Alexander: Solid demand continues, pricing remains healthy

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 questions: What does your 2020 crushed stone, sand and gravel production look like to date? Have you seen upward or downward movement on aggregate pricing this year? And do you have an early sense of how production and pricing might fare next year?

Given all of the adversities our industry has to contend with, production this year has been a pleasant surprise. Volumes could have easily been off compared to the prior year, but that has not been the case. Demand has been very solid, and we are certainly appreciative of that.

We expect more of the same in 2021, barring any catastrophic events. Demand remains present and optimistically, post-election, there could be an uptick with political uncertainty gone.

The industry overall has been very good about avoiding price deterioration and capturing the highest value for its products. 2020 has been no exception, and the outlook for 2021 remains consistent with industry averages in the 5 percent-plus range.

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

Featured image: PamElla Lee Photography