Pit & Quarry, February 2019

PITANDQUARRY COM An Inside Look NEW DYNAMICS AT PLAY he demand for construction materials is there NALCs Dana Boyd sees it Unfortunately new hurdles are popping up to slow the pace of construction in his market One of the biggest slowdowns is happening downstream from his Indiana business Construction projects are T queued up but key people such as engineers arent available to see these jobs through at the usual pace We cant physically get things through the process says Boyd whose company is wedged between Indianapolis and Terre Haute Indiana Simply getting materials to jobsites is another very real problem Well lock down 30 to 40 trucks for one job but we have a hard time finding the drivers to move it Boyd says Weve got the materials sitting here in inventory but how do I get it out Labor is essential to the job but because theres a shortage of it just about everywhere theres a premium being placed on those who are available As a result wages are going up You look at the builders fabricators and iron workers you cant get your hands on them Boyd says As he describes money absolutely still talks The loyalty is gone Boyd says Head hunters are going nuts looking for people particularly front line managers who know how to move and shake A supervisor shortage forces producers to consider adding controls or larger equipment to mitigate pain In addition producers continue to experience extended lead times on new machinery they require in house today Its getting worse Boyd says Manufacturers are trying to add production lines but how do you get people trained Used machinery is an option but producers wont necessarily find the bargains they did at auction years ago I just went to an auction the other day for heavy equipment Boyd says A 10 year old Kevin Yanik EDITOR IN CHIEF Premiums are being paid on used equipment just to have it in house machine used to be worth 60 cents on the dollar Now its 75 to 80 cents as long as its maintained CHANGING BUSINESS LANDSCAPE These are a handful of the dynamics at play that are sneaking up on the industry at least through the eyes of one producer The dynamics are putting a wrench in the concept of business as usual Weve got to have labor and equipment to do our jobs Boyd says Despite barriers in these areas Boyd maintains an optimistic view for the construction materials industry As he sees it the world will need aggregate as long as human life persists But some new variables are injecting a bit of uneasiness into the business equation Its a good thing the market is growing Boyd says Were kind of struggling to figure out where to invest and whats most important P Q North Coast Media LLC 1360 E Ninth St Suite 1070 Cleveland OH 44114 Phone 216 706 3700 Fax 216 706 3711 EDITOR IN CHIEF Kevin Yanik 216 706 3724 kyanik@ northcoastmedia net MANAGING EDITOR Zach Mentz 216 706 3747 zmentz@ northcoastmedia net ASSOCIATE EDITOR Joe McCarthy 216 363 7930 jmccarthy@ northcoastmedia net SENIOR DIGITAL MEDIA CONTENT PRODUCER Allison Barwacz 216 706 3796 abarwacz@ northcoastmedia net MSHA THE LAW COLUMNISTS Bill Doran william doran@ ogletree com Margo Lopez margaret lopez@ ogletree com AGGREGATE FORECAST COLUMNIST David Chereb david chereb@ sc marketanalytics com MARKET INSIGHTS COLUMNISTS George Reddin greddin@ fminet com Scott Duncan sduncan@ fminet com WESTERN U S CORRESPONDENT Loretta Sorensen GROUP PUBLISHER Rob Fulop 216 706 3741 rfulop@ northcoastmedia net ASSOCIATE PUBLISHER Dino Vitanza 216 706 3744 dvitanza@ northcoastmedia net PRESIDENT CEO Kevin Stoltman 216 706 3740 kstoltman@ northcoastmedia net V P FINANCE OPERATIONS Steve Galperin 216 706 3705 sgalperin@ northcoastmedia net V P GRAPHIC DESIGN PRODUCTION Pete Seltzer 216 706 3737 pseltzer@ northcoastmedia net ART DIRECTOR Kim Traum 216 706 3779 ktraum@ northcoastmedia net GRAPHIC DESIGNER Courtney Townsend 216 363 7931 ctownsend@ northcoastmedia net PRODUCTION SERVICES MANAGER Terri Johnstone Mueller 216 978 9622 tjohnstone@ northcoastmedia net SR AUDIENCE DEVELOPMENT MANAGER Antoinette Sanchez Perkins 216 706 3750 asanchez perkins@ northcoastmedia net SR MARKETING EVENT MANAGER Michelle Mitchell 216 363 7922 mmitchell@ northcoastmedia net MARKETING EVENT MANAGER Angela Gibian 216 363 7936 agibian@ northcoastmedia net MARKETING SALES MANAGER BUYERS GUIDE INQUIRIES Chloe Scoular 216 363 7929 cscoular@ northcoastmedia net DIRECTOR OF AUDIENCE ENGAGEMENT Bethany Chambers 216 706 3771 bchambers@ northcoastmedia net CONTENT MARKETING PRODUCER Grace Rybak 216 706 3775 grybak@ northcoastmedia net LIST RENTAL THE INFORMATION REFINERY INC Brahm Schenkman 800 529 9020 bschenkman@ inforefinery com REPRINTS Brett Petillo Wrights Media 877 652 5295 bpetillo@ wrightsmedia com CLASSIFIED ADVERTISING 216 363 7929 cscoular@ northcoastmedia net SUBSCRIPTIONS CUSTOMER SERVICE 847 513 6030 pitandquarry@ omeda com Fax 847 763 9694 Web www pitandquarry com subscribe 8 PIT QUARRY February 2019