Friday, September 30, 2005

Having a blast

Yes, they do more than create loud explosions. The International Society of Explosives Engineers recently added newly designed Education Foundation web pages to its main homepage. The new pages highlight the Society and the Foundation's commitment to creating an exceptional array of programs, services, and scholarship offerings, providing members with better access to Foundation information, an opportunity to participate more fully, and to more easily contribute to the education activities of the Society. ISEE, based right here in Cleveland, is a great resource. Your comment?

Wednesday, September 28, 2005

Cat flexes its muscles

It may not be turning into a butterfly, but Caterpillar is flexing its muscles. The company said unprecedented demand for mining equipment has prompted the company to "significantly increase production" and launch a new type of haul truck. The company expects to deliver the first group of the 793D trucks to its customers in October. There are those that say, "As Caterpillar goes, so goes the industry," so an increase in production is indeed a strong signal. Your comment?

Tuesday, September 27, 2005

Environmental Eagles

Aggregates operations don't do nearly enough to strut their environmental credientials to the public. NSSGA is giving five companies the opportunity to do just that. Five aggregates operations from around the United States and Canada have received the prestigious Environmental Eagle Gold Award for Excellence from the Association in recognition of their superior performance as environmental stewards during the past year. They are: Vulcan Materials Co.'s Helena Quarry in Helena, Ala. and Jack Quarry in Petersburg, Va.; Lafarge North America's Petersburg Quarry in Petersburg, Ohio; Hedrick Industries' Lake Norman Quarry in Stanley, N.C.; and Dufferin Aggregates' Milton Quarry in Milton, Ontario, Canada. Congratulations to these operations. Now go forth and make hay. Your comment?

Monday, September 26, 2005

Dialing for dollars

Louisiana's Senators, Mary Landrieu (D) and David Vitter (R), may be from opposite sides of the aisle, but are coming together to forge a bailout package for their hurricane-battered roads and bridges. The two senators have proposed legislation to provide about $250 billion in federal aid to help their state rebuild from Hurricane Katrina. The 10-year plan includes about $180 billion in direct federal spending. The rest would be the cost of various tax breaks. But all of sudden, sympathy for Louisana is getting conditional now that real costs are on the table. Sen. Tom Coburn (R-Okla.) and several other GOP colleagues want at least some of the federal hurricane relief spending to be offset with spending cuts. Among their suggestions: a 5% across-the-board cut in discretionary spending other than defense and homeland security; and rescinding $24 billion in earmarked highway projects out of SAFETEA-LU. The Landrieu-Vitter package would draw most of its funds from federal appropriations, but they also are seeking 50% of the revenue from oil and gas leases off their state's coast. Those revenues would go for restoration of coastal wetlands and barrier islands as well as infrastructure. I know two things: 1) the cost of reconstruction is going to be huge and 2) the job has to get done. Your comment?

Friday, September 23, 2005

The big price spike

Much of what was discussed at StoneSummit 2005 with regard to oil and gas prices, and material costs, was reiterated by Ken Simonson, Chief Economist for the Associated General Contractors of America. He believes construction materials prices will rise at least 10 percent next year, instead of the six-to-eight percent rise he had expected before Hurricanes Katrina and Rita. “Contractors can expect increased diesel fuel costs to operate off-road equipment such as bulldozers, tower cranes and trucks, Simonson says. "Fuel cost increases will also show up as freight surcharges on the thousands of deliveries to a typical construction job site. Most of the increased costs in construction materials throughout the country will result from a reduction in oil and natural gas production, and not from higher demand for those materials for the reconstruction projects in the devastated areas. Lost production and imports due to the storm will result in higher prices and/or supply disruptions for PVC pipe, other construction plastics, tires for large off–road equipment, galvanized steel, gypsum products and cement, among other products." It ain't gonna be pretty, folks. Your comment?

Thursday, September 22, 2005

Roundtable a success

Hello again from Marriott's Camelback Inn resort in hot -- very hot -- Scottsdale, Arizona. We just finished StoneSummit 2005, Pit & Quarry's annual roundtable event, a day-long discussion of aggregates-industry issues. The conversation was dominated, as you might imagine, by the economic impact of high oil and gas prices, hurricane damage and reconstruction, and the passage of SAFTEA-LU. The group also discussed the pitfalls of doing business in a hot market; the cement shortage, labor issues, equipment-buying factors, the evolution of crushing, ConExpo-Con/Agg, inventory control and a host of other topics. This was certainly one of the best roundtables we have held, with great participation by the attendees and a wide variety of ideas and opinions -- some controversial -- tossed onto the table. A big thanks to all who attended. Look for a full report in an upcoming issue of Pit & Quarry. Your comment?

Wednesday, September 21, 2005

Greetings from Arizona

Greetings from hot and sunny Arizona, where the Pit & Quarry staff has gathered along with about 30 industry suppliers, producers and distributors for StoneSummit 2005, our annual roundtable event. We expect to have a great discussion of industry issues, and I'll post a brief report after the action goes down tomorrow. Your comment?

