Trendlines Statewide Monthly Construction Data- May 2024

Pent up January demand Pops in February

Data recently released by the United States Geological Service shows 151,214 tons of cement were shipped to the state in February 2024. The tonnage is a 21% growth over February 2023. January was a very cold and wet month across the state and shut down nearly all construction which was then likely placed in February. The total represents the 4th highest shipments in the past 10 years.

Looking to ready mix volumes, we estimate 559,945 cubic yards of concrete were placed during the month.

While the jump in volumes was great news for producers, we expect ready mix yardage to be flat compared to 2023. The AIA Billing index for April 2024 remained below 50 which forecasts a contraction in commercial construction. The NAHB House Market Index is also in negative territory currently sitting at 45. One bright spot that could bode well for the state is a recent report by the University of Alabama’s Center for Real Estate. The group estimates new home starts are 21% above the first 4 months of 2023.