Pit & Quarry, December 2016

SPECIAL REPORT OF THE 10 PIT QUARRY December 2016 pitandquarry com ISTOCK COM JACKYLEUNG STATE INDUSTRY f numbers are any indication the North American aggregate industry continues to show positive growth with increases in production and encouraging stock performance from most publicly traded producers The historic election last month may or may not have an impact on the industry Both presidential candidates were citing the need for increased infrastructure spending as were many on both sides of the aisle in Congress It is clear to nearly everyone in the U S government that Americas decaying infrastructure needs to be addressed News from 2016 included the unveiling of much new technology for aggregate producers at MINExpo International The variety of new equipment offerings promise more efficient production and increased safety for workers This includes connected mine technologies which seemed to be a recurrent theme at the show and which allow producers to integrate data from all site assets and use that information to increase efficiencies At the upcoming ConExpo Con Agg scheduled for early March in Las Vegas producers will see even more cutting edge technologies on display In 2016 production numbers were up An estimated 646 million metric tons of total construction aggregate were produced and shipped for consumption in the United States in the second quarter of 2016 The U S Geological Survey says this is a 6 percent increase compared with the second quarter of 2015 GLOBAL MARKET According to a report Global Market Study on Construction Aggregates Industry Analysis and Forecast 2016 2024 published by Persistence Market Research the consumption of construction aggregate is estimated to reach 433 billion metric tons by the end of 2016 valued at 350 billion In addition the market is anticipated to witness a 63 percent year over year growth in 2016 and the consumption is projected to reach 692 billion metric tons at the end of 2024 in terms of volume Rising infrastructure and renovation projects are major drivers in the global market generating major demand for construction aggregate Advanced commercial construction residential construction tourism and manufacturer preferences for recycled aggregate and manufactured sand are also expected to fuel demand However depleting natural resources pollution transportation and technological challenges remain obstacles the global market must overcome China is the dominating region with a 267 percent share in the global market in 2015 followed by North and Central America SILICA SAND Silica sand demand in North America is forecast to expand 51 percent per year through 2020 to 828 million metric tons This will represent a somewhat slower pace than that recorded during the 2010 2015 period Low oil and gas prices into the near term will depress the number of new wells drilled through 2020 limiting opportunities for frac sand suppliers Nevertheless increasing intensity of use per well will fuel positive growth in silica sand consumption making it the fastest growing market in North America into the long term These and other trends are presented in World Industrial Silica Sand a new study from The Freedonia Group Demand for industrial sand in building product applications will also record healthy advances through 2020 fueled by a rebound in bituminous roofing demand as the U S construction industry continues to recover from the effects of the Great Recession According to analyst Zoe Biller Gains in the chemicals and flat glass markets will Production numbers are increasing and construction starts are forecast to rise as the industry heads into 2017 BY PIT QUARRY STAFF I