 Mt, an increase of 26.6 percent versus the second quarter of 2017.
- Maine: 1.2 Mt, an increase of 8.5 percent versus the second quarter of 2017.
- New Hampshire: 1.6 Mt, an increase of 27.2 percent versus the second quarter of 2017.
- Rhode Island: 827,000 metric tons, an increase of 17.4 percent versus the second quarter of 2017.
- Vermont: 1.2 Mt, a decrease of 24.6 percent versus the second quarter of 2017.
Sand and gravel production in the second quarter of 2018 in the New England region was 8.1 Mt, a decrease of 0.8 percent versus the second quarter of 2017.
Individual state production of sand and gravel in the second quarter of 2018 was:
- Connecticut: 1.1 Mt, a decrease of 16.6 percent versus the second quarter of 2017.
- Massachusetts: Data unreported for the second quarter of 2018.
- Maine: 2.8 Mt, an increase of 6.2 percent versus the second quarter of 2017.
- New Hampshire: 3.0 Mt, an increase of 29.9 percent versus the second quarter of 2017.
- Rhode Island: 731,000 metric tons, an increase of 18 percent versus the second quarter of 2017.
- Vermont: 1.1 Mt, a decrease of 29.8 percent versus the second quarter of 2017.
Construction Impact
U.S. gross domestic product (GDP) – the value of all goods and services produced in the country – totaled $19.3 trillion. In 2017, construction contributed $826 billion (4.3 percent).
- In Connecticut, construction contributed $8.3 billion (3.2 percent) of the state’s GDP of $261 billion, less than the industry’s 4.3 percent share of U.S. GDP. Construction wages and salaries in 2017 totaled $427 billion in the United States, including $4.0 billion in Connecticut. Nonresidential spending in the United States totaled $714 billion in 2017 ($438 billion private, $277 billion public). Private nonresidential spending in Connecticut totaled $2 billion in 2017. State and local spending totaled $2.4 billion. Nonresidential starts in Connecticut totaled $5.2 billion in 2017 and $3.4 billion in 2016, according to ConstructConnect.
- In Massachusetts, construction contributed $20.5 billion (3.9 percent) of the state’s GDP of $527 billion, less than the industry’s 4.3 percent share of U.S. GDP. Construction wages and salaries in 2017 totaled $427 billion in the United States, including $11.5 billion in Massachusetts. Nonresidential spending in the United States totaled $714 billion in 2017 ($438 billion private, $277 billion public). Private nonresidential spending in Massachusetts totaled $10.6 billion in 2017. State and local spending totaled $5.7 billion. Nonresidential starts in Massachusetts totaled $9.8 billion in 2017 and $9.5 billion in 2016, according to ConstructConnect.
- In Maine, construction contributed $2.4 billion (3.9 percent) of the state’s GDP of $61 billion, less than the industry’s 4.3 percent share of U.S. GDP. Construction wages and salaries in 2017 totaled $427 billion in the United States, including $1.4 billion in Maine. Nonresidential spending in the United States totaled $714 billion in 2017 ($438 billion private, $277 billion public). Private nonresidential spending in Maine totaled $622 million in 2017. State and local spending totaled $398 million. Nonresidential starts in Maine totaled $1.5 billion in 2017 and $1.1 billion in 2016, according to ConstructConnect.
- In New Hampshire, construction contributed $2.7 billion (3.3 percent) of the state’s GDP of $81 billion, less than the industry’s 4.3 percent share of U.S. GDP. Construction wages and salaries in 2017 totaled $427 billion in the United States, including $1.6 billion in New Hampshire. Nonresidential spending in the United States totaled $714 billion in 2017 ($438 billion private, $277 billion public). Private nonresidential spending in New Hampshire totaled $907 million in 2017. State and local spending totaled $880 million. Nonresidential starts in New Hampshire totaled $1.1 billion in 2017 and $1.7 billion in 2016, according to ConstructConnect.
- In Rhode Island, construction contributed $2.3 billion (3.9 percent) of the state’s GDP of $59 billion, less than the industry’s 4.3 percent share of U.S. GDP. Construction wages and salaries in 2017 totaled $427 billion in the United States, including $1.1 billion in Rhode Island. Nonresidential spending in the United States totaled $714 billion in 2017 ($438 billion private, $277 billion public). Private nonresidential spending in Rhode Island totaled $886 million in 2017. State and local spending totaled $488 million. Nonresidential starts in Rhode Island totaled $1.2 billion in 2017 and $0.8 billion in 2016, according to ConstructConnect.
- In Vermont, construction contributed $1.2 billion (3.6 percent) of the state’s GDP of $32 billion, less than the industry’s 4.3 percent share of U.S. GDP. Construction wages and salaries in 2017 totaled $427 billion in the United States, including $761.7 million in Vermont. Nonresidential spending in the United States totaled $714 billion in 2017 ($438 billion private, $277 billion public). Private nonresidential spending in Vermont totaled $639 million in 2017. State and local spending totaled $507 million. Nonresidential starts in Vermont totaled $0.7 billion in 2017 and $0.8 billion in 2016, according to ConstructConnect.
Around the Region
More than 300 Connecticut bridges (20 ft. or longer), carrying 4.3 million vehicles daily, are structurally deficient, according to a new report released by TRIP, a Washington, D.C.-based national transportation research group. A bridge is structurally deficient if there is significant deterioration of the bridge deck, supports or other major components.
In a settlement with the U.S. Environmental Protection Agency, Kimball Sand Co., a sand and gravel company operating in the Massachusetts communities of Blackstone and Northborough, agreed to reduce its emissions of hazardous air pollutants and visible emissions as required by federal clean air laws.
Fourteen percent of bridges statewide and nine percent of bridges in southern Maine are structurally deficient according to a report released by TRIP.
Peckham Industries Inc. has completed the acquisition of Palmer Paving Corp., a heavy highway construction and materials business based in Palmer, Mass. Palmer’s operations, seasoned business management team and more than 150 employees will remain intact and will provide Peckham with expanding business opportunities in the region. Together, the companies will optimize the synergies that exist between them. Privately-held Peckham Industries, Inc., a family operated company since 1924, now employs more than 800 people at more than 25 facilities located in Connecticut, Massachusetts, New York and Vermont.
Sources: U.S. Geological Survey and Associated General Contractors of America.
Middle Atlantic
The Middle Atlantic Region Produced 56.3 Million Metric Tons Of Total Aggregates, A 1.5 Percent Year-Over-Year Increase.
The Middle Atlantic region as identified by the U.S. Geological Survey (USGS) consists of New Jersey, New York and Pennsylvania.
In the second quarter of 2018, the most recent report available from USGS, the Middle Atlantic region produced 56.3 million metric tons (Mt) of total aggregates, a 1.5 percent increase versus the second quarter of 2017.
That followed first-quarter production of just 23.9 million Mt, a decrease of 7.6 percent versus the first quarter of 2017.
Crushed stone production in the second quarter of 2018 in the Middle Atlantic region was 43.3 million Mt, an increase of 4.6 percent versus the second quarter of 2017.
Individual state production of crushed stone in the second quarter of 2018 was:
- New Jersey: 5.2 Mt, an increase of 13.5 percent versus the second quarter of 2017.
- New York: 12.1 Mt, an increase of 5.5 percent versus the second quarter of 2017.
- Pennsylvania: 26 Mt, an increase of 2.5 percent versus the second quarter of 2017.
Sand and gravel production in the second quarter of 2018 in the Middle Atlantic region was 8.1 million Mt, a decrease of 0.8 percent versus the second quarter of 2017.
Individual state production of sand and gravel in the second quarter of 2018 was:
- New Jersey: 2.9 Mt, a decrease of 17.5 percent versus the second quarter of 2017.
- New York: 7.7 Mt, a decrease of 5.8 percent versus the second quarter of 2017.
- Pennsylvania: 23 Mt, an increase of 1.2 percent versus the second quarter of 2017.
Construction Impact
U.S. gross domestic product (GDP) the value of all goods and services produced in the country – totaled $19.3 trillion in 2017; construction contributed $826 billion (4.3 percent).
