Rock to Road

News
2013 Year in Review


January 2, 2014
By Andrew Macklin

January 2, 2014, Simcoe, Ont. – There was no shortage of news to discuss across Canada’s
aggregates and roadbuilding industry in 2013.

January 2, 2014, Simcoe, Ont. – There was no shortage of news to discuss across Canada’s
aggregates and roadbuilding industry in 2013.

The aggregate industry faced increased community opposition
to new pits and quarries despite increased demand, and the use and demand for
recycled aggregates continued to grow. Roadbuilders watched with great
anticipation as provinces determined their priorities for new and renewed
infrastructure, hoping that budgetary constraints wouldn’t hurt their bottom
line.

2013 also brought a large number of new personnel and
technology to the equipment manufacturers that supply the Canadian market.
There were weekly headlines about the newest presidents and CEOs to take the
helm as well as talk of Tier 4 solutions and computer innovations that are
changing the way machines are run. There was also an expansion of the Canadian
distributor networks for many equipment manufacturers, while a few new
companies also broke their way into the national marketplace.

Advertisment

It was also a year of change for us, as we said good-bye to Aggregates and Roadbuilding and ushered
in the new Rock to Road.

Join us as we take a look at 10 storylines that impacted
Canada’s rock to road industry in 2013.

Concrete industry
forms national council

The formation of the Concrete Council of Canada in October
gives the industry a unified voice that will work to “advance the industry’s
leadership in sustainable construction and promote the social, environmental
and economic value of concrete, concrete products and concrete systems in
Canada.”

Both the Ready Mix Concrete Association
of Canada and the Cement Association of Canada introduced new systems to try
and promote concrete as a viable alternative to asphalt road paving.

Here is the original story about the
formation of the council: http://www.rocktoroad.com/content/view/2594/96/

Changes
proposed for Ontario’s Aggregate Resources Act

The review of Ontario’s Aggregate Resources
Act was completed, with the committee releasing a 57-page report containing 38
recommendations on how to fix the legislation in October. The report provided a
mixed bag for aggregate producers in Ontario, including an increase in
extraction fees and increased public participation in the licensing approval
process. However, the recommendations did include the need to educate the
public on modern extraction processes, education that could translate to other
provinces.

ARA committee releases review: http://www.rocktoroad.com/content/view/2608/96/

Major
manufacturers get new bosses

Several of the world’s biggest
construction equipment manufacturers saw new bosses take over the helm of
operations in 2013. Sany, Volvo CE, Hyundai CE, Doosan, PHIL systems, KPI-JCI
and W.S. Tyler all saw changes at the top of the company, while many others
like Terex, Talbert, Metso and Atlas Copco saw changes to senior management.

Of all of the news of staff departures
from across the industry, we think Pat Onley’s departure from Volvo CE in
October grabbed the biggest headline of all of the senior management moves:

http://www.rocktoroad.com/content/view/2595/96/

Chinese
manufacturers looks to Canada

The Chinese market has been slowing
working its way into the North American market, but in 2013, looked to set its
sights on Canada. In April we learned that Sanland Crushing and Grinding
Equipment was going to set up its North American distribution hub in Sudbury,
Ontario. That was followed by news in October that Redhead Equipment in Regina,
Saskatchewan would be the first Canadian distributor of SDLG’s line of wheel
loaders

Sanland moves to Sudbury – http://www.rocktoroad.com/content/view/2378/96/

SDLG partners with Redland Equipment – http://www.rocktoroad.com/content/view/2606/96/

Tier
4 equipment takes over

This year marked the year of Tier 4 in
the heavy equipment industry. Despite the fact that Tier 4 Final engine
technology is not mandatory in Canada, the push for the equipment south of the
border has brought the new emissions reduction technology to our country.

Roadbuilding
investments offer mixed reviews

Across Canada, the news of
infrastructure investments from province to province varied as different
governments battled over the importance of infrastructure spending in the
overall budget. While none of the spending levels were as high as anyone in the
industry would have liked, there was still a solid commitment to road construction
and rehabilitation, with provinces including Saskatchewan and Manitoba grabbing
headlines for major projects, while the news was less positive in Atlantic
Canada, in particular New Brunswick.

Strong infrastructure budget for Saskatchewan: http://www.rocktoroad.com/content/view/2454/96/

Manitoba invests in roads: http://www.rocktoroad.com/content/view/2629/96/

New Brunswick spending hurts roadbuilding industry:  http://www.rocktoroad.com/content/view/2579/96/

U.S. imports rise,
but construction equipment industry sees limited growth

It was a case of good news, bad news for the equipment
manufacturing industry in 2013. In February, news came that Canada saw a 12 per
cent jump in the value of equipment imports in 2012, growth that looked to help
bolster the industry in 2013. However, we then received news in April that the
global construction equipment manufacturing industry as a whole experienced
only moderate growth in the same year, providing concerns about a weak
industry.

U.S. import growth to Canada: http://www.rocktoroad.com/content/view/2340/96/

Marginal global growth for global construction equipment industry:

http://www.rocktoroad.com/content/view/2381/96/

Alberta battles
through difficult times

Give the province of Alberta credit for what they have done
in 2013. Things were going fairly well until mid-June, when days of heavy rain
lead to one of the worst floods in Canadian history. Despite the approximate $6
billion setback caused by the flooding, and significant losses to some
aggregates and roadbuilding operations, the province made significant strides
to improve its road network. There were improvements made to the road network
going in and out of the oilsands region, further work completed on the Anthony
Henday roadway in Edmonton, and a section of Calgary’s Stoney Trail was
completed.

Stoney Trail SE completion: http://www.rocktoroad.com/content/view/2628/96/

Major sales and
acquisitions impact the rock to road industry

The new year started with word that Metso had acquired
U.S.-based Expertune Inc. to assist with its equipment monitoring capabilities
in its crushing and screening equipment. The announcement was followed a few
weeks later by news that McLanahan Corporation had purchased Eagle Iron Works,
and the year of sales of acquisitions was off to the races. Since then we have
seen significant activity with major players like BOMAG, Terex, Volvo and Metso
all making headlines throughout the year.

Metso acquires Expertune Inc.: http://www.rocktoroad.com/content/view/2262/96/

Mclanahan purchases Eagle Iron Works: http://www.rocktoroad.com/content/view/2278/96/

Terex changes the
face of its operation

It may not have grabbed headlines as much here as it did
south of the border, but the changing face of Terex’s operations was perhaps
the biggest story of 2013 in the equipment manufacturing sector of Canada’s
rock to road industry. In February the company announced that it was selling
part of its operations to Brazil’s Fayat Group (BOMAG). That followed news of
major changes made to senior management one month prior, and has since been
followed up by news just a few weeks ago that Terex had sold its truck business
to Volvo. It will be interesting what comes next for Terex in 2014.

Terex sells operations to Fayat Group: http://www.rocktoroad.com/content/view/2319/96/

Terex trucking sold to Volvo: http://www.rocktoroad.com/content/view/2648/96/

That is our look back at the year that was in Canada’s rock
to road industry. We look forward to sharing the news and information that is
important to you in the coming year. Be sure to let us know what you are
working on this year, and any news about your business that we should be
talking about in 2014!