The 2024 Regional Pricing Puzzle

Inconsistent Prices, Soaring Transport Costs And Supply Bottlenecks – Why The Aggregates Market Last Year Was Anything But Uniform Across The United States.

By Barry Hudson

Pricing sand and aggregates in 2024 feels like solving a puzzle where half the pieces are missing. Despite being one of the most critical inputs in construction – used in everything from roads to buildings – prices vary wildly across the United States.

Some regions enjoy stable costs thanks to abundant reserves and shorter transport distances. Others, constrained by environmental regulations, urban sprawl or aging infrastructure, are paying rates that continue to climb faster than inflation.

Add in rising fuel costs, labor shortages, and market consolidation, and the picture becomes clear: aggregate pricing isn’t just about tonnage anymore – it’s about geography, logistics and policy.

Let’s break down the driving forces behind these inconsistencies and where the numbers currently stand.

1. Transportation Costs: The Silent Price Driver
It’s a sobering statistic: transportation accounts for 50-70% of the final delivered cost of aggregates (National Stone, Sand & Gravel Association, 2023). Even if material prices remain stable at the source, the cost to get aggregates from Point A to Point B can quickly erode any price advantage.

• In California, a state notorious for strict environmental regulations and lengthy permitting processes, producers often truck aggregates significant distances to meet demand in urban hubs like Los Angeles and the Bay Area. The result? Prices averaging $18-$23 per ton (USGS, Mineral Commodity Summaries, 2024).
• Meanwhile, in Texas, where quarries are plentiful and regulations less restrictive, transportation distances are shorter and prices average a far more competitive $10-$14 per ton (Texas Aggregates & Concrete Association, 2023).

The closer you are to a reliable quarry, the better your price. For many regions, however, that proximity no longer exists, forcing reliance on long-haul freight.

2. Sand: Abundant but Scarce?
Not all sand is created equal. The kind of sand needed for construction – angular and coarse enough to bind effectively in concrete – is far less abundant than the beach sand that’s everywhere.

In Florida, where construction activity continues to surge, sand has become an increasingly valuable commodity. According to the Florida Department of Transportation, construction-grade sand prices hit $15.60 per ton in early 2024, marking a 30% increase from pre-pandemic levels.

Contrast this with the Midwest, where plentiful river and glacial deposits have kept sand prices more stable, averaging $10-$12 per ton. But here, too, rising fuel and freight costs are creating upward pressure that can’t be ignored.

The sand paradox is clear: abundant in theory, constrained in practice.

3. Environmental Regulations: Balancing Sustainability and Cost
Stricter environmental regulations, while essential, often translate into higher prices for aggregates. Quarries are harder to permit, expansions take years, and local opposition to extraction projects is stronger than ever.

In the Northeast, particularly New York and New Jersey, zoning restrictions and environmental reviews have tightened the supply chain. As a result, producers face prices of $20-$25 per ton. This is a staggering contrast to more business-friendly states like Georgia, where prices remain closer to $12-$15 per ton.

The need for sustainable practices is undeniable, but it does come at a cost—one that producers and end-users alike are increasingly forced to shoulder.

4. Inflation and Rising Operational Costs
Inflation continues to leave its mark on the aggregates industry. Rising fuel costs, labor shortages and equipment expenses all contribute to pricing pressure.

• According to the Association of General Contractors, freight and fuel costs alone have risen 15-20% year-over-year in many regions, particularly those reliant on long-distance trucking.
• Wage inflation has also hit the sector hard. Recruiting and retaining skilled drivers, equipment operators and laborers has required wage increases that inevitably pass through to the final product cost.

In rural areas, where trucking distances routinely exceed 50 miles, delivered prices have spiked by as much as 30-40%, further compounding regional disparities.

5. Market Consolidation: Fewer Players, Greater Influence
The aggregates market has experienced significant consolidation over the past decade. Larger producers, including Martin Marietta, Heidelberg Materials and Vulcan Materials, now dominate significant regional markets, particularly in high-demand areas. With fewer competitors, pricing dynamics can tilt toward the suppliers, leaving buyers with limited flexibility. While smaller operators still play an important role, they often struggle to compete with the efficiency and scale of larger firms.

Consolidation brings benefits—such as investment in technology and sustainability—but also reinforces regional monopolies where local supply is tightly controlled.

The 2024 Regional Pricing Snapshot
Here’s a look at the current state of aggregates pricing across the United States., based on transportation, supply and regulatory dynamics:

• West Coast (California, Oregon, Washington): $18-$23/ton – Driven by high transport costs and regulatory constraints.
• Texas & South-Central: $10-$14/ton – Shorter transport distances and abundant supply keep costs lower.
• Southeast (Florida, Georgia): $12-$16/ton – Strong demand but tempered by sufficient regional supply.
• Midwest (Ohio, Illinois): $10-$12/ton – Stable pricing supported by abundant local deposits.
• Northeast (New York, New Jersey): $20-$25/ton – Tight supply and heavy regulatory burdens drive costs higher.

The Path Forward: Addressing the Gaps
What does this all mean for the future of pricing? It’s clear that the aggregates industry needs to address a few critical challenges:

1. Reducing Transport Costs: Localized production facilities, better freight efficiency and optimized logistics will be key to mitigating the transportation premium.
2. Accelerating Permitting Processes: Balancing sustainability with timely permitting can help ease supply bottlenecks in regions like the Northeast and West Coast.
3. Leveraging Digital Platforms: Pricing and quoting tools (like Price Bee) can provide better transparency, efficiency, and data-driven decision-making across the supply chain.
4. Cleaner Data for Smarter Forecasting: Producers and buyers need better visibility into trends, costs and regional variations to make informed decisions.

From Fragmented to Forward-Thinking
The regional pricing landscape for sand and aggregates in the United States is far from uniform, and the challenges are significant. Transportation costs, sand shortages, regulations, inflation and market consolidation have all shaped the patchwork pricing we see in 2024.

To move forward, the industry must embrace better logistics, smarter technology and a commitment to balancing sustainability with economic reality. While the pricing puzzle may never fully disappear, a more transparent, efficient approach can help producers and buyers alike navigate the inconsistencies.

Until then, whether you’re paying $10 or $25 per ton, one thing remains certain: in the world of aggregates, geography is destiny.

Barry Hudson is the co-founder of Price Bee, a culmination of experience and ideas forged together over five years to become a powerful tool to streamline your sales process and increase revenues in the construction materials industry. He can be contacted at [email protected]