- In New Jersey, construction contributed $23.7 billion (4.0 percent) of the state’s GDP of $592 billion, less than the industry’s 4.3 percent share of U.S. GDP. Construction wages and salaries in 2017 totaled $427 billion in the United States, including $11.1 billion in New Jersey. Nonresidential spending in the United States totaled $714 billion in 2017 ($438 billion private, $277 billion public). Private nonresidential spending in New Jersey totaled $6.5 billion in 2017. State and local spending totaled $4.8 billion. Nonresidential starts in New Jersey totaled $9.4 billion in 2017 and $9.4 billion in 2016, according to ConstructConnect.
- In New York, construction contributed $49.9 billion (3.2 percent) of the state’s GDP of $1.5 trillion, less than the industry’s 4.3 percent share of U.S. GDP. Construction wages and salaries in 2017 totaled $427 billion in the United States, including $27.6 billion in New York. Nonresidential spending in the United States totaled $714 billion in 2017 ($438 billion private, $277 billion public). Private nonresidential spending in New York totaled $26.9 billion in 2017. State and local spending totaled $20.1 billion. Nonresidential starts in New York totaled $34.4 billion in 2017 and $24 billion in 2016, according to ConstructConnect.
- In Pennsylvania, construction contributed $33.8 billion (4.5 percent) of the state’s GDP of $752 billion, more than the industry’s 4.3 percent share of U.S. GDP. Construction wages and salaries in 2017 totaled $427 billion in the United States, including $16.2 billion in Pennsylvania. Nonresidential spending in the United States totaled $714 billion in 2017 ($438 billion private, $277 billion public). Private nonresidential spending in Pennsylvania totaled $8 billion in 2017. State and local spending totaled $7.4 billion. Nonresidential starts in Pennsylvania totaled $22.7 billion in 2017 and $13.7 billion in 2016, according to ConstructConnect.
Around the Region
A former Braen Stone quarry in Andover, N.J., is about to become the site of the largest glass recycling facility in the world. The 250,000-sq.-ft. processing plant, which Pace Glass is building on the site of an 85-acre former rock quarry on Limecrest Road, will be capable of handling 15,000 tpd of recyclable glass from sorting facilities throughout the Northeast and more than 90 tph.
Key New Jersey construction projects included a $310 million mixed-use complex in Newark; a $258 million mixed-use development in Weehawken; and a $109 million addition to a hospital in Cherry Hill.
Roads and bridges that are deteriorated, congested or lack some desirable safety features cost New York drivers $24.8 billion per year – as much as $2,768 per driver – due to higher vehicle operating costs, traffic crashes and congestion-related delays. The TRIP report, “New York Transportation by the Numbers: Meeting the State’s Need for Safe, Smooth and Efficient Mobility,” finds that throughout the state, nearly half of major locally and state-maintained roads are in poor or mediocre condition and 10 percent of locally and state-maintained bridges (20 feet or longer) are in poor condition. The report also finds that the state’s major urban roads are becoming increasingly congested, causing significant delays and choking commuting and commerce. In addition to the statewide report, TRIP has also produced customized regional reports for the Albany-Schenectady-Troy, Binghamton, Buffalo-Niagara Falls, New York-Newark-Jersey City, Poughkeepsie-Newburgh-Middletown, Rochester, Syracuse and Utica areas. The efficiency and condition of New York’s transportation system, particularly its highways, is critical to the health of the state’s economy.
Large multifamily projects continued in New York, including the $524 million multifamily portion of a $600 million mixed-use building and the $375 million redevelopment of what had previously been a Macy’s garage in Brooklyn, N.Y. Also of note is the $700 million City View Tower at Court Square in Queens, N.Y.; and the $1.8 billion Spiral office tower in the Hudson Yards district.
A citizens group that has opposed the Gibraltar Rock quarry in New Hanover, Pa., since it was first proposed 17 years ago has joined the township’s appeal of a state mining permit granted in July, according to The Mercury. At issue are quarry blasting and groundwater pumping issues. The impact a proposed expansion of the Gibraltar Rock Quarry would have on groundwater pollution at an adjacent lot once owned by Good’s Oil Co. is central to the township’s appeal of the issuing of a state mining permit.
Among the winners of 2018 National Stone, Sand and Gravel Association Environment Excellence Awards was Specialty Granules LLC’s Charmian Plant, Blue Ridge Summit, Pa.
Key Pennsylvania construction projects include a $90 million office building in Allentown; and the $148 million Penn State Health Children’s Hospital in Hershey.
Outgoing House Transportation Committee Chairman Bill Shuster (R-Pa.), received the National Stone, Sand and Gravel Association’s 2018 Rock Star Award for his diligent work to invest in our railways, ports, waterways, aviation network, waterways and America’s infrastructure.
Sources: U.S. Geological Survey and Associated General Contractors of America.
East North Central
The East North Central Region Produced 91.6 Million Metric Tons Of Total Aggregates, A 5.5 Percent Year-Over-Year Increase.
The East North Central region as identified by the U.S. Geological Survey (USGS) consists of Illinois, Indiana, Michigan, Ohio and Wisconsin.
In the second quarter of 2018, the most recent report available from USGS, the East North Central region produced 91.6 million metric tons (Mt) of total aggregates, a 5.5 percent increase versus the second quarter of 2017.
That followed first-quarter production of 38.8 million Mt, a decrease of 2.3 percent versus the first quarter of 2017.
Crushed stone production in the second quarter of 2018 in the East North Central region was 57.8 Mt, an increase of 4 percent versus the first quarter of 2017.
Individual state production of crushed stone in the second quarter of 2018 was:
- Illinois: 14.1 Mt, an increase of 3 percent versus the second quarter of 2017.
- Indiana: 13.3 Mt, an increase of 1.2 percent versus the second quarter of 2017.
- Michigan: 7.1 Mt, a decrease of 4.5 percent versus the second quarter of 2017.
- Ohio: 16.9 Mt, an increase of 11 percent versus the second quarter of 2017.
- Wisconsin: 6.4 Mt, an increase of 5.1 percent versus the second quarter of 2017.
Sand and gravel production in the second quarter of 2018 in the East North Central region was 33.8 Mt, an increase of 8.2 percent versus the first quarter of 2017.
Individual state production of sand and gravel in the second quarter of 2018 was:
- Illinois: 5.5 Mt, an increase of 5.3 percent versus the second quarter of 2017.
- Indiana: 5.0 Mt, an increase of 2.0 percent versus the second quarter of 2017.
- Michigan: 14.2 Mt, an increase of 9.9 percent versus the second quarter of 2017.
- Ohio: 9.0 Mt, an increase of 11.2 percent versus the second quarter of 2017.
- Wisconsin: Data unreported for the second quarter of 2018.
Construction Impact
U.S. gross domestic product (GDP) – value of all goods and services produced in the country – totaled $19.3 trillion in 2017; construction contributed $826 billion (4.3 percent).
- In Illinois, construction contributed $30.8 billion (3.8 percent) of the state’s GDP of $820 billion, less than the industry’s 4.3 percent share of U.S. GDP. Construction wages and salaries in 2017 totaled $427 billion in the United States, including $15.8 billion in Illinois. Nonresidential spending in the United States totaled $714 billion in 2017 ($438 billion private, $277 billion public). Private nonresidential spending in Illinois totaled $8.7 billion in 2017. State and local spending totaled $9.1 billion. Nonresidential starts in Illinois totaled $12.8 billion in 2017 and $13.4 billion in 2016, according to ConstructConnect.
- In Indiana, construction contributed $14.2 billion (4.0 percent) of the state’s GDP of $359 billion, less than the industry’s 4.3 percent share of U.S. GDP. Construction wages and salaries in 2017 totaled $427 billion in the United States, including $8.1 billion in Indiana. Nonresidential spending in the United States totaled $714 billion in 2017 ($438 billion private, $277 billion public). Private nonresidential spending in Indiana totaled $5.7 billion in 2017. State and local spending totaled $4 billion. Nonresidential starts in Indiana totaled $6.5 billion in 2017 and $7.6 billion in 2016, according to ConstructConnect.
- In Ohio, construction contributed $25.6 billion (4.0 percent) of the state’s GDP of $649 billion, less than the industry’s 4.3 percent share of U.S. GDP. Construction wages and salaries in 2017 totaled $436 billion in the United States, including $13.7 billion in Ohio. Nonresidential spending in the United States totaled $714 billion in 2017 ($438 billion private, $277 billion public). Private nonresidential spending in Ohio totaled $8.2 billion in 2017. State and local spending totaled $8.2 billion. Nonresidential starts in Ohio totaled $13.9 billion in 2017 and $13.1 billion in 2016, according to ConstructConnect.
