We are already a few months into 2023, but that doesn’t mean there isn’t so much more to be excited about this year! There is a great outlook for the aggregates industry, as many sources are seeing positive first quarters and are looking forward to even more growth throughout the rest of the year.
Over the last few years, we’ve seen an increase in pricing for most aggregate materials, and that’s still the case, but we at Kemper Equipment have also seen some other trends that we are excited about. Learn more about what’s already happened and what we predict we will see in the coming months.
What’s Happened in the Industry So Far in 2023?
- Pit & Quarry’s annual roundtable took place in January, where a record number of attendees gathered to discuss the previous year and the upcoming year within the industry. Our President Greg Donecker was in attendance to contribute information on the advantages of rubber truck bed liners.
- CONEXPO-CON/AGG happened from March 14-18. This is the largest trade show in North America, and it happens once a year. A massive gathering of professionals in our industry showcase the latest in equipment, products, services, and technologies.
The turnout to both events shows an increased interest and engagement in the industry that will continue throughout the year as new technologies are developing and being introduced and product demand increases.
What Do We Have to Look Forward to in the Aggregates Industry in 2023?
Take a moment to read about the aggregate market analysis for 2023. There are some common themes that companies within our industry are focusing on for the rest of this year to keep up with a profitable first quarter.
Increased demand for Aggregate, Construction, and Related industries
As our president at Kemper Equipment, Greg Donecker, highlighted in his December 2022 Pit & Quarry article, “A number of industry companies experienced double-digit growth [in 2022]. Passage of the Infrastructure Investment & Jobs Act last November created a path for continuous aggregate demand in most regions needing roads, highways, bridges, and utility infrastructure systems.” This demand is likely to continue to increase as the year progresses.
Utilizing New Equipment for Labor Shortages
Despite the global aggregates market size, the industry still has a widespread labor shortage. For some, solving this issue will look like adding overland conveyors to their operations. Still, for others, it will look like purchasing additional equipment to automate their entire process further.
Unfortunately, despite projected growth and increased demand for our industry, we are still seeing product shortages and delays. These issues will likely remain unresolved throughout the industry, though many producers are finding alternative solutions for now.
Reducing Costs through Liners and Equipment Maintenance
In a February 28th article for Pit & Quarry, Donecker said, “Processing plants and wear parts are being purchased to reduce costs. Similarly, engineered wear-lining systems constructed of rubber, ceramic rubber, and urethane are being installed to extend the time between maintenance.”
By implementing more linings, producers can ensure their equipment has a longer life. When materials are moved around or transported, they can cause wear and tear to the equipment doing the moving. This can happen when they’re in truck beds, hoppers, bins, or silos. Even slurry boxes, sump tanks, feed boxes, transfer chutes, conveyors, belt feeders, and processing machineries like crushers and screens can get damaged. Fitted liners help minimize the damage and need for replacements or maintenance on the equipment. Liners are likely to become a valuable addition to many operations.
Value-Added Processing Systems
Some producers are reaching out to knowledgeable suppliers because they are hoping to explore new technologies for their plants. These new systems will take previously considered lower value-added reserves and produce a higher price-per-ton product.
A Greater Focus on Safety
Within the first quarter of the year, 14 miners died on the job. These fatalities are higher than in the first quarter of last year and come after the Mine Safety and Health Administration (MSHA) issued a pattern of violations (POV) notice for a Louisiana Morton Salt operation. We expect an increase in safety equipment sales and training to better equip miners and those within the industry with the tools to keep themselves and their employees safe.
Do You Want to Get Ahead of the Aggregates Industry Outlook for 2023?
The aggregates industry outlook for 2023 is positive overall, but as the industry shifts and changes, you want a resource to help guide you and provide you with the equipment knowledge of the future. Working with our friendly expert team at Kemper ensures that you have access to the industry’s best parts, as well as unbeatable knowledge of all things in the industry. Whether you need help training your team on maintaining your machinery or help with designing and building an entirely new operation for your specific application, contact us today to get started!