SPECIAL REPORT:  

STATE HIGHWAY PAVING, JANUARY 2017

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Concrete’s market share in paving activity, as reflected in Oman data, has increased only modestly during the past two years. Oman data refers to state design bid build data that reflects only about 20% of total paving activity. The potential for stronger growth in market share in the years ahead is good.  Concrete usage in paving is often correlated to its relative price to asphalt as well as longer term paving strategies.  The relative price of concrete to asphalt is expected to move mildly in favor of concrete in the years ahead.  More importantly, the federal government’s commitment to FAST as well as the potential additions to infrastructure spending by the Trump administration both point to the possibility of longer term paving strategies. 

According to the latest Oman data, 2016 concrete volume market share for the 2nd quarter was 12.7 percent, bringing the year-to-date share to 14.3 percent.  Through the first half of 2015, volume share was only 13 percent.  Due to a large fourth quarter in which 35 percent of the year’s total cubic yards were let, year-end shares bounced back up to 15.2 percent.  We expect a similar rebound for the remainder of 2016 as the second quarter has frequently been the lowest in terms of quarterly volume share.  Despite the volatility from quarter to quarter, the average share has hovered around 15 percent the last four years.