Sources: U.S. Geological Survey and Associated General Contractors of America.
West North Central
The West North Central Region Produced 69.7 Mt Of Total Aggregates, A 5.6 Percent Year-Over-Year Decrease.
The West North Central region as identified by the U.S. Geological Survey (USGS) consists of Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota and South Dakota.
In the second quarter of 2018, the most recent report available from USGS, the West North Central region produced 69.7 million metric tons (Mt) of total aggregates, a 5.6 percent decrease versus the second quarter of 2017.
That followed first-quarter production of 30.7 Mt, a decrease of 8 percent versus the first quarter of 2017.
Crushed stone production in the second quarter of 2018 in the West North Central region was 38.7 Mt, a decrease of 3 percent versus the second quarter of 2017.
Individual state production of crushed stone in the second quarter of 2018 was:
- Iowa: 11.5 Mt, a decrease of 0.4 percent versus the second quarter of 2017.
- Kansas: 4.5 Mt, an increase of 2.1 percent versus the second quarter of 2017.
- Minnesota: 2.2 Mt, a decrease of 2.7 percent versus the second quarter of 2017.
- Missouri: 16.5 Mt, a decrease of 2.2 percent versus the second quarter of 2017.
- Nebraska: 2 Mt, an increase of 1.9 percent versus the second quarter of 2017.
- North Dakota: Data unreported for the second quarter of 2018.
- South Dakota: 1.7 Mt, a decrease of 28.9 percent versus the second quarter of 2017.
Sand and gravel production in the second quarter of 2018 in the West North Central region was 31.1 Mt., a decrease of 8.6 percent versus the second quarter of 2017.
Individual state production of sand and gravel in the second quarter of 2018 was:
- Iowa: 4.1 Mt, a decrease of 10.4 percent versus the second quarter of 2017.
- Kansas: 3.1 Mt, an increase of 23.3 percent versus the second quarter of 2017.
- Minnesota: 11 Mt, a decrease of 22 percent versus the second quarter of 2017.
- Missouri: 2.2 Mt, a decrease of 7.5 percent versus the second quarter of 2017.
- Nebraska: 3.6 Mt, an increase of 5.6 percent versus the second quarter of 2017.
- North Dakota: 4.35 Mt, an increase of 45.2 percent versus the second quarter of 2017.
- South Dakota: 2.52 Mt, a decrease of 33.4 percent versus the second quarter of 2017.
Construction Impact
U.S. gross domestic product (GDP) – the value of all goods and services produced in the country – totaled $19.3 trillion in 2017; construction contributed $826 billion (4.3 percent).
- In Iowa, construction contributed $7.9 billion (4.2 percent) of the state’s GDP of $190 billion, less than the industry’s 4.3 percent share of U.S. GDP. Construction wages and salaries in 2017 totaled $427 billion in the United States, including $4.2 billion in Iowa. Nonresidential spending in the United States totaled $714 billion in 2017 ($438 billion private, $277 billion public). Private nonresidential spending in Iowa totaled $4.8 billion in 2017. State and local spending totaled $3.4 billion. Nonresidential starts in Iowa totaled $5.3 billion in 2017 and $5.1 billion in 2016, according to ConstructConnect.
- In Kansas, construction contributed $6.1 billion (3.9 percent) of the state’s GDP of $158 billion, less than the industry’s 4.3 percent share of U.S. GDP. Construction wages and salaries in 2017 totaled $427 billion in the United States, including $3.3 billion in Kansas. Nonresidential spending in the United States totaled $714 billion in 2017 ($438 billion private, $277 billion public). Private nonresidential spending in Kansas totaled $3 billion in 2017. State and local spending totaled $2.2 billion. Nonresidential starts in Kansas totaled $3.7 billion in 2017 and $4 billion in 2016, according to ConstructConnect.
- In Minnesota, construction contributed $15 billion (4.3 percent) of the state’s GDP of $351 billion, the same as the industry’s 4.3 percent share of U.S. GDP. Construction wages and salaries in 2017 totaled $427 billion in the United States, including $7.9 billion in Minnesota. Nonresidential spending in the United States totaled $714 billion in 2017 ($438 billion private, $277 billion public). Private nonresidential spending in Minnesota totaled $4.4 billion in 2017. State and local spending totaled $6.5 billion. Nonresidential starts in Minnesota totaled $8.4 billion in 2017 and $7.8 billion in 2016, according to ConstructConnect.
- In Missouri, construction contributed $11.4 billion (3.7 percent) of the state’s GDP of $305 billion, less than the industry’s 4.3 percent share of U.S. GDP. Construction wages and salaries in 2017 totaled $427 billion in the United States, including $7.2 billion in Missouri. Nonresidential spending in the United States. totaled $714 billion in 2017 ($438 billion private, $277 billion public). Private nonresidential spending in Missouri totaled $5.2 billion in 2017. State and local spending totaled $3.8 billion. Nonresidential starts in Missouri totaled $7.6 billion in 2017 and $7.8 billion in 2016, according to ConstructConnect.
- In Nebraska, construction contributed $4.1 billion (3.4 percent) of the state’s GDP of $122 billion, less than the industry’s 4.3 percent share of U.S. GDP. Construction wages and salaries in 2017 totaled $427 billion in the United States, including $2.6 billion in Nebraska. Nonresidential spending in the United States totaled $714 billion in 2017 ($438 billion private, $277 billion public). Private nonresidential spending in Nebraska totaled $2.1 billion in 2017. State and local spending totaled $1.8 billion. Nonresidential starts in Nebraska totaled $3.3 billion in 2017 and $2.9 billion in 2016, according to ConstructConnect.
- In North Dakota, construction contributed $3.6 billion (6.6 percent) of the state’s GDP of $55 billion, more than the industry’s 4.3 percent share of U.S. GDP. Construction wages and salaries in 2017 totaled $427 billion in the United States, including $1.7 billion in North Dakota. Nonresidential spending in the United States totaled $714 billion in 2017 ($438 billion private, $277 billion public). Private nonresidential spending in North Dakota totaled $1.6 billion in 2017. State and local spending totaled $2.2 billion. Nonresidential starts in North Dakota totaled $1.7 billion in 2017 and $2.3 billion in 2016, according to ConstructConnect.
- In South Dakota, construction contributed $2.1 billion (4.1 percent) of the state’s GDP of $50 billion, less than the industry’s 4.3 percent share of U.S. GDP. Construction wages and salaries in 2017 totaled $427 billion in the United States, including $1.1 billion in South Dakota. Nonresidential spending in the United States totaled $714 billion in 2017 ($438 billion private, $277 billion public). Private nonresidential spending in South Dakota totaled $1.4 billion in 2017. State and local spending totaled $1.2 billion. Nonresidential starts in South Dakota totaled $2.2 billion in 2017 and $1.4 billion in 2016, according to ConstructConnect.
Around the Region
MDU Resources Group Inc. acquired Sweetman Construction Co., a premier provider of aggregates, asphalt and ready mixed concrete in the Sioux Falls, S.D., market. Sweetman, which does business as Concrete Materials Co., will become part of Knife River Corp., the construction materials subsidiary of MDU Resources. Financial details of the acquisition were not disclosed. MDU Resources anticipates the acquisition will be accretive to earnings per share.
Earlier this year, Minnesota Sands LLC filed a lawsuit to challenge the Winona County, Minn., ban on the mining of sand for use in the energy industry. The ban was passed by the Winona County board of commissioners in November 2016 and prohibits the mining, processing, or trans-loading of frac sand in rural Winona County.
Roads and bridges that are deteriorated, congested or lack some desirable safety features cost Missouri motorists a total of $7.8 billion statewide annually – as much as $2,0311 per driver – due to higher vehicle operating costs, traffic crashes and congestion-related delays. The TRIP report, “Missouri Transportation by the Numbers: Meeting the State’s Need for Safe, Smooth and Efficient Mobility,” finds that throughout Missouri, one-half of major locally and state-maintained roads are in poor or mediocre condition and 13 percent of locally and state-maintained bridges are structurally deficient. The report also finds that traffic congestion throughout Missouri is worsening, causing up to 45 annual hours of delay for drivers in the largest urban area and costing the state’s drivers $2.4 billion each year in lost time and wasted fuel. The TRIP report calculates the cost to motorists of insufficient roads in the Columbia-Jefferson City, Kansas City, St. Louis and Springfield areas.
