Ready Mix Yardage Slips from June Totals
Data recently released by the United States Geological Service shows 131,462 tons of cement were shipped to the state during July 2023. Cement shipments held steady in relation to 2022 totals but contracted over 11% from June tonnage. The state has seen a decline in five of the first seven months of data released; however, the state is only .9% behind the first seven months of 2022.
Looking to ready mix volumes, we estimate 486,804 cubic yards of concrete were placed during the month.
Most all members have seen a decline in residential volumes as interest rates now sit above 8%. Data released by the Alabama Center for Real Estate estimated new home starts are off 15.5% through August 2023 compared to 2022. Of the top 12 largest metropolitan areas in the state, 8 have seen double digit decline in home starts. Birmingham has fared the best with only a 3.2% decline. Commercial construction has offset the decline but the AIA billing index in September sits at 46.2 in the south. Anything less than 50 forecasts a slowdown in commercial projects.