We were just talking about the weather: I don’t know what ‘normal’ is anymore. We’ve been in a drought the last couple of years. It was great for the rock quarry business. It was terrible for sand on the Missouri River.
You take the good with the bad. 2024 was not off to a great start in the Midwest, but we’re hoping we catch back up while that backlog is there and that the weather gets better.
CODY LADD (KRAEMER MINING & MATERIALS): Kraemer had a record year and volumes, but we had tax in Minnesota. Looking at our tax data, we had a down year as far as I was concerned – but we had a record year in pricing. The aspect that I really got across with my team is that every dollar you make in revenue without changing cost goes straight into your valuation.
2024 will be another record year due to the same factors. We are not super worried about the economy or the market due to pricing.
STEWART PETROVITS (ROUTE 82 SAND & GRAVEL): We think 2024 will be flat, which, for us, is a win as long as margins are strong. In 2023, we saw the supply chain improve – particularly for big iron or highway trucks. Now, though, it seems like it’s going in the opposite direction again.
Truck suppliers were telling us in December that if you order now, you will receive it in the first quarter. Now, they’re out until about October or November. Well, that’s a whole season.
We’re seeing steady improvement in regular parts, motors and beltings – things like that. But big purchases – mechanic trucks or F250-size pickup trucks – are almost impossible to come by. So, you settle.
Plus, everything costs 30 or 40 percent more. A highway truck that we were paying $187,000 for is now $244,000 before trade. So that’s the only thing I’m concerned about. It’s not even so much on the cost side, but just getting the equipment into the fleet in time to take advantage of 2024.
WADDELL: I have to back up Stewart. It seems like the lead times on portable crushing equipment, big crushing equipment, bearings, belts and various things are getting better. Our downtime is getting minimized because we’re able to get the repair parts faster.
But when it comes to mobile equipment – specifically rolling stock – we are starting to see it swing the other way. I’ve seen it on things like engineering rock boxes. Companies are already out into 2025, and they’re full.
MICAH TYSVER (CRUSH MODE): I’m a mobile equipment dealer and an aggregate consulting company. From what I’ve experienced, as well as from what friends in the dealership world are telling me, if you would look at the dealership lot a year ago, it was almost empty. There was no equipment or very little available.
What we’re seeing now: Everybody kind of ordered heavy a year ago to make sure they have excess inventory. Dealers are carrying more inventory. So, if there’s something you need, it’s likely going to be available in one dealership or another – or all of them.
As far as lead times, we’ve seen that cut in half or better in the aggregate equipment world.
Related: What producers, manufacturers are forecasting for 2024 (Part 1)
Featured Photo: PamElla Lee Photography
