Word on the street
November 20, 2008 By: Darren Constantino, North Coast Media Pit & QuarryStocks are riding a roller coaster (one with big hills), energy prices are all over the board, and there is no stability in any of the world’s financial markets. In our industry, next year brings a new trade show and uncertainty about federal highway funding. In light of these events, what are producers and other industry people saying?
“I think the industry will see a down year in all sectors,” said Chris Upp, director of quarry operations for Conco Quarries Inc. “Over this past year, we have seen a 30 to 40 percent decrease in residential construction, while governmental and commercial construction have remained at a relatively steady rate from 2007 levels. In 2009, all of these markets will be down.” Upp believes his company’s overall sales will be down 8 to 10 percent next year.
Xavier Thérin, Lafarge’s director of operations and manufacturing for North and Latin America, said, “With the current economic situation, we are continuing to focus on containing total costs and reducing excess capacity. All opportunities are being examined to curtail costs, however, we are taking great care not to jeopardize the long-term integrity of the business.” Thérin expects 2009 “will be a very difficult year.”
Charley Rea, director of communications and policy for the California Construction and Industrial Materials Association, said, “The most common reaction I get is that business is off about 50 percent, without much on the horizon.”
Silver lining
I heard much of the same pessimism during a visit to the annual meeting of the Ohio Aggregates & Industrial Minerals Association. Our State of the Industry report begins on page 8, and most of it suggests a rough period ahead, as well. But those looking for good news might like this report from the Association of Equipment Manufacturers. In its annual Outlook survey, released just as we went to press, the group said sales of concrete and aggregate equipment by year-end 2008 are predicted to decline 8.6 percent in the United States. For 2009, however, sales are expected to
INCREASE 4.6 percent. That’s news we all like to read.
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