Following two months of decline month over month, cement tonnages shipped to the state of Alabama rebounded in January . The 102,850 tons for January moved the state back over the 100K ton mark for the first time since October 2018. Over the past five years, tonnage for January has averaged 70,749 tons. This month’s output exceeded the running average by over 30K tons. The 102,850 tons was an increase of 18,000 tons over January 2018. The pent up demand from the very wet December plus the large industrial projects ongoing in the state likely drove the bump and will more than likely carry into February tonnage as well.
Looking to ready mix yardage, we estimate that 380,854 yards of concrete were placed in Alabama during the month of January. The yardage represents a 17.6% increase over the same month in 2018. In addition to the previously referenced industrial projects, new home construction remains positive in the state. According to recently released data from the University of Alabama, new home construction is up 9% over 2018. Mortgage rates have been drifting downward recently, which typically results in greater demand of new home construction.
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