Ready Mix Yardage Jumps in May
Data recently released by the United States Geological Service shows 149,729 tons of cement were shipped to the state during May 2023. Cement shipments rose by 8.5% over the same period in 2022. The state has seen a decline in three of the first five months of data released; however, the large increase in May shipments brings the state nearly even with consumption through May of 2022.
Looking to ready mix volumes, we estimate 554,446 cubic yards of concrete were placed during the month.
The July residential construction report from the Alabama Center for Real Estate projects new housing starts are down 17.9% versus the first seven months of 2022 (9,035 vs 11,005). This data is not surprising with the rapid rise in mortgage rates. Every major metropolitan area is down across the state. Nationally, new housing starts are down 22%. Commercial construction has remained strong and has helped offset the blow from residential contraction. The AIA Billing Index was 50 in July. Any number above 50 represents a growing market for architect billings on future projects.