Rock Products

JAN 2019

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

Issue link: https://rock.epubxp.com/i/1067915

Contents of this Issue

Navigation

Page 36 of 101

www.rockproducts.com ROCK products • January 2019 • 33 815,000 (Dodge basis). There will be a slight decline in homebuyer demand as the result of higher mortgage rates, diminished affordability, and reduced tax advantages for home ownership as the result of tax reform. •  Multifamily housing will slide 6 percent in dollars and 8 percent in units to 465,000 (Dodge basis). Market funda- mentals such as occupancies and rent growth had shown modest erosion prior to 2018, which then paused this year due to the stronger U.S. economy. However, that erosion in market fundamentals is expected to resume in 2019. •  Commercial building will retreat 3 percent, following 2 percent gains in 2017 and 2018, as well as the substan- tial percentage increases that took place earlier. While 2018 market fundamentals for offices and warehouses are healthy, next year vacancy rates are expected to rise as the economy slows, slightly dampening construction. Hotel construction will ease back from recent strength, and store construction will experience further weakness. •  Institutional building will advance 3 percent, picking up the pace slightly from its 1 percent gain in 2018 which itself followed an 18 percent hike in 2017. Educational facilities should see continued growth in 2019, supported by funding coming from numerous school construction bond measures. Healthcare projects will make a partial rebound after pulling back in 2018. Airport terminal and amusement-related projects are expected to stay close to the elevated levels of construction starts reported in 2017 and 2018. • Manufacturing plant construction will rise 2 percent fol- lowing the 18 percent jump that's estimated for 2018. The recent pickup in petrochemical plant projects should con- tinue, and cuts in the corporate tax rate from tax reform should encourage firms to invest more in new plant capacity. • Public works construction will increase 4 percent, reflect- ing growth by most of the project types. The omnibus federal appropriations bill passed in March provided greater funding for transportation projects that will carry over into 2019, and environmental-related projects are getting a lift from recently passed legislation. •  Electric utilities/gas plants will drop 3 percent, continuing to retreat after the exceptional amount reported back in 2015. New generating capacity continues to come on line, dampening capacity utilization rates for power generation. The 2019 Dodge Construction Outlook was presented at the 80th annual Outlook Executive Conference held by Dodge Data & Analytics at the Gaylord National Resort and Conven- tion Center in National Harbor, Md. Aggregates Production Aggregates producers are moving full-steam ahead, with or without a new federal infrastructure bill. An estimated 694 million metric tons (Mt) of total construction aggregates was produced and shipped for consumption in the United States in the third quarter of 2018, an increase of 5 percent compared with that of the third quarter of 2017. The estimated produc- tion for consumption in the first nine months was 1.77 billion metric tons (Gt), an increase of 5 percent compared with the prior-year period, according to Jason Willett, crushed stone commodity specialist for the U.S. Geological Survey (USGS). The estimated production for consumption of construction aggregates in the third quarter increased in all nine geo- graphic divisions compared with that sold or used in the third quarter of 2017. The five leading states were, in descending order of produc- tion for consumption, Texas, California, Pennsylvania, Ohio and Minnesota. Their combined total production for con- sumption in the first nine months of 2018 was 497 Mt, an increase of 6 percent compared with the prior-year period. An estimated 405 Mt of crushed stone was produced and shipped for consumption in the United States in the third quarter of 2018, an increase of 4 percent compared with that of the third quarter of 2017. The estimated production for consumption in the first nine months of 2018 was 1.05 Gt, an increase of 3 percent compared with the prior-year period. The estimated production for consumption of crushed stone in the third quarter of 2018 increased in six of the nine geo- graphic divisions compared with that sold or used in the third quarter of 2017. The five leading states were, in descending order of produc- tion for consumption, Texas, Pennsylvania, Florida, Ohio and Illinois. Their combined total production for consumption in the first nine months of 2018 was 337 Mt, an increase of 4 percent compared with that of the same period of 2017 and represented 32 percent of the U.S. total. The estimated U.S. output of construction sand and gravel produced and shipped for consumption in the third quarter of 2018 was 289 Mt, an increase of 8 percent compared with the prior-year period. The estimated production for consumption in the first nine months of 2018 was 720 Mt, an increase of 7 percent compared with that of the same period of 2017. The estimated production for consumption of construction sand and gravel in the third quarter increased in all nine geo- graphic divisions compared with that sold or used in the third quarter of 2017.

Articles in this issue

Links on this page

Archives of this issue

view archives of Rock Products - JAN 2019