Tuesday, September 20, 2005

But is he a stickler for safety?

Is someone finally coming to MSHA's rescue? The word percolating through political circles is that the president intends to nominate Richard Stickler of West Virginia to be Assistant Secretary of Labor for Mine Safety and Health. Mr. Stickler served as Director of Pennsylvania's Bureau of Deep Mine Safety, and was involved in the Quecreek mine rescue in 2002. Earlier in his career, he worked for Beth Energy Mines, Inc. for thirty years. During that time, Mr. Stickler held a number of positions including Manager, Superintendent and Shift Foreman. He received his bachelor's degree from Fairmont State College. I doubt he will be as controversial as departed MSHA chief Dave Laurisky. Your comment?

Monday, September 19, 2005

Anarchy in the U.K.

More news from over the pond: "If Government wants to ensure sustainable future supply of aggregates, it needs to get its act together and produce a coherent strategy," says the new Chairman of the U.K.'s Quarry Products Association, Lynda Thompson. Commenting on the Government's current consultations on future planning policy for Aggregates (MPS1 - Aggregates Annexe, produced by the ODPM), Mrs Thompson said that "the Consultation is yet another example of short term policy thinking that lacks any sense of strategy. The long term supply of aggregates and quarry products should be a key strategic issue for Government. These materials are vital for our long term national interest, and the UK is very fortunate in having extensive resources of rock, sand and gravel. If we are serious about building sustainable communities, we need sustainable supplies of aggregates for the long term." What is interesting is that the government in the U.K. has an aggregates policy at all, short-sighted as it may be. I'd suggest that our government establish an aggregates policy, but with our luck, it would be short-sighted as well, and be developed by someone like the former head of FEMA. Your comment?

Friday, September 16, 2005

What does it all mean?

According to a special Hurricane Katrina report from Reed Construction Data detailing the implications for the construction industry as a whole, the disaster will impact three main areas the hardest: 1) the change in construction activity in the hurricane-impacted area. In other words, activity will increase there. Will it decrease elsewhere? 2) price fluctuations in the national market due to materials going to the Gulf Coast. Lumber, roofing, drywall, cement, stone and other commodities will increase in price. 3) The overall changes in the national economic picture that in turn, will impact the construction industry. This includes interruption in oil and gas production, barge shipping, retail prices rising and other factors. We may not know the cumulative economic fallout for some time. Your comment?

Thursday, September 15, 2005

Second quarter results are in

The USGS has spoken. What did it say? It said second quarter, and first-half numbers are in. In a nutshell, total aggregates production was up, despite sand and gravel production lagging a bit behind. An estimated 793 million metric tons of aggregates were produced and shipped for consumption in the United States in the second quarter of 2005, an increase of 4 percent compared with the same period of 2004. The estimated output of total aggregates produced for consumption in the first 6 months of 2005 was 1.3 billion metric tons, a 4.1 percent increase compared with the same period of 2004. An estimated 457 million metric tons of crushed stone were produced and shipped for consumption in the United States in the second quarter of 2005, an increase of 6.5 percent compared with the same period of 2004. The estimated output of crushed stone produced for consumption in the first 6 months of 2005 was 755 million metric tons, a 6.2 percent increase compared with the same period of 2004. The estimated U.S. output of construction sand and gravel produced and shipped for consumption in the second quarter of 2005 was 332 million metric tons, a small decrease compared with the same period of 2004. The estimated output of construction sand and gravel produced for consumption in the first 6 months of 2005 was 536 million metric tons, a slight decrease compared with the same period of 2004. The estimated portland cement consumption increased by 7.2 percent in the second quarter of 2005, and by 7 percent in the first 6 months of 2005, compared with the same periods of 2004. Your comment?

Third of the Big Three

This just in from over the pond. Hanson Aggregates North America has released its interim report (they don’t do quarters like their U.S. counterparts), and the company reports a marginal decline in aggregates volume, which is curious given the robust reports from its competitors. The company attributes declines to bad weather in California, Georgia and Arizona earlier in the year. On the bright side, profit levels increased for the company in all four U.S. regions, and average selling prices increased 6 percent for aggregates and 19 percent for cement. Spot on! Your comment?

Wednesday, September 14, 2005

Garvee Bonds

Garvey may have been that guy who used to play for the Dodgers, but GARVEE is something much different. The North Carolina Aggregates Association reports that Grant Anticipation Revenue Vehicle (GARVEE) bonds have been approved in their state. More than a dozen states already use the procedure, which Congress authorized in 1995. It allows states to issue special bonds to pay for federally approved transportation projects. Because the bonds are repaid with future federal money, they don’t effect the state’s credit or impose an ordinary state debt. Sort of like using a Visa card to put a highway on sale. Your comment?

