Alexander: How population growth is impacting aggregate consumption

By |  October 1, 2020
Pit & Quarry Roundtable & Conference 2020


My outlook for the aggregate industry over the next several months remains very positive.

I feel that backlogs remain strong, and the pandemic has not greatly impacted demand in a negative way. The need for stone, sand and gravel is as much there now as it has ever been. Companies may have hit the pause button on projects when COVID-19 appeared, but fundamental demand factors remain.

The population continues to grow, residential markets face a shortage and infrastructure needs are far from being met. Decline is out there, and shortcomings in demand will be felt in areas experiencing population decline and state budget shortfalls.

The greatest demand continues to be in areas where the largest population growth is occurring (i.e., the Southeast and Southwest). This is the greatest indicator of demand in the infrastructure and housing segments, where there continue to be significant backlogs and pent-up demand. Couple these factors with a better understanding of the pandemic’s impacts, and you have a good recipe for continued strong levels of sales and the production of aggregate.

Scott Alexander is executive vice president of Arcosa Aggregates, which is headquartered in Dallas.

Editor’s note: As part of our Road to Recovery coverage, P&Q is turning to some of the industry’s leaders for their takes on the road ahead. This month, leaders were posed with the following question: What is your expectation for aggregate demand in the coming months? Where do you anticipate the greatest demand to come from, and are there areas where you anticipate demand shortcomings?

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