Ready Mix Yardage pulls back in September
Data recently released by the United States Geological Service shows 142,244 tons of cement were shipped to the state during September 2023. Cement shipments contracted by 7.1% from September 2022 totals and are now 1.1% below 2022 totals after nine months. The state has seen a drop in six of the first nine months of reported tonnage.
Looking to ready mix volumes, we estimate 526,730 cubic yards of concrete were placed during the month.
The University of Alabama’s Center for Real Estate estimates new home starts are off by 11.8% compared to the first 10 months of 2022. In a rural state like Alabama, new home starts represent a large portion of all concrete placed in the state. While interest rates have slowly fallen, we expect residential construction to remain slow. The home builder sentiment sits at 37, far below the positive number of 50 reflecting that homebuilders share the same concern. Commercial construction has remained relatively strong and has offset the slowdown in residential construction.