A year ago at this time, all of us were looking forward to turning the page on 2020 and welcoming 2021 into our lives.
While 2021 was no cakewalk, there is a lot to celebrate. Yes, some key issues will carry into 2022, but producers and contractors should feel good about the state of the industry as yet another year ends. There certainly is plenty that bears watching.
1. Production steadily continues. Although the U.S. Geological Survey (USGS) is months away from publishing complete 2021 aggregate production totals, production is trending in an upward direction. USGS’s first-half figures, coupled with reports through the third quarter from the industry’s publicly traded producers, support the notion that 2021 aggregate production figures will exceed 2020’s.
2. Trade shows finally returned. Industry trade shows went by the wayside after ConExpo-Con/Agg in 2020, and they were noticeably absent for the first half of 2021. A pushed-back World of Concrete, however, presented an opportunity for those interested to get back to a show in June, and MINExpo International, after a 2020 postponement, made a triumphant return in September.
3. A historic infrastructure bill is here – finally. Admittedly, I did not believe the Infrastructure Investment & Jobs Act (IIJA) would pass after two scheduled votes on the bill were canceled. The outcome of this year’s Election Day, however, seemed to capture the attention of House members who were dug in on tying the infrastructure bill to President Biden’s social spending bill.
The five-year IIJA provides billions of dollars in new funding for transportation projects, and it should give producers and contractors new confidence to move forward on their own investments in 2022 and beyond.
4. Energy prices are on the rise. A decent chunk of the supply chain pain producers are feeling – and will feel in the months to come – is derived from the energy sector. As of Nov. 8, diesel is up $1.34 a gallon from a year ago. And with oil supply down domestically and an increased dependence on foreign sources, the energy environment may not improve anytime soon.
5. Where did all the workers go? Help wanted signs are seemingly everywhere across the U.S., and producers and contractors who had a hard time finding people before the pandemic find themselves in an even more precarious position today.
Extended unemployment benefits, a lack of childcare and virtual learning at home were among the forces causing labor shortages in 2020 and 2021. But those forces were at least somewhat alleviated with the end of the pandemic, begging the question of whether the American worker will return to a workplace near you anytime soon.
Featured photo: Wm. D. Scepaniak