Pit & Quarry, December 2017
PRODUCERS IN BUYING MODE 32 PIT QUARRY December 2017 pitandquarry com PHOTO COURTESY OF CATERPILLAR A ggregate producers operated under limited capital budgets in the years during and after the Great Recession They were expected to maintain older equipment and squeeze as much life out of it as possible tabling capital purchases where they could But now that the industry is once again growing producers are on the prowl to upgrade equipment and incorporate the latest technologies into their plants In fact most aggregate producers spent more on capital projects in 2017 than they did in 2016 Nearly 63 percent of producers upped their capital spending in 2017 and nearly 46 percent increased their spend by at least 5 percent One in four producers were especially bullish increasing their capital spending upward of 10 percent So in which areas did producers make significant investments Excavators and loaders 51 percent were the most coveted equipment this year with conveying and material handling equipment 39 percent and crushing and hydraulic breaking equipment 39 percent not far behind Three in 10 producers made significant investments in screening and screen media and about one in four invested significantly in haul trucks Other equipment categories in which producers made significant investments in 2017 washing and classifying equipment 20 percent portable plants 18 percent and plant automation 16 percent Interestingly 10 percent of producers made significant investments this year in drone technology Not everyone expanded budgets for 2017 though Capital spending was flat for 29 percent of producers and a handful of producers 8 percent decreased their spending in 2017 PRODUCERS LOOK AHEAD TO 2018 Most aggregate producers are however positioned to increase their capital spending in 2018 Again nearly 63 percent of producers say their spending will be up in the new year with nearly 37 percent increasing their spend by at least 5 percent over 2017 While the number of producers increasing their spend by at least 5 percent is down for 2018 more producers 15 percent say their budgets for capital projects will be at least 10 percent higher in 2018 versus the previous year In addition a similar percentage of capital spending budgets 33 percent will be flat in 2018 compared with 2017 A very BY KEVIN YANIK STATE OF THE INDUSTRY EQUIPMENT TECHNOLOGY
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