Pit & Quarry, November 2009

R O A D T O R E C O V E R Y R O A D T O R E C O V E R Y The delay of transportationfunding reauthorization might prove even harder on producers and the entire aggregate industry than the recession BRIAN BARLOW BMG Martin Marietta president testifi es on impact of stimulus W ard Nye president and COO of Martin Marietta Materials testified before the U S House of Representatives Committee on Transportation and Infrastructure on the status of the American Recovery and Reinvestment Act ARRA His testimony on behalf of the National Stone Sand Gravel Association Ward Nye NSSGA was to present the aggregates industrys perspective on ARRA and to discuss its impact on the industry Nye testified that despite a 27 percent decrease in aggregate production in the first six months of 2009 there was evidence that ARRA funds helped maintain the market and prevented significant erosion of the workforce in the transportation construction market of the aggregates industry The stimulus funds positive impact may be muted by state and local government budget difficulties In preparation for the hearing NSSGA surveyed its producer members regarding ARRA and the activity it generated Respondents indicated there were some specific positive regional impacts in the Northeast and Midwest While the majority had not yet seen a noticeable sales increase over the last three months it is believed this is due in part to stimulus projects taking longer than expected to advance to the actual construction phase Indications are that about 25 percent of ARRA projects will commence in the second half of 2009 with most in 2010 About one third of respondents think 2010 will bring a sales increase Accordingly it is expected that the stimulus will have a positive impact on construction activity and employment A majority responded that 2010 state transportation budgets are expected to be down or level compared to 2009 President Barack Obama joined U S Transportation Secretary Ray LaHood at the site of the Fairfax County Parkway Extension in Virginia to announce that more than 8000 highway projects have been funded by the American Recovery and Reinvestment Act ARRA since its passage in February What makes these kinds of projects so important isnt just that were creating so many jobs Its that were putting Americans to work doing the work that America needs done We are rebuilding our crumbling roads bridges and waterways Obama said We are strengthening our nations infrastructure in ways that will leave lasting benefits in our communities making them stronger safer and better places to live We have come a long way in a very short time LaHood said Projects like this one are not only improving safety and convenience for motorists they are also helping to put the economy back on track by creating tens of thousands of jobs each month Of the nearly 27 billion available for highway projects through the Recovery Act 195 billion has been obligated for 8050 projects nationwide As of Oct 9 4760 highway projects were under construction The Fairfax County Parkway Extension project is adding much needed capacity to a route that by 2011 will serve nearly 66900 daily drivers an increase of nearly 10 percent over current levels At an estimated 140 million it is Virginias largest ARRA funded project The projects first two phases valued at 80 million began construction last year supporting 114 workers Phase 4 which began construction in October received 228 million in Recovery Act funding and will support an estimated 57 workers Phase 3 anticipated to begin construction later this year is expected to rely on 371 million in Recovery dollars and will support an estimated 50 workers RAMPING UP TO REBUILD AMERICA Obama LaHood visit Virginias largest Recovery Act project www pitandquarry com November 2009 PIT QUARRY 9