Sources: U.S. Geological Survey and Associated General Contractors of America.
South Atlantic
The South Atlantic Region Produced 107 Mt Of Total Aggregates, A 9.6 Percent Year-Over-Year Increase.
The South Atlantic region as identified by the U.S. Geological Survey (USGS) consists of Delaware, Florida, Georgia, Maryland, North Carolina, South Carolina, Virginia and West Virginia.
In the second quarter of 2018, the most recent report available from USGS, the South Atlantic region produced 107 million metric tons (Mt) of total aggregates, a 9.62 percent increase versus the second quarter of 2017.
That followed first-quarter production of 80 Mt, an increase of 3.5 percent versus the first quarter of 2017.
Crushed stone production in the second quarter of 2018 in the South Atlantic region was 88.9 Mt, an increase of 8.8 percent versus the second quarter of 2017.
Individual state production of crushed stone in the second quarter of 2018 was:
- Delaware: Withheld to avoid disclosing company proprietary data.
- Florida: 20.9 Mt, an increase of 2.6 percent versus the second quarter of 2017.
- Georgia: 14.9 Mt, an increase of 12.6 percent versus the second quarter of 2017.
- Maryland: 7.3 Mt, an increase of 4.7 percent versus the second quarter of 2017.
- North Carolina: 17.6 Mt, an increase of 14.2 percent versus the second quarter of 2017.
- South Carolina: 7.9 Mt, an increase of 6.3 percent versus the second quarter of 2017.
- Virginia: 15 Mt, an increase of 2.4 percent versus the second quarter of 2017.
- West Virginia: 5.1 Mt, an increase of 28.9 percent versus the second quarter of 2017.
Sand and gravel production in the second quarter of 2018 in the South Atlantic region was 18.5 Mt, an increase of 13.5 percent versus the second quarter of 2017.
Individual state production of sand and gravel in the second quarter of 2018 was:
- Delaware: 1.1 Mt, a decrease of 47.7 percent versus the second quarter of 2017.
- Florida: 6.4 Mt, an increase of 22.7 percent versus the second quarter of 2017.
- Georgia: 1.5 Mt, a decrease of 9.4 percent versus the second quarter of 2017.
- Maryland: 1.9 Mt, a decrease of 4.8 percent versus the second quarter of 2017.
- North Carolina: 2.8 Mt, an increase of 19.2 percent versus the second quarter of 2017.
- South Carolina: 2.7 Mt, an increase of 22 percent versus the second quarter of 2017.
- Virginia: 2.0 Mt, a decrease of 2.3 percent versus the second quarter of 2017.
- West Virginia: Data unreported for the second quarter of 2018.
Construction Impact
U.S. gross domestic product (GDP) – the value of all goods and services produced in the country – totaled $19.3 trillion in 2017; construction contributed $826 billion (4.3 percent).
- In Delaware, construction contributed $2.8 billion (3.8 percent) of the state’s GDP of $74 billion, less than the industry’s 4.3 percent share of U.S. GDP. Construction wages and salaries in 2017 totaled $427 billion in the United States, including $1.3 billion in Delaware. Nonresidential spending in the United States totaled $714 billion in 2017 ($438 billion private, $277 billion public). Private nonresidential spending in Delaware totaled $822 million in 2017. State and local spending totaled $884 million. Nonresidential starts in Delaware totaled $1.4 billion in 2017 and $1 billion in 2016, according to ConstructConnect.
- In Florida, construction contributed $51.7 billion (5.3 percent) of the state’s GDP of $967 billion, more than the industry’s 4.3 percent share of U.S. GDP. Construction wages and salaries in 2017 totaled $436 billion in the United States, including $25.9 billion in Florida. Nonresidential spending in the United States totaled $714 billion in 2017 ($438 billion private, $277 billion public). Private nonresidential spending in Florida totaled $16.5 billion in 2017. State and local spending totaled $12.7 billion. Nonresidential starts in Florida totaled $29.1 billion in 2017 and $24.9 billion in 2016, according to ConstructConnect.
- In Georgia, construction contributed $23.4 billion (4.2 percent) of the state’s GDP of $554 billion, less than the industry’s 4.3 percent share of U.S. GDP. Construction wages and salaries in 2017 totaled $436 billion in the United States, including $11.1 billion in Georgia. Nonresidential spending in the United States totaled $714 billion in 2017 ($438 billion private, $277 billion public). Private nonresidential spending in Georgia totaled $9.1 billion in 2017. State and local spending totaled $6.2 billion. Nonresidential starts in Georgia totaled $12.1 billion in 2017 and $14.8 billion in 2016, according to ConstructConnect.
- In Maryland, construction contributed $18.7 billion (4.7 percent) of the state’s GDP of $394 billion, more than the industry’s 4.3 percent share of U.S. GDP. Construction wages and salaries in 2017 totaled $427 billion in the United States, including $10.8 billion in Maryland. Nonresidential spending in the United States totaled $714 billion in 2017 ($438 billion private, $277 billion public). Private nonresidential spending in Maryland totaled $3.4 billion in 2017. State and local spending totaled $5.3 billion. Nonresidential starts in Maryland totaled $6.6 billion in 2017 and $10.5 billion in 2016, according to ConstructConnect.
- In North Carolina, construction contributed $20.8 billion (3.9 percent) of the state’s GDP of $538 billion, less than the industry’s 4.3 percent share of U.S. GDP. Construction wages and salaries in 2017 totaled $427 billion in the United States, including $11.1 billion in North Carolina. Nonresidential spending in the United States totaled $714 billion in 2017 ($438 billion private, $277 billion public). Private nonresidential spending in North Carolina totaled $9.3 billion in 2017. State and local spending totaled $6.2 billion. Nonresidential starts in North Carolina totaled $14 billion in 2017 and $14.1 billion in 2016, according to ConstructConnect
- In South Carolina, construction contributed $11.8 billion (5.4 percent) of the state’s GDP of $219 billion, more than the industry’s 4.3 percent share of U.S. GDP. Construction wages and salaries in 2017 totaled $427 billion in the United States, including $5.5 billion in South Carolina. Nonresidential spending in the United States totaled $714 billion in 2017 ($438 billion private, $277 billion public). Private nonresidential spending in South Carolina totaled $5.4 billion in 2017. State and local spending totaled $4.7 billion. Nonresidential starts in South Carolina totaled $7.5 billion in 2017 and $6.9 billion in 2016, according to ConstructConnect
- In Virginia, construction contributed $21.9 billion (4.3 percent) of the state’s GDP of $509 billion, the same as the industry’s 4.3 percent share of U.S. GDP. Construction wages and salaries in 2017 totaled $427 billion in the United States, including $11.1 billion in Virginia. Nonresidential spending in the U.S. totaled $714 billion in 2017 ($438 billion private, $277 billion public). Private nonresidential spending in Virginia totaled $6.9 billion in 2017. State and local spending totaled $5.9 billion. Nonresidential starts in Virginia totaled $11.7 billion in 2017 and $10.8 billion in 2016, according to ConstructConnect.
- In West Virginia, construction contributed $4.1 billion (5.3 percent) of the state’s GDP of $77 billion, more than the industry’s 4.3 percent share of U.S. GDP. Construction wages and salaries in 2017 totaled $427 billion in the United States, including $1.8 billion in West Virginia. Nonresidential spending in the U.S. totaled $714 billion in 2017 ($438 billion private, $277 billion public). Private nonresidential spending in West Virginia totaled $270 million in 2017. State and local spending totaled $1.4 billion. Nonresidential starts in West Virginia totaled $1.4 billion in 2017 and $1.2 billion.
Around the Region
The team at the Vulcan Materials Co.’s Grandin Sand Plant in Melrose, Fla., earned Wildlife Habitat Council (WHC) Conservation Certification for its commitment to managing a 14.4-acre on-site rookery. The facility is one of 44 WHC-certified Vulcan sites.
In July, National Stone, Sand and Gravel Association (NSSGA) members Vulcan Materials and CRH Americas joined U.S. Secretary of Transportation Elaine Chao in Georgia at an event planned by the Georgia Transportation Alliance (GTA) to celebrate a $184 million grant that will go toward construction along Interstate 284.
