Pit & Quarry, February 2016

AGG1 is expected to be bigger than ever AGGREGATES FORECAST Aggregates United States Level Four year outlook higher owing to new spending With the implementation of the FAST Act and higher government spending at all levels my outlook for 2016 2019 is modestly higher by about 20 million to 40 million metric tpy With more government support and an economy that is still growing the outlook for 2016 is positive We now have a full employment economy according to the Federal Reserves definition of 5 percent unemployment being full employment It doesnt feel that way to most people though As I wrote a few years ago this is an artificial economy due to very easy monetary policy i e 0 percent interest rates In 2016 and 2017 we will begin to see how robust this economy really is My bet is that it wont look very good by the end of 2016 By segment housing will continue to 3127905 2627905 2127905 1627905 1127905 627905 127905 1000s Metric Tons 2006 2007 2008 2009 2010 2012 2016 2015 2014 2013 2011 Actual Res NRes NBld Total 2005 2004 do well Even our decline in 2017 is modest by historical norms Nonresidential will grow as vacancy rates decline in most markets However the gains are small compared to prior cycles Full time employment growth remains sluggish and online shopping replaces mall shopping Nonbuilding increases due to higher highway contracts But even here the growing burden of pension obligations and rising health care spending will dampen materials gains 2017 Higher interest rates even though 2018 they will still be very low and poor household wealth gains will cause the decline in 2017 for all segments In addition exports will suffer due to a slowing Chinese economy and continued problems in Europe David Chereb David Chereb Ph D SC Market Analytics SC MA produces customized market forecasts by major segments of construction from the county level up Clients use its market intelligence reports for business planning and acquisition analyses in aggregates readymix concrete and cement For more information please visit www sc marketanalytics com A GG1 Academy Expo and the World of Asphalt Show Conference will be held March 22 24 at the Music City Center in Nashville Tenn The shows target the business and professional development needs of aggregates asphalt pavement maintenance and traffic safety industry professionals A comprehensive slate of more than 115 education sessions will provide operational and management strategies and techniques to help attendees improve professional knowledge and company productivity according to show management Education is integral to the AGG1 and World of Asphalt experiences says LafargeHolcims Rick Feltes the AGG1 chair representing the National Stone Sand and Gravel Association NSSGA The expert presentations and invaluable peer networking help attendees sharpen their skills and bring practical solutions back to the workplace Show management reports that attendees will find the largest show floor ever in Nashville with more than 150000 net sq ft of exhibits from manufacturers and suppliers showcasing their latest equipment and product innovations World of Asphalt and AGG1 were created and are guided by our industries says Lehman Roberts Co s Rick Moore World of Asphalt chair representing the National Asphalt Pavement Association Thats a key reason for their success in offering products and best practices that make a difference in helping attendees and their companies grow and thrive Education sessions offered by the American Road and Transportation Builders Association will supplement the shows education programs NSSGA will also offer workshops on strategic sales training and basic supervisory training as well as a tour of Rogers Groups Rutherford Quarry in Murfreesboro Tenn AGG1 sets its sights on Music City 10 PIT QUARRY February 2016 www pitandquarry com