Pit & Quarry, December 2016

Rising infrastructure and renovation projects are major drivers in the global market generating major demand for construction aggregate both increase at a steady pace Less robust increases will be recorded in the container glass market dampened by glass declining share of the packaging market as well as by the widespread use of recycled glass cullet in glass container manufacture The worst performance is expected in other smaller applications This will be due to the declining use of sand as a blasting abrasive because of the health concerns associated with worker exposure to silica dust In 2015 silica sand production in North America accounted for 28 percent of world output making it the second largest regional supplier after the Asia Pacific region Most trade is intraregional with silica sand moving from the United States to Canada and Mexico CONSTRUCTION OUTLOOK Dodge Data Analytics released its 2017 Dodge Construction Outlook which predicts that total U S construction starts for 2017 will advance 5 percent to 713 billion following gains of 11 percent in 2015 and an estimated 1 percent in 2016 The U S construction industry has witnessed signs of deceleration in 2016 following several years of steady growth says Robert Murray chief economist for Dodge Data Analytics Total construction starts during the first half of this year lagged behind what was reported in 2015 raising some concern that the current construction expansion may have run its course However the early 2016 shortfall reflected the comparison to unusually elevated activity during the first half of 2015 lifted by 13 large projects valued each at 1 billion or more such as a 9 billion liquefied natural gas export terminal in Texas and a 25 billion office tower in New York City As 2016 has proceeded the year todate shortfall has grown smaller easing concern that the construction industry may be in the early stage of cyclical decline Instead the construction industry has now entered a more mature phase of its expansion one that is characterized by slower rates of growth than what took place during the 2012 2015 period but still growth Since the construction start statistics will lead the pattern of construction spending this means that construction spending can be expected to see moderate gains through 2017 and beyond On balance there are a number of positive factors which suggest the construction expansion has room to proceed Murray adds The U S economy in 2017 is anticipated to see moderate job growth market fundamentals for commercial real estate should remain generally healthy and more funding support is coming from state and local bond measures Although the global economy in 2017 will remain sluggish energy prices appear to have stabilized interest rate hikes will be gradual and few and the new U S president has been elected For 2017 total construction starts are forecast to rise 5 percent to 713 billion Gains of 8 percent are expected for both residential building and nonresidential building while nonbuilding construction slides a further 3 percent The pattern of construction starts by more specific sectors is the following Public works construction will improve 6 percent regaining upward momentum after slipping 3 percent in 2016 Highways and bridges will derive support from the pitandquarry com December 2016 PIT QUARRY 11