Editor’s Note: In the first iteration of the Portable Plants’ Editorial Advisory Board, participants were asked to share their input on several questions including: What are your thoughts on how the first half of the year has been for the industry and your business? What factors are you seeing that are driving this performance? What are your current expectations for the second half of the year?
Overall, we are projected to match the previous year from an aggregate perspective. Volume from a sales perspective seems to be mirroring a similar year-over-year trend.
From a production standpoint, we are finding some efficiencies that will allow us to add inventory capacity as we utilize our manufacturing partners. This should position us to be in a stronger position as we approach the second half of 2024 and beyond into 2025.
From a contracting standpoint, we are blessed with a few projects that are driving an increase in our commercial workload compared to 2023, which was flat compared to 2022. Infrastructurally speaking, we must continue to find ways to be flexible to bid on the projects wherever they may be. Residential activity continues to be on par with the previous year. For us, the key work would be “flat” from all aspects of our company.
The industry seems healthy especially given the election year uncertainty that often happens. Across the board we are seeing acquisition capex being spent as consolidation of the industry continues. Balance sheets for public companies look healthy and companies are signaling that expansion capital is on the table for external and internal growth initiatives.
The other interesting item to watch are the companies that are splitting their stock symbol from European based markets to U.S. based markets – such as CRH and Holcim – and what that access to capital allows them to do from a growth perspective. I think we will see the M&A space continue to stay active, barring any economic/pandemic issue.
For Jones Bros. Contracting, we anticipate a relatively flat year-over-year performance across the many divisions we operate. Aggregates could see a slight increase in the one to three percent range.
We don’t project the growth we have seen during the 2021-2023 timeframe, but we don’t anticipate the decline that has been reported by the major companies in the first quarter. We anticipate that large scale increases in aggregates will taper off to a more historical range as well.
All of us are continuing to tackle the remnants of inflation and looking for ways to control the cost and expense side of the equation. We are continuing to deploy capex measures to grow the business short and long term to enhance our positions in each market, which is a good sign that companies of all sizes are signaling to the market.
From a regulatory standpoint we continue to work through the powered haulage and silica rulings. We are seeing issues with permitting across the board and on a state level, we are hearing initiatives that would speed up the permit modification process, but there haven’t really been any details into what any revamped process will look like in the immediate future.
From a portable plant manufacturer standpoint, we operate a few different brand names and most companies have assets to purchase with reasonable lead times. The biggest issue we see is service for portables. Many companies appear to be shorthanded and are working to grow the next technicians through organic training and continuing education. Companies appear to be quicker than years past to source parts, plant upgrades and assist producers to minimizing downtime.
Jason Waddell is group manager of aggregate operations at Jones Bros. Contractors in Nashville, Tennessee.
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