Eighteen percent of North Carolina’s major locally and state-maintained urban roads and highways have pavements in poor condition and 26 percent are rated in mediocre condition, according to a TRIP report. Twenty-two percent of the state’s major urban roads are rated in fair condition and the remaining 34 percent are rated in good condition.
Sources: U.S. Geological Survey and Associated General Contractors of America.
East South Central
The East South Central Region Produced 46.8 Mt Of Total Aggregates, A 3.9 Percent Year-Over-Year Increase.
The East South Central region as identified by the U.S. Geological Survey (USGS) consists of Alabama, Kentucky, Mississippi and Tennessee.
In the second quarter of 2018, the most recent report available from USGS, the East South Central region produced 46.5 million metric tons (Mt) of total aggregates, a 11.6 percent increase versus the second quarter of 2017.
That followed first-quarter production of 29.3 Mt, a 4.3 percent decrease versus the first quarter of 2017.
Crushed stone production in the second quarter of 2018 in the East South Central region was 38.3 Mt, an increase of 11 percent versus the second quarter of 2017.
Individual state production of crushed stone in the second quarter of 2018 was:
- Alabama: 10.4 Mt, an increase of 16.9 percent versus the second quarter of 2017.
- Kentucky: 13.1 Mt, an increase of 1.3 percent versus the second quarter of 2017.
- Mississippi: 660,000 metric tons, an increase of 18.8 percent versus the second quarter of 2017.
- Tennessee: 14.2 Mt, an increase of 16.7 percent versus the second quarter of 2017.
Sand and gravel production in the second quarter of 2018 in the East South Central region was 8.2 Mt, an increase of 14.5 percent versus the second quarter of 2017.
Individual state production of sand and gravel in the second quarter of 2018 was:
- Alabama: State not included in quarterly survey.
- Kentucky: 2.6 Mt, an increase of 16 percent versus the second quarter of 2017.
- Mississippi: 3.2 Mt, an increase of 12.5 percent versus the second quarter of 2017.
- Tennessee: 2.3 Mt, an increase of 15.8 percent versus the second quarter of 2017.
Construction Impact
U.S. gross domestic product (GDP) – the value of all goods and services produced in the country – totaled $19.3 trillion in 2017; construction contributed $826 billion (4.3 percent).
- In Alabama, construction contributed $7.9 billion (3.7 percent) of the state’s GDP of $211 billion, less than the industry’s 4.3 percent share of U.S. GDP. Construction wages and salaries in 2017 totaled $427 billion in the United States, including $4.5 billion in Alabama. Nonresidential spending in the United States totaled $714 billion in 2017 ($438 billion private, $277 billion public). Private nonresidential spending in Alabama totaled $2.8 billion in 2017. State and local spending totaled $2.8 billion. Nonresidential starts in Alabama totaled $5.2 billion in 2017 and $5 billion in 2016, according to ConstructConnect.
- In Kentucky, construction contributed $8.8 billion (4.3 percent) of the state’s GDP of $203 billion, the same as the industry’s 4.3 percent share of U.S. GDP. Construction wages and salaries in 2017 totaled $436 billion in the United States, including $4.2 billion in Kentucky. Nonresidential spending in the United States totaled $714 billion in 2017 ($438 billion private, $277 billion public). Private nonresidential spending in Kentucky totaled $4.2 billion in 2017. State and local spending totaled $3.5 billion. Nonresidential starts in Kentucky totaled $4.1 billion in 2017 and $7 billion in 2016, according to ConstructConnect.
- In Mississippi, construction contributed $4.5 billion (4.1 percent) of the state’s GDP of $112 billion, less than the industry’s 4.3 percent share of U.S. GDP. Construction wages and salaries in 2017 totaled $427 billion in the United States, including $2.2 billion in Mississippi. Nonresidential spending in the United States totaled $714 billion in 2017 ($438 billion private, $277 billion public). Private nonresidential spending in Mississippi totaled $677 million in 2017. State and local spending totaled $2.3 billion. Nonresidential starts in Mississippi totaled $2.4 billion in 2017 and $2.9 billion in 2016, according to ConstructConnect.
- In Tennessee, construction contributed $13.7 billion (4.0 percent) of the state’s GDP of $345 billion, less than the industry’s 4.3 percent share of U.S. GDP. Construction wages and salaries in 2017 totaled $427 billion in the United States, including $6.8 billion in Tennessee. Nonresidential spending in the United States totaled $714 billion in 2017 ($438 billion private, $277 billion public). Private nonresidential spending in Tennessee totaled $5.7 billion in 2017. State and local spending totaled $3.4 billion. Nonresidential starts in Tennessee totaled $7 billion in 2017 and $8 billion in 2016, according to ConstructConnect.
Around the Region
Birmingham, Ala.-based Vulcan Materials Co. announced results for the third quarter ended Sept. 30, 2018. Third quarter earnings from continuing operations were $180 million, or $1.34 per diluted share. Net earnings increased 65 percent to $179 million and Adjusted EBITDA increased 13 percent from the prior year’s third quarter to $353 million. Third quarter aggregates shipments increased 10 percent (6 percent on a same-store basis) versus the prior-year quarter. Shipments in most markets outside those impacted by severe weather realized solid growth versus the prior year. Shipment growth in North Carolina and Virginia was interrupted due to the impact of Hurricane Florence and same-store shipment growth in most Texas markets was limited due to extremely wet weather in September.
Earlier this year, Vulcan Materials, through its subsidiaries, acquired all businesses of McCartney Construction, including several quarry operations in Alabama. McCartney Construction Co. Inc., Calhoun Asphalt Co. Inc. and McCartney Construction Co. LLC.are now subsidiaries of Vulcan, and will continue conducting business under such legal entities.
Vulcan Materials also named Suzanne H. Wood as senior vice president and chief financial officer, effective Sept. 1, 2018. Wood succeeded John R. McPherson, previously executive vice president, chief financial and strategy officer.
In legislative meetings in Kentucky, the need for increased investment in infrastructure were highlighted by leaders in the business community as subjects that should be tackled in the coming legislative session. Ahead of the 2019 session where infrastructure funding is expected to be a big issue for the General Assembly, representatives from the business community from across the state explained to lawmakers that business and industry is in strong support of significant infrastructure investment. Kentucky Chamber Vice President of Policy Development Kate Shanks told legislators $500 billion worth of goods are transported to, from, and through Kentucky each year noting that transportation investment is critical to the economy
Dodge Analytics reported the April construction start of a $682 million tire manufacturing plant in Clinton, Miss., as well as the July construction starts of a $750 million Facebook data center in Huntsville, Ala., and a $600 million Google data center in Stevenson, Ala.
CASE Construction Equipment announced that dealer Lee Tractor Co. Inc. expanded its Mississippi coverage with a new location in Pearl, Miss., to serve the Jackson market.
A spinoff of assets outside Trinity Industries core Rail and Railcar Leasing and Management Services businesses has created Arcosa Inc., a separate publicly traded company reporting 2017 sales of $1.5 billion across three groups: Construction Products, with 11 sand and gravel operations (Texas, Louisiana) and eight expanded shale and clay plants (Alabama, Arkansas, California, Colorado, Indiana, Kentucky, Louisiana, Texas), plus Energy Equipment and Transportation. Of 2017 Arcosa financials, Construction Products accounted for $259 million, or 18 percent of sales, and $54 million, or 41 percent of $132 million in operating profit. The sand and gravel and lightweight aggregate production portfolio includes legacy Trinity Industries plants, along with sites previously under Oldcastle Architectural/Big River and Texas Industries.
Seventeen Tennessee quarries sold by Vulcan Materials to satisfy federal regulators are now part of Blue Water Industries. The $290 million sale, which closed in December 2017, completed Vulcan’s acquisition of Alabama-based Aggregates USA. Blue Water Industries is an aggregates producer serving the southeastern United States, including Florida, Tennessee and Virginia.
Metso announced Stowers Machinery Corp. as its newest dealer. Stowers will offer Metso’s mobile and stationary crushing and screening products to eastern Tennessee contractors in the construction, recycling and demolitio markets. Headquartered in Knoxville, Tenn., Stowers has six store locations throughout the eastern part of the state.