Tuesday, September 13, 2005

Not hiring

I guess no one is having trouble hiring and keeping good people at their companies these days, judging by the meager attendance at NSSGA’s recent Aggregates Industry Workforce Conference. Pit & Quarry Associate Editor Troy Sympson was there, and reports that many of the topics discussed – multi-lingual employees, applicant screening, hiring from within, hiring new mining engineers – are critical to the success of aggregates operations. Look for a full report in the next issue of Pit & Quarry. Your comment?

Monday, September 12, 2005

Go, Boh!

The governor of Louisiana, Kathleen Babineaux Blanco, said a mouthful when she said, “Repairing our roads and bridges is a critical step in helping Louisiana citizens get back to normal.” There will be a lot of repairing to do. The state of Louisiana just awarded a contract to repair the damaged I-10 twin-span bridge across Lake Pontchartrain, the world's longest overwater highway bridge, to Boh Brothers Construction Co. of New Orleans, the low bidder on the job. Work began immediately and will continue 24 hours a day, seven days a week. Officials estimate traffic will be back on the Twin Spans within 45 days. I think that is wishful thinking, based on the pictures I saw of the bridge. But I think I speak for many when I say: go, Boh! Your comment?

Friday, September 09, 2005

Sustainable development

There is an industry wide effort, that is gaining steam all the time, to pursue sustainable development in business operations. Caterpillar is the one of the most prominent companies on the sustainability radar. But now, producers are getting in on the action. The Industrial Minerals Association-North America has developed a sustainable development position paper and web site. I applaud its efforts to promote sustainable development as a business practice and encourage producers to adopt these actions. Your comment?

Thursday, September 08, 2005

Reduce tariffs?

This just in from the too little, too late department: The Bush administration announced it has made a preliminary determination to reduce the penalty tariffs being imposed on Mexican cement giant Cemex from the current 54.97 percent to 40.54 percent. The lower rate will not go into effect until a further investigation is completed Dec. 7. Ken Simonson, chief economist for Associated General Contractors of America, called the proposed reduction in tariffs for Cemex minuscule in the face of the increased demand for cement in this country to "meet the terrible need for cement and other construction supplies in the Gulf region." Of course, the Southern Tier Cement Committee, and other organizations oppose any reduction in tariffs on the grounds that Mexico continues to dump cement in the U.S. market, which makes the U.S. more dependent on imported product. The battle goes on. Your comment?

Wednesday, September 07, 2005

User fee dilemma

Congress is trying to kill us yet again. The National Stone, Sand & Gravel Association has voiced concern over efforts by states and members of Congress repeal or suspend the gasoline user fee, which will negatively impact funding for highways and public transit systems. Cutting the user fee will have an adverse effect on our nation's transportation systems and will not result in direct savings to consumers as intended, according to NSSGA president and CEO Joy Wilson. "In a time when our nation is dealing with the cleanup of the worst natural disaster in modern history, unobstructed access to and within our nation's cities is critical. Funding for both highway and public transit systems should be a top priority of our government, on the state and national levels, or the whole country begins to crumble—education, commerce, defense, environment, energy, services... everything," said Wilson. I couldn't agree more. Your comment?

Tuesday, September 06, 2005

Producers reach out

Aggregates operations always step up during times of national emergency. Maryland's Chaney Enterprises wasted no time in kicking off its Hurricane Katrina relief efforts. The company's employees will roll up their sleeves Sept. 23 by sponsoring an American Red Cross blood drive. Chaney employees, family members, friends and the general public are invited to participate in the event that will include a baked-goods sale. To schedule a time to donate blood, please call 301-632-3001. Money raised from the purchasing of the baked goods and monetary donations will be matched by the Eugene Chaney Foundation, the philanthropic arm of Chaney Enterprises, and will go to providing much-needed relief to the survivors of Hurricane Katrina. Major kudos to Chaney Enterprises. (If your company is organizing a Hurricane Katrina relief effort, please let me know.) Your comment?

Friday, September 02, 2005

Labor Day Wishes

On this Labor Day weekend, let us pause to remember those who labor in the workplace, but let us also remember those who labor on behalf of the thousands of people left homeless by Hurricane Katrina. Have a safe holiday. This blog will be back next tuesday.

Thursday, September 01, 2005

Aggregates industry theme song

There are days when I wake up and think, what the aggregates industry needs is a good theme song. You know, a little tune that represents the industry. Well, little did I know, we've had one for more than 40 years. The song is called Rocks and Gravel, and it was written in the early 1960s by Bob Dylan. Sample lyrics: "Takes rocks and gravel, baby, make a solid road, make a solid road./Takes rocks and gravel, baby, make a solid road, make a solid road./Takes a good woman mama, to satisfy my weary soul." Okay, I'll go for that sentiment. You can hear the song on the newly released CD, Live at the Gaslight, 1962. It's available exclusively at Starbucks, which is great if you need one more cup of coffee for the road. Your comment?