TOP NEWS
Acquisition Means Positive Results
U.S. Concrete noted in its fourth-quarter and year-end report, aggregate products revenue increased $91.9 million, or 101.3 percent for 2018 compared to the prior year. In 2018, aggregate products segment Adjusted EBITDA increased by $14.4 million to $41.6 million compared to the prior year.
Arcosa Reports
In its fourth-quarter and year-end report, Arcosa Inc. concluded that its ACG Materials acquisition significantly strengthened its presence in specialty materials and aggregates markets in its Construction Products business.
Cuts Like a Knife
MDU Resources Group Inc.’s subsidiary Knife River Corp. acquired Viesko Redi-Mix Inc., a ready-mixed concrete supplier headquartered near Salem, Ore. Viesko is a vertically integrated business with ready-mix plants in Wheatland, Woodburn and McMinnville, Ore., and an aggregate operation in Keizer, Ore.
MSHA WATCH
The Mine Safety and Health Administration (MSHA) reported that on March 7, a 46-year-old contractor with three years of experience was fatally injured when he lost his balance and fell backwards through a narrow gap between two log washers and landed on a cable tray approximately 12 ft. below. The victim was changing drive belts on a log washer motor when his wrench slipped off of a bolt he was tightening, causing the loss of balance.
USGS STATS
Preliminary 2018 total aggregates production numbers were published in the just-released 2019 Mineral Commodity Summaries publication. Total aggregates production was 2.37 billion tons, versus 2.25 billion tons in 2017, an increase of 5 percent. Of that amount, 1.40 billion tons of crushed stone valued at more than $16.6 billion was produced by an estimated 1,465 companies operating 3,710 quarries and 176 sales and/or distribution yards in 50 states, an increase of 3 percent compared with that of 2017. Construction sand and gravel production was about 970 million tons in 2018, an increase of 8 percent compared with that of 2017.
ECONOMIC INDICATORS
The U.S. Census Bureau reported that construction spending during January 2019 was estimated at a seasonally adjusted annual rate of $1,279.6 billion, 1.3 percent (±0.8 percent) above the revised December estimate of $1,263.1 billion. Highway construction was at a seasonally adjusted annual rate of $99.9 billion, 11.8 percent (±5.1 percent) above the revised December estimate of $89.3 billi
The Dodge Momentum Index rose 4.7 percent in January to 157.7 (2000=100) from the revised December reading of 150.6. The Momentum Index, issued by Dodge Data & Analytics, is a monthly measure of the first (or initial) report for nonresidential building projects in planning, which have been shown to lead construction spending for nonresidential buildings by a full year.
The Portland Cement Association (PCA) released its annual Spring Forecast, which envisions strong to moderate growth for cement consumption through 2019 and into 2020. PCA Market Intelligence expects cement consumption will grow by 2.3 percent in 2019; compared to the Fall 2018 forecast this represents a marginal slowing in the pace of growth.
ENERGY
- Retail Gasoline Price:3/18/2019: $2.548/gal., up $0.077 from week earlier; down $0.050 from year earlier.
- Retail Diesel Price:3/18/2019: $3.070/gal., down $0.009 from week earlier; up $0.098 from year earlier.
- WTI Crude Oil Futures:3/18/2019: $59.09/barrel, up $2.30 from week earlier; down $3.25 from year earlier.
- Natural Gas Inventories:3/18/2019: $2.850/MMBtu, up $0.078 from week earlier; up $0.162 from year earlier.
- Electricity:12/20/2018: Average price to industrial customers 6.65 cents/kilowatt hour; up from 6.54 cents/kilowatt hour from year earlier.
Source: U.S. Energy Information Administration