Mack Trucks named Tri-State Truck Center of Memphis, Tenn., its 2017 North American Dealer of the Year. Tri-State Truck Center achieved 185 percent of its sales goal and 127 percent of its leasing plan in 2017.
Sources: U.S. Geological Survey and Associated General Contractors of America.
West South Central
The West South Central Region Produced 100 Mt Of Total Aggregates, A 9.6 Percent Year-Over-Year Increase.
The West South Central region as identified by the U.S. Geological Survey (USGS) consists of Arkansas, Louisiana, Oklahoma and Texas.
In the second quarter of 2018, the most recent report available from USGS, the West South Central region produced 100 million metric tons (Mt) of total aggregates, a 9.6 percent increase versus the second quarter of 2017.
That followed first-quarter production of 84.7 Mt, an increase of 1 percent versus the first quarter of 2017.
Crushed stone production in the second quarter of 2018 in the West South Central region was 65.5 Mt, an increase of 7.1 percent versus the second quarter of 2017.
Individual state production of crushed stone in the second quarter of 2018 was:
- Arkansas: 7.3 Mt, a decrease of 6.1 percent versus the second quarter of 2017.
- Louisiana: Withheld to avoid disclosing company proprietary data.
- Oklahoma: 9.8 Mt, an increase of 6.3 percent versus the second quarter of 2017.
- Texas: 47.6 Mt, an increase of 9.9 percent versus the second quarter of 2017.
Sand and gravel production in the second quarter of 2018 in the West South Central region was 34.8 Mt, an increase of 14.5 percent versus the second quarter of 2017.
Individual state production of sand and gravel in the second quarter of 2018 was:
- Arkansas: 1.9 Mt, an increase of 0.9 percent versus the second quarter of 2017.
- Louisiana: 3.8 Mt, an increase of 7.1 percent versus the second quarter of 2017.
- Oklahoma: 2.6 Mt, an increase of 4.1 percent versus the second quarter of 2017.
- Texas: 26.3 Mt, an increase of 18 percent versus the second quarter of 2017.
Construction Impact
U.S. gross domestic product (GDP) – the value of all goods and services produced in the country – totaled $19.3 trillion in 2017; construction contributed $826 billion (4.3 percent).
- In Arkansas, construction contributed $4.9 billion (3.9 percent) of the state’s GDP of $125 billion, less than the industry’s 4.3 percent share of U.S. GDP. Construction wages and salaries in 2017 totaled $427 billion in the United States, including $2.5 billion in Arkansas. Nonresidential spending in the United States totaled $714 billion in 2017 ($438 billion private, $277 billion public). Private nonresidential spending in Arkansas totaled $2 billion in 2017. State and local spending totaled $2.4 billion. Nonresidential starts in Arkansas totaled $2.8 billion in 2017 and $3.6 billion in 2016, according to ConstructConnect.
- In Louisiana, construction contributed $13.8 billion (5.6 percent) of the state’s GDP of $246 billion, more than the industry’s 4.3 percent share of U.S. GDP. Construction wages and salaries in 2017 totaled $427 billion in the United States, including $9.3 billion in Louisiana. Nonresidential spending in the United States totaled $714 billion in 2017 ($438 billion private, $277 billion public). Private nonresidential spending in Louisiana totaled $14.5 billion in 2017. State and local spending totaled $3.9 billion. Nonresidential starts in Louisiana totaled $6 billion in 2017 and $7.4 billion in 2016, according to ConstructConnect.
- In Oklahoma, construction contributed $7.7 billion (4.1 percent) of the state’s GDP of $189 billion, less than the industry’s 4.3 percent share of U.S. GDP. Construction wages and salaries in 2017 totaled $427 billion in the United States, including $4.0 billion in Oklahoma. Nonresidential spending in the United States totaled $714 billion in 2017 ($438 billion private, $277 billion public). Private nonresidential spending in Oklahoma totaled $3.7 billion in 2017. State and local spending totaled $3.9 billion. Nonresidential starts in Oklahoma totaled $6.2 billion in 2017 and $5.2 billion in 2016, according to ConstructConnect.
- In Texas, construction contributed $92.8 billion (5.5 percent) of the state’s GDP of $1.7 trillion, more than the industry’s 4.3 percent share of U.S. GDP. Construction wages and salaries in 2017 totaled $427 billion in the United States, including $45.3 billion in Texas. Nonresidential spending in the United States totaled $714 billion in 2017 ($438 billion private, $277 billion public). Private nonresidential spending in Texas totaled $44.7 billion in 2017. State and local spending totaled $30.8 billion. Nonresidential starts in Texas totaled $57 billion in 2017 and $50.9 billion in 2016, according to ConstructConnect.
Around the Region
Select Sands Corp. announced in October that it placed 26 employees at its Arkansas operations on temporary furlough until further notice. This necessary step resulted from the current industry-wide market disruption, which impacted demand for Select Sands’ Northern White frac sand. Shipments and limited production continue, while the company continues to pursue additional opportunities.
Select Sands Corp. also announced as part of its plans to improve logistics and create better efficiencies, the company completed a new private road to gain direct access to a recently rebuilt Federal Highway from its producing Sandtown Quarry in Arkansas. Zig Vitols, president and CEO of Selects Sands said, “We continue to see strong demand for our Northern White frac sand product due to its premium quality and the strategic location of our operations relatively close to some of the most prolific producing oil and gas basins in the U.S. Building this road is another step in being more effective and efficient at meeting demand.”
Gen6 Proppants, a frac sand solutions provider, revealed its plans to develop a new frac sand mine to serve the Haynesville Shale region, with the acquisition of approximately 1,000 acres in Red River Parish in northern Louisiana. Permitting and procurement has begun on the new Louisiana mine and construction is expected to begin this year. Once fully commissioned, the mine is expected to produce 1.5 million tpy of frac sand.
Shale Support, a leading provider of frac sand and logistical solutions to the oil and gas proppant market, announced it has closed on a deal purchasing two natural mines in Kinder and Central Louisiana. This expansion adds 2 million tons of nameplate capacity to Shale Support, increasing the organization’s total capacity to 5 million tons annually.
Vista Proppants and Logistics LLC announced the development of a 1- to 1.5-million-tpy frac sand mine northeast of Fay, Okla., to serve customers primarily operating in the Mid-Continent region’s SCOOP and STACK oil and gas plays. The company has completed the purchase of the 1,150-acre site, which is located on Highway 33 and has ready access to water, electricity and natural gas. Vista recently filed permit applications and will begin construction following permit approval.
Preferred Proppants LLC announced that construction is underway on an in-basin frac sand mine and facility in Oakwood, Okla. Conveniently straddling Dewey and Blaine Counties, the facility will be located within five miles of two currently active rigs and within 75 miles of most major activity in the region.
Cemex marked the 50th anniversary of its Balcones Quarry in New Braunfels, Texas, holding an event to celebrate the facility’s milestone while looking toward the operation’s future. Employees, including Cemex USA Regional President – Texas and New Mexico Region Joel Galassini, attended the celebration, which included a planned quarry blast.
Atlas Sand Co. LLC announced the grand opening of its Monahans, Texas, facility. On Oct. 30, the first scheduled deliveries of frac sand from the Atlas Monahans site were fulfilled. The Monahans facility’s anticipated production capacity is currently approximately 4 million tpy, and management expected the facility to reach this production rate within the first six weeks.
Badger Mining Corp. (BMC) sent out the first truckloads of sand from its new sand mining facility located eight miles north of Kermit, Texas. Less than nine months after breaking ground on its 1,280-acre property on Texas Highway 18, production and loadout shipments have commenced with the target to be at total capacity by early next year.
Cemex USA acquired a Blue Star Materials II aggregates operation in Chico, Texas, positioning the company for expansion in the Dallas-Fort Worth area. The 122-acre site and quarry plant is about 45 miles northwest of Fort Worth in Wise County and has more than 25 years of limestone reserves. The plant will supply aggregates for roads, bridges, commercial buildings, housing and other developments in the north Texas area.
Sources: U.S. Geological Survey and Associated General Contractors of America.
Mountain
The Mountain Region Produced 73.2 Mt Of Total Aggregates, A 9.2 Percent Year-Over-Year Increase.
The Mountain region as identified by the U.S. Geological Survey (USGS) consists of Arizona, Colorado, Idaho, Montana, New Mexico, Nevada, Utah and Wyoming.
