Pit & Quarry, May 2018

MODEST GROWTH FORECASTED FOR CEMENT T he Portland Cement Association PCA released its annual spring forecast which envisions modest growth for cement consumption over the next two years PCAs market intelligence group estimates consumption to grow by 28 percent in both 2018 and 2019 and then to climb by 4 percent in 2020 as impacts from potential federal infrastructure spending are likely to take effect The analysis estimates consumption at 993 million metric tons in 2018 1021 million in 2019 and 1061 million by the end of 2020 A variety of positive economic factors suggest a modest acceleration in real GDP construction markets and cement consumptions says Ed Sullivan PCA senior vice president and chief economist The PCA analysis projects robust infrastructure spending isnt likely to occur until the fourth quarter of 2019 given the key steps that must occur including passage of an infrastructure bill federal and state paperwork bid letting and review and finally contract awards leading to construction It will take time to implement a construction infrastructure program from passage in Congress to the first shovel Sullivan says This is an aspect often neglected by many economists PCA has evaluated the time each process takes to impact actual construction activity As a result the timing of PCAs impact of an infrastructure program on actual construction is later than most economists estimate While interest rates and inflation are expected to see slight increases consumer debt is low These factors suggest a modest acceleration in real GDP construction markets and cement consumption Sullivan says Add in benefits from tax reform and we will likely see the economy improving at a more brisk pace Industry Briefs Kimball Equipment expands territory Cedarapids a Terex brand and part of Terex Corp announced Kimball Equipment expanded its territory for Cedarapids products Additionally Kimball Equipment is now the authorized dealer for south of Del Norte Siskiyou and Modoc counties and north of the Kern County line in California Mellott Company to rep Eagle Crusher Mellott Company is now a dealer of Eagle Crusher equipment in Florida The company will handle all equipment and parts sales along with customer service and support for Eagle Crusher which manufactures portable and stationary crushing and screening plants as well as conveying equipment New dealer for Liebherr The construction equipment division of Liebherr USA Co named State Machinery Equipment Sales as a new dealer State Machinery will be a service and parts provider for the full line of Liebherr earthmoving and material handling equipment in Kenner Louisiana P Q AGGREGATE INDUSTRY INDEX JUN JUL AUG SEPT OCT NOV DEC JAN 16 FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC JAN 17 FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC May 378 JAN 18 FEB MAR APR MAY 400 350 300 250 Source Pit Quarry The P Q Aggregate Industry Index drops another five points this month in part because construction materials stocks pulled back further 12 MONTH CHART PRICE 52 WEEK RANGE MARKET CAP IN BILLIONS STOCKS LOW HIGH As of April 12 2018 Source Yahoo Finance Cemex CX 711 643 1037 1050 CRH Oldcastle CRH 3364 3247 3932 2790 Eagle Materials EXP 10048 8651 12249 490 Granite Construction GVA 5525 4514 6858 220 Heidelberg Cement HEI 7898 7694 9616 1560 LafargeHolcim LHN 4447 4330 5486 2680 Martin Marietta MLM 20282 19109 24432 1270 MDU Resources MDU 2781 2429 2854 540 Summit Materials SUM 2909 2414 3406 330 U S Concrete USCR 5910 5810 8635 099 U S Lime Minerals USLM 7351 7056 10140 041 Vulcan Materials VMC 11500 10996 14120 1520 pitandquarry com May 2018 PIT QUARRY 43