Rock Products

NOV 2017

Rock Products is the aggregates industry's leading source for market analysis and technology solutions, delivering critical content focusing on aggregates-processing equipment; operational efficiencies; management best practices; comprehensive market

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30 • ROCK products • November 2017 The Q&A Forum way to address the problem assists the local managers in their justifications and decision-making. With our line of individual modules like primary plants or ultra-sand plants modules as well as complete plants including conveyors and electrical, McLanahan is well posi- tioned to address this newer segment of the market while still being able to deliver the custom-engineered solu- tions a major portion of the market still requires. How do you expect the industry to perform in 2018? What factors point to an up versus down year? What are some of the hot spots around the country? LEPP: We have high expectations for 2018. The surge of capital projects and improvements shows not sign of slowing. We expect growth across the industry, especially in companies involved in infrastructure. GARRISON: I believe 2018 will be another strong year. There are a lot of capital projects booked and based on our current activity and the size of our backlog, next year's potential is looking bright. MCLAUGHLIN: While there are some feelings of uncertainty, many aggre- gate producers remain cautiously optimistic about the administration's promises to cut regulations and implement a substantial infrastruc- ture proposal. What factors point to an up versus down year? GDP growth, low inflation and low interest rates are several key factors as are many of the comments above. It seems we are almost over the ill effects of the finan- cial crisis and have a positive outlook the economy will continue to grow at a steady pace. SPAKE: It's always hard to say. We called this year flat, and it's tracking about 4 percent up. Personally, I think next year will be similar – I'll call it flat. One hotspot is industrial minerals, including renewed optimism in frac sand, which includes the expansion currently occur- ring in West Texas. Large construction jobs will make the difference. CLARKE: Again, we are cautiously optimistic. For example, the asphalt industry is seeing increased volumes of RAP. The percentage of recycled mate- rial in the asphalt industry is amazingly high, which creates opportunity for recycling for us on the crushing and screening segment. WEISS: Overall, we expect to see contin- ued growth in 2018 – current economic indicators support this assumption for our products. For the Americas, we see the quarry and aggregates segment including sand, cement, asphalt and stone to continue a positive upward trend resulting from general economy, hurricane/natural disaster recovery, growing population and infrastructure maintenance and expansion focus. The Southwest and North Central regions remain strong in sand production for the gas and oil industry, and the South- east will continue to see benefits of housing and infrastructure projects. POMPO: In 2018, the OTR industry should keep growing. With a better economy, strong companies will con- tinue to buy new tires. The South will particularly have a strong year because of rebuilding after those debilitating storms that hit those areas. All over the country, we will continue to see new subdivisions, more businesses, new roads, which will create demand. If we do start fixing the infrastructure, the economy will grow every aspect of businesses that need tires. Then it's a win-win for all. ROSS: For construction, we see an ongoing investment ahead of projects in 2018 so feel like it is going to be an up year, any global events aside. Aggre- gates is following that trend with the added sense that the road infrastruc- ture projects coming out of 2017 will have an added benefit. KRAUSE: I believe that 2018 is already locked in and looks to be a very good year for the industry. Business cli- mate, for the most part looks strong. Any thoughts of the federal govern- ment providing short-term stimulus has gone. Things like fuel prices and interest rates remain relatively low. If we start to see an uptick in any of these factors, it will tell us what kind of year 2019 will be. As I said we seem to be in a rather normal business cycle and unless something occurs to shake things up Tom Seuss, Komatsu America Tony Spake, Volvo Construc- tion Equipment

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