Pit and Quarry

The rise of manufacturing

One particular manufacturer in the aggregates industry is telling its success story to the nation. McLanahan Corp., maker of aggregate-processing equipment, is coming off one of its best years ever, according to Michael McLanahan, its fifth-generation chairman and CEO. Find out why in this McClatchy Newspapers article. – Brian Richesson

Rise of 'rock and roll'

We first reported in January on The Freedonia Group’s World Construction Aggregates study. The group concluded that the global market for construction aggregates is expected to rise an average of 5.2 percent per year through 2015 and, more specifically, the North American market is expected to increase 4.3 percent per year. This is good news compared to the average annual decline of the North American market by 1.7 percent per year from 2005 to 2010.

And owing to more restrictive land use and environmental regulations, as well as the depletion of natural aggregates reserves, sales of recycled, secondary and other aggregates will climb at an above-average pace during the 2010 to 2015 period.

So “rock” is on the rise. What about the “roll”? Well, The Freedonia Group also did a study on the global demand for mining equipment, including “nonmetallic minerals mining machinery.” In World Mining Machinery, the group projected that the world market will increase an average of 8.5 percent annually through 2015.

This is consistent with what I have heard from some of the larger equipment manufacturing companies. However, much of the growth they’ve been experiencing and projecting for the near future is based on sales in other parts of the world, especially Asia.

In this latest study, The Freedonia Group says the North American market for mining equipment will also rise – an average of 5.8 percent per year.

While the projection is that the market for nonmetallic minerals mining machinery will increase at a somewhat slower rate than that of metal- and coal-mining equipment, the good news is that it’s going up.

Coupled with some upbeat news on the construction front, these two latest studies from The Freedonia Group give us much reason for optimism. It’s music to our ears. -Darren Constantino

Shedding some light on the situation

MSHA is clearing up a safety issue concerning Bayco flashlights. Certain model numbers of these flashlights are labeled with the MSHA emblem when, in fact, they are not an MSHA-approved product. Bayco’s website and advertising materials also improperly identified the flashlights as MSHA approved. The model numbers are XXP-5420B, XXP-5420G, XPP-5422B and XPP-5422G. Bayco is new to the mining market and has not received MSHA approval for any products at this time, though it has applied to MSHA for proper approval of the flashlights, the administration says in its alert. MSHA urges owners of these flashlights to return them to Bayco. The flashlights, however, are listed by Environmental Testing Laboratories as intrinsically safe for use in hazardous locations, and this listing is not affected. – Brian Richesson

Brighter days ahead?

And now for some good news.

Construction contractors and equipment distributors are optimistic local non-residential activity will improve in 2012, according to a recent survey by Wells Fargo Equipment Finance Inc., part of Wells Fargo & Co. In the company’s 2012 Construction Industry Forecast, Wells Fargo’s Construction Optimism Quotient (OQ) – the survey’s primary benchmark for measuring contractor and equipment distributor sentiment – is at 114 for 2012, marking a material increase from 96 in 2011. An OQ over 100 is considered optimistic of year-over-year improvement in local non-residential construction activity.

Highlights of the 2012 Construction Industry Forecast

• The worst is behind us. The OQ of 114 is a strong indicator that the industry expects 2012 non-residential construction activity to improve from last year. The 2012 OQ exceeds the score of 109 recorded in 2005, near the height of the construction boom. After falling to an all-time low score of 42 in 2009, the OQ climbed to 66 in 2010 and 96 in 2011.

• Overall numbers of contractors remain a concern. In spite of rising optimism over the last three years and strong optimism for 2012, industry executives remain cautious about the amount of available work to sustain the current number of non-residential construction contractors. About four in 10 respondents (41.7 percent) said they expect fewer contractors in their markets by the end of the year. Only 10.4 percent expect the number of contractors in their area to increase in 2012.

• Equipment distributors are very optimistic. When asked about their forecast for new equipment sales, 73.3 percent said they expect to sell more in 2012 than in 2011, and zero respondents said they expect a decrease in new equipment sales. Optimism among construction equipment distributors was high with nearly six in 10 distributors (58.1 percent) expecting an increase in local non-residential construction activity. Only 1.5 percent said they expect that activity to decrease in 2012.

• Contractors are optimistic, but not as much. While 18.3 percent of contractors said they expect to acquire more new equipment in 2012 than they acquired in 2011, 52.5 percent said they would acquire the same amount and 29.2 percent said they expect to buy less new equipment in the coming year. About 40 percent of contractors said they expect non-residential construction activity to increase in the coming year; 47.3 percent expect the same level; and 12.4 percent said they expect non-residential activity levels to decrease.

Quarry field trip comes to the students

Pennsylvania fourth-grade science curriculum includes the study of rocks and minerals, their uses, and the resulting impact on the economy and the environment. With a quarry located in Washington Township, Pa., Martin Stone Quarries Inc. has partnered for many years with Washington Elementary School to enhance the students' learning experience by hosting a specially designed field trip to their site.

When budget cuts to Pennsylvania schools forced the cancellation of the 2011 field trip, the company offered to come to the students. Programs were presented to the school's fourth-graders. Rod Martin spoke about the quarry and the production of stone, while Eric Gehman presented an introductory program about wetlands and the huge project undertaken by Martin Stone Quarries when they created a large wetlands area adjacent to one of their operations. -Darren Constantino