In the second quarter of 2018, the most recent report available from USGS, the Mountain region produced 73.2 million metric tons (Mt) of total aggregates, a 9.2 percent increase versus the second quarter of 2017.
That followed first-quarter production of 46.6 Mt, an increase of 12 percent versus the first quarter of 2017.
Crushed stone production in the second quarter of 2018 in the Mountain region was 17.3 Mt, and increase of 6.8 percent versus the second quarter of 2017.
Individual state production of crushed stone in the second quarter of 2018 was:
- Arizona: 3.64 Mt, an increase of 33.3 percent versus the second quarter of 2017.
- Colorado: 3.9 Mt, a decrease of 9 percent versus the second quarter of 2017.
- Idaho: State not included in quarterly survey.
- Montana: State not included in quarterly survey.
- New Mexico: 1.2 Mt, a decrease of 5.3 percent versus the second quarter of 2017.
- Nevada: 2.8 Mt, an increase of 6.7 percent versus the second quarter of 2017.
- Utah: 2.8 Mt, an increase of 27.2 percent versus the second quarter of 2017.
- Wyoming: 2.7 Mt, a decrease of 4.9 percent versus the second quarter of 2017.
Sand and gravel production in the second quarter of 2018 in the Mountain region was 55.9 Mt, an increase of 10 percent versus the second quarter of 2017.
Individual state production of sand and gravel in the second quarter of 2018 was:
- Arizona: 14.7 Mt, an increase of 28.5 percent versus the second quarter of 2017.
- Colorado: 9.7 Mt, a decrease of 3 percent versus the second quarter of 2017.
- Idaho: 7.9 Mt, an increase of 11 percent versus the second quarter of 2017.
- Montana: 3.7 Mt, an increase of 5.4 percent versus the second quarter of 2017.
- New Mexico: 2.9 Mt, a decrease of 5.1 percent versus the second quarter of 2017.
- Nevada: 5.8 Mt, an increase of 15 percent versus the second quarter of 2017.
- Utah: 8.2 Mt, an increase of 6.2 percent versus the second quarter of 2017.
- Wyoming: 2.6 Mt, an increase of 3 percent versus the second quarter of 2017.
Construction Impact
U.S. gross domestic product (GDP) – the value of all goods and services produced in the country – totaled $19.3 trillion in 2017; construction contributed $826 billion (4.3 percent).
- In Arizona, construction contributed $14.8 billion (4.6 percent) of the state’s GDP of $320 billion, more than the industry’s 4.3 percent share of U.S. GDP. Construction wages and salaries in 2017 totaled $427 billion in the United States, including $7.9 billion in Arizona. Nonresidential spending in the United States totaled $714 billion in 2017 ($438 billion private, $277 billion public). Private nonresidential spending in Arizona totaled $4 billion in 2017. State and local spending totaled $4.1 billion. Nonresidential starts in Arizona totaled $6.4 billion in 2017 and $6.9 billion in 2016, according to ConstructConnect.
- In Colorado, construction contributed $20.4 billion (5.9 percent) of the state’s GDP of $343 billion, more than the industry’s 4.3 percent share of U.S. GDP. Construction wages and salaries in 2017 totaled $427 billion in the United States, including $10.0 billion in Colorado. Nonresidential spending in the United States totaled $714 billion in 2017 ($438 billion private, $277 billion public). Private nonresidential spending in Colorado totaled $7.5 billion in 2017. State and local spending totaled $6.5 billion. Nonresidential starts in Colorado totaled $8.3 billion in 2017 and $6.4 billion in 2016, according to ConstructConnect.
- In Idaho, construction contributed $4.4 billion (6.1 percent) of the state’s GDP of $72 billion, more than the industry’s 4.3 percent share of United States GDP. Construction wages and salaries in 2017 totaled $427 billion in the United States, including $1.9 billion in Idaho.: Nonresidential spending in the U.S. totaled $714 billion in 2017 ($438 billion private, $277 billion public). Private nonresidential spending in Idaho totaled $1.3 billion in 2017. State and local spending totaled $1.1 billion. Nonresidential starts in Idaho totaled $1.4 billion in 2017 and $1.5 billion in 2016, according to ConstructConnect.
- In Montana, construction contributed $2.9 billion (6.1 percent) of the state’s GDP of $48 billion, more than the industry’s 4.3 percent share of U.S. GDP. Construction wages and salaries in 2017 totaled $427 billion in the United States, including $1.4 billion in Montana. Nonresidential spending in the United States totaled $714 billion in 2017 ($438 billion private, $277 billion public). Private nonresidential spending in Montana totaled $845 million in 2017. State and local spending totaled $1.1 billion. Nonresidential starts in Montana totaled $1.1 billion in 2017 and $1.3 billion in 2016, according to ConstructConnect.
- In New Mexico, construction contributed $3.8 billion (3.9 percent) of the state’s GDP of $97 billion, less than the industry’s 4.3 percent share of U.S. GDP. Construction wages and salaries in 2017 totaled $427 billion in the United States, including $2.2 billion in New Mexico. Nonresidential spending in the United States totaled $714 billion in 2017 ($438 billion private, $277 billion public). Private nonresidential spending in New Mexico totaled $1.5 billion in 2017. State and local spending totaled $1.3 billion. Nonresidential starts in New Mexico totaled $2 billion in 2017 and $2 billion in 2016, according to ConstructConnect.
- In Nevada, construction contributed $8.2 billion (5.2 percent) of the state’s GDP of $156 billion, more than the industry’s 4.3 percent share of U.S. GDP. Construction wages and salaries in 2017 totaled $427 billion in the United States, including $4.9 billion in Nevada. Nonresidential spending in the United States totaled $714 billion in 2017 ($438 billion private, $277 billion public). Private nonresidential spending in Nevada totaled $4.9 billion in 2017. State and local spending totaled $2.2 billion. Nonresidential starts in Nevada totaled $4.9 billion in 2017 and $3.8 billion in 2016, according to ConstructConnect.
- In Utah, construction contributed $10.5 billion (6.3 percent) of the state’s GDP of $166 billion, more than the industry’s 4.3 percent share of U.S. GDP. Construction wages and salaries in 2017 totaled $42 billion in the United States, including $4.9 billion in Utah. Nonresidential spending in the United States totaled $714 billion in 2017 ($438 billion private, $277 billion public). Private nonresidential spending in Utah totaled $2.5 billion in 2017. State and local spending totaled $3.3 billion. Nonresidential starts in Utah totaled $5.2 billion in 2017 and $5.4 billion in 2016, according to ConstructConnect.
- In Wyoming, construction contributed $2.0 billion (5.1 percent) of the state’s GDP of $40 billion, more than the industry’s 4.3 percent share of U.S. GDP. Construction wages and salaries in 2017 totaled $427 billion in the United States, including $1.0 billion in Wyoming. Nonresidential spending in the United States totaled $714 billion in 2017 ($438 billion private, $277 billion public). Private nonresidential spending in Wyoming totaled $494 million in 2017. State and local spending totaled $930 million. Nonresidential starts in Wyoming totaled $1.1 billion in 2017 and $1.5 billion in 2016, according to ConstructConnect.
Around the Region
Cemex received six 2017 Safety Awards from the Arizona Rock Products Association (ARPA) in recognition of safety practices at ready-mixed and aggregates operations across the state, including recognition for David Carter, Cemex’s safety manager for Country Arizona, as 2017 ARPA Safety Professional of the Year.
CASE Construction Equipment and heavy equipment dealer Titan Machinery donated the use of skid steers and compact track loaders for wildfire cleanup in Costilla County, Colo., this summer as part of Team Rubicon’s Operation Freedom Fire.
Komatsu Equipment Co. announced plans to build a 189,000-sq.-ft. service center on roughly 30 acres in Elko, Nev. Planned for completion in early 2020, the new facility will combine the staff and functions of three existing buildings. When operational, the new customer support and service center will be capable of providing expanded support to construction and mining machines across western North America.
Ogden, Utah-based Staker Parson Materials & Construction, a CRH company, won the 10 + Highway Project of the Year from the Associated General Contractors of Utah for its Mountain View Corridor: 5400 South to 4100 South Design-to-Build project.
Sources: U.S. Geological Survey and Associated General Contractors of America.
