TRG | The Bottom Line – 10/7

Slow and steady, focus on the goal ahead. That’s been the name of the game for the aggregate industry, an industry that has posted positive YOY pricing every year since the end of WWII with the exception of just four years. With rapid inflation impacting the construction and industrial industry, aggregate pricing has accelerated off of its historic low to mid-single digit positive pricing on a percentage basis to up mid-teens (or even higher in select markets). As select raw materials pricing such as steel and aluminum have retreated off of historic highs, how has crushed rock reacted? TRG’s Q2’23 Heavy Materials Survey published this week points to continued steady improvement in aggregate pricing across the board, even with a more tepid outlook in the residential end market. Feedback from the field points to strength in public and non-res end markets more than offsetting current and anticipated resi weakness in key growth markets (i.e., “smile states”). January and April aggregate price increases were successful, and mid-year price increase have shown signs of full acceptance. Fall price increases (the third price increase for the year) now is a mixed bag. Fall aggregate price increases are now being implemented on a market-by-market basis.