Aggregate industry stakeholders hopeful for 2023

As 2022 draws to a close, those within the aggregate industry are taking stock of how the year went and what they expect in 2023. Read what a few shared with P&Q:

JOSH LEFTWICH, TEXAS AGGREGATES & CONCRETE ASSOCIATION

We anticipate a strong need for construction materials brought on by continued population growth, as well as Gov. Greg Abbott’s (R-Texas) $85 billion commitment to new investments in critical infrastructure stipulated by TxDOT’s 2023 Unified Transportation Program.

Also in 2023, we welcome the 88th Texas legislative session, when industry will continue to work to ensure consistency and predictability in regulatory policies – a process requiring a delicate balance between sustaining growth and being protective of the environment.

CLAY ALBRIGHT, CALDWELL STONE CO.

Our industry is hard to predict year to year and, sometimes, even month to month. But overall, we’ve increased production the past several years, and I’m optimistic next year will continue in the same direction.

PATRICK WEAVER, L&H INDUSTRIAL

We expect continued growth in the industry. However, due to economic headwinds and market needs, I believe we will most likely see a significant focus on improving current asset throughput, versus the larger physical acquisitions we had become accustomed to seeing in recent years.

Ongoing supply chain interruptions, workforce shortages and the push toward sustainable production will continue to take center stage in decision-making for many producers. This will likely encourage companies to focus on their maintenance practices, as well as inventory policies. Adjustments will be required to minimize the effects of these challenges and to align with current and future production goals.

Many producers will lean on suppliers to continue to optimize and support the industry’s significant equipment and component requirements, along with the increased market need for contract services to support operational improvement.

RANDY BREAUX, MOTION

We expect the aggregate industry to continue to show growth. However, like most industry forecasts, the growth may be slightly slower in 2023 than in 2022. Federal funding for roads and infrastructure will positively impact the aggregate industry – if and when the funds make their way to the projects.

RON EARL, ASTEC INDUSTRIES

I believe we will see healthy increases across all aggregate products and major projects. The impending rollout of the Infrastructure Investment & Jobs Act creates a major opportunity for the industry. However, this growth may be influenced by inflation, available workforce and supply chain.

ALAN COALTER, POWERSCREEN CRUSHING & SCREENING

If the Infrastructure Investment & Jobs Act money is released, that would make us feel better. But we’ll be cautious for next year. It hurts that interest rates are going up. People are used to 3 or 4 percent. Now, you have 7s and 8s, and by March of next year they’ll be at 9. People are going to pull the handbrake up and go: ‘We’ll stick with what we have. We’ll fix what we have.’

There doesn’t seem to be a shortage of demand for aggregate yet. If they release the funds for the infrastructure bill, people will have plenty of work to do.

ROBERT DUGAN, CALIFORNIA CONSTRUCTION & INDUSTRIAL MATERIALS ASSOCIATION

Looking ahead, the crystal ball has become murky. On the positive side, we have strong market drivers like SB1 in California and significant new federal funding for infrastructure in the Infrastructure Investment & Jobs Act, the Inflation Reduction Act and more.

On the other hand, we are already seeing impacts from the softening economy, inflation and changing regulatory burdens on private-sector bidding and anticipated job starts. There are also significant delays on the new federal investments caused by policies and executive orders that require new bureaucracies for programming and disbursement.

The picture is further clouded by state efforts to expedite decarbonization ahead of available equipment and unclear ‘buy clean’ processes, all of which bleed infrastructure dollars from actual construction.

Fortunately, our construction and industrial materials industries are already hard at work innovating toward decreased carbon output. We don’t know what the market looks like when they all come together ‘at grade,’ but that will be something we all need to keep an eye on to prevent future disruptions of our supply chain.

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Featured image: P&Q Staff