Pacific
The Pacific Region Produced 71.8 Mt Of Total Aggregates, A 13 Percent Year-Over-Year Increase.
The Pacific region as identified by the U.S. Geological Survey (USGS) consists of Alaska, California, Hawaii, Oregon and Washington.
In the second quarter of 2018, the most recent report available from USGS, the Pacific Region produced 71.8 million metric tons (Mt) of total aggregates, a 13 percent increase versus the second quarter of 2017.
That followed first-quarter production of 50.5 Mt, an increase of 27.9 percent versus the first quarter of 2017.
Crushed stone production in the second quarter of 2018 in the Pacific region was 25.7 Mt, an increase of 21.7 percent versus the second quarter of 2017.
Individual state production of crushed stone in the second quarter of 2018 was:
- Alaska: State not included in quarterly survey.
- California: 12.4 Mt, an increase of 7.9 percent versus the second quarter of 2017.
- Hawaii: State not included in quarterly survey.
- Oregon: 6.1 Mt, an increase of 10.9 percent versus the second quarter of 2017.
- Washington: 7.1 Mt, an increase of 75.2 percent versus the second quarter of 2017.
Sand and gravel production in the second quarter of 2018 in the Pacific region was 46.1 Mt, an increase of 8.6 percent versus the second quarter of 2017.
Individual state production of sand and gravel in the second quarter of 2018 was:
- Alaska: State not included in quarterly survey.
- California: 28.6 Mt, an increase of 3.2 percent versus the second quarter of 2017.
- Hawaii: State not included in quarterly survey.
- Oregon: 4 Mt, a decrease of 1.6 percent versus the second quarter of 2017.
- Washington: 13.4 Mt, an increase of 26.9 percent versus the second quarter of 2017.
Construction Impact
U.S. gross domestic product (GDP) – the value of all goods and services produced in the country – totaled $19.3 trillion in 2017; construction contributed $826 billion (4.3 percent).
- In Alaska, construction contributed $2 billion (3.9 percent) of the state’s GDP of $53 billion, less than the industry’s 4.3 percent share of U.S. GDP. Construction wages and salaries in 2017 totaled $427 billion in the United States, including $1.2 billion in Alaska. Nonresidential spending in the United States totaled $714 billion in 2017 ($438 billion private, $277 billion public). Private nonresidential spending in Alaska totaled $232 million in 2017. State and local spending totaled $1.4 billion. Nonresidential starts in Alaska totaled $1.6 billion in 2017 and $1.5 billion in 2016, according to ConstructConnect.
- In California, construction contributed $107.5 billion (3.9 percent) of the state’s GDP of $2.7 trillion, less than the industry’s 4.3 percent share of U.S. GDP. Construction wages and salaries in 2017 totaled $427 billion in the United States, including $55.6 billion in California. Nonresidential spending in the United States totaled $714 billion in 2017 ($438 billion private, $277 billion public). Private nonresidential spending in California totaled $30.1 billion in 2017. State and local spending totaled $30.3 billion. Nonresidential starts in California totaled $48.2 billion in 2017 and $37.7 billion in 2016, according to ConstructConnect.
- In Hawaii, construction contributed $5.6 billion (6.4 percent) of the state’s GDP of $88 billion, more than the industry’s 4.3 percent share of U.S. GDP. Construction wages and salaries in 2017 totaled $427 billion in the United States, including $2.7 billion in Hawaii. Nonresidential spending in the United States totaled $714 billion in 2017 ($438 billion private, $277 billion public). Private nonresidential spending in Hawaii totaled $1.4 billion in 2017. State and local spending totaled $2.3 billion. Nonresidential starts in Hawaii totaled $1.7 billion in 2017 and $2.6 billion in 2016, according to ConstructConnect.
- In Oregon, construction contributed $10.1 billion (4.3 percent) of the state’s GDP of $236 billion, the same as the industry’s 4.3 percent share of U.S. GDP. Construction wages and salaries in 2017 totaled $427 billion in the United States, including $5.7 billion in Oregon. Nonresidential spending in the United States totaled $714 billion in 2017 ($438 billion private, $277 billion public). Private nonresidential spending in Oregon totaled $3.8 billion in 2017. State and local spending totaled $3.7 billion. Nonresidential starts in Oregon totaled $5.5 billion in 2017 and $5 billion in 2016, according to ConstructConnect.
- In Washington, construction contributed $22.3 billion (4.4 percent) of the state’s GDP of $506 billion, more than the industry’s 4.3 percent share of U.S. GDP. Construction wages and salaries in 2017 totaled $427 billion in the United States, including $12.5 billion in Washington. Nonresidential spending in the United States totaled $714 billion in 2017 ($438 billion private, $277 billion public). Private nonresidential spending in Washington totaled $7.6 billion in 2017. State and local spending totaled $10.4 billion. Nonresidential starts in Washington totaled $10.5 billion in 2017 and $10.1 billion in 2016, according to ConstructConnect.
Around the Region
Roads and bridges that are deteriorated, congested or lack some desirable safety features cost California motorists a total of $61 billion annually – a much as $2,995 per driver in some urban areas – due to higher vehicle operating costs, traffic crashes and congestion-related delays. Adequate investment in transportation improvements at the local, state and federal levels is needed to relieve traffic congestion, improve road, bridge and transit conditions, boost safety, and support long-term economic growth in California, according to a report released by TRIP, a Washington, D.C.-based national transportation research organization. The TRIP report, “California Transportation by the Numbers: Meeting the State’s Need for Safe, Smooth and Efficient Mobility,” finds that throughout California, more than two-thirds of major locally and state-maintained roads are in poor or mediocre condition and 1,603 of 25,657 locally and state-maintained bridges (20 ft. or longer) are structurally deficient. The report also finds that California’s major urban roads are becoming increasingly congested, causing significant delays and choking commuting and commerce.
Cemex hosted more than 80 clients in Walnut Creek, Calif., during its first-ever California Building Materials Forum, with experts providing insight on industry trends, sharing best practices and looking forward to the future of the industry. Cemex and industry professionals tackled several issues facing the construction industry in northern California by delivering presentations on enhancing safety, current digital trends and staffing in tight labor markets to help clients prepare for possible changes.
Panamint Valley Limestone Inc. announced development of a lime plant in Trona, Calif. The $45 million plant will be the only producer of lime in the state of California, where currently all lime used is imported from out of state. The plant is expected to create 30 to 40 well-paying jobs.
U.S. Concrete Inc.’s wholly owned subsidiary, Polaris Materials, obtained the necessary permits to increase the amount of aggregates it imports at its terminal located in Long Beach, Calif. As a result of the new permit, Polaris is now able to deliver up to 2 million tpy of highly specified aggregates, effectively doubling its throughput capacity in supply-constrained Southern California.
MDU Resources Group, Inc. announced it has acquired the operations of Molalla Redi-Mix and Rock Products Inc., which produces ready-mix concrete in Molalla, Ore., south of Portland. Molalla Redi-Mix will become part of Knife River Corp., the construction materials subsidiary of MDU Resources. The acquisition expands Knife River’s reach into the growing market between Portland and Salem, and will be operated out of the company’s Portland Metro office. Earlier this year, MDU Resources also acquired the operations of Teevin & Fischer Quarry LLC, a leading aggregate producer on the north Oregon coast.
The Association of Equipment Manufacturers (AEM) on Sept. 20 co-hosted a town hall in partnership with Genie, a Terex AWP brand, in front of 150 Genie team members on the business’s showroom floor and with thousands more watching online. The event took place in Redmond, Wash. The discussion on trade comes as tensions continues to rise between the United States and several longstanding trade partners, including China – which is involved in an escalating trade war impacting the equipment manufacturing industry.
PacWest Machinery announced the purchase of land in Spokane, Wash., for the construction of a new dealership facility. Beginning in the second quarter of 2019, customers in eastern Washington and northern Idaho will be supported and serviced from the new facility at 3515 North Sullivan Road. PacWest is responsible for sales, rental and aftermarket support in the Pacific Northwest for the full line of Volvo Construction Equipment’s general production, road machinery and compact equipment. In addition, the company supplies equipment from other manufacturers including Metso Minerals, Roadtec, Tymco, GOMACO, Etnyre, Broce, Gensis and FRD Furukawa.
Sources: U.S. Geological Survey and Associated General Contractors of America.