Road Work Ahead

During the current economic downturn, no industry has proven recession-proof and markets for building materials have been among the hardest hit of all.

By nearly all measures, what had been a slowdown in the residential building market became a construction industry-wide phenomenon in the second half of 2008, resulting in a further decline in demand for building materials, including aggregates.

Data monitored by the Association of General Contractors (AGC) and its chief economist Kenneth Simonson, tracks the cost of construction materials and components.

For 2008 in its entirety, very few materials went down in price during the 12-month span, thanks to a healthy first half of the year. The exceptions included diesel fuel, aluminum extrusions and lumber—the latter two a reflection of the woes in the residential construction market.

But materials price declines much more commonly appear when pricing is looked at for just the fourth quarter of 2008 and January of 2009.

In that four-month period, the price of asphalt at the refinery dropped a staggering 48 percent while prices paid for asphalt paving mixtures declined more than 14 percent.

Concrete products during that period retained their value, with ready-mixed concrete even growing in price by 4 percent. Similarly, crushed stone, gravel and sand during the same period managed to gain 1.6 percent in value.

Ideally, this means companies that recycle concrete, asphalt, brick and block can supply an infrastructure segment that will stay vibrant even in the downturn.

An analysis of the construction industry in 2008 by McGraw-Hill Construction revealed the split personality nature of that year: Contracts for new residential construction were down 39 percent in value while those for public works and utility construction gained 4 percent in value.

In 2008, the non-residential construction segment held steady, but forecasts about a slowdown in this segment could diminish work for demolition contractors and accompanying on-site concrete crushing jobs.

The companies included on the 2009 version of the 20 Largest Recycled

Identifying the companies who belong on the 20 Largest Recycled Aggregates Producers in the U.S. list continues to present challenges and can raise as many questions as it answers.

For purposes of this list, figures for asphalt that is recycled by specialized in situ paving machinery were not included. Asphalt crushed at fixed plants and portable job site units was included, however.

Soliciting information can be another challenge. The good news is that many companies who have become familiar with the process understand that our intention in putting together the list is to recognize the most successful operators in this recycling segment. It takes hard work by a lot of people to put together winning bids, set up crushing plants, and produce marketable recycled aggregate products, and our hope is that a place on this list provides recognition for the employees of listed companies.

Moving what amounts to mountains is the task of these leading companies, and those on this list may have moved several mountains in 2008.

The current decade has seen an overall trend toward more recycled aggregates produced.

The cyclical nature of the construction industry may restrain the operating hours for crushing plants in 2009. But the wisdom of giving concrete and asphalt a second life as a recycled aggregate is now well established, providing a stable base for the companies on our 2009 list.

Click here to view the 20 Largest Recycled Aggregates Producers list.

The author is editor in chief of Construction & Demolition Recycling and can be contacted at btaylor@gie.net.