Thanks for asking.
95% of all U.S. 2.4 million miles of paved roads and highways are
paved with asphalt, 5% with concrete. Virtually 100% of commercial
(non-public-works) pavement is asphalt. Cost savings are realized when
either surface is maintained as part of a pavement preservation
program.
"...Overlay techniques are the most frequently cited treatments,
followed by single course chip seal, crack treatments, and single
course micro-surfacing. Slurry seal, fog seal, paver-placed surface
seal, scrub seal, and cape seal are least widely used."
Survey Results Summary
Pavement Preservation in the United States
American Association of State Highway and Transportation Officials
http://leadstates.tamu.edu/pp/survey/use.stm
Funds spent annually by U.S. Federal and State agencies on
Preventative Maintenance/Pavement Preservation
Dollars (Millions) # of Agencies
------------------ -------------
Less than 10 6
10-25 12
25-50 5
50-75 4
Over 75 8
Federal Highway Administration - Focus
http://www.tfhrc.gov/focus/apr00/states.htm
Findings from a recent project study showed that repairing HMA
pavements on major highways cost an average of $39,000 per lane mile,
three times less than the average cost of concrete?s $120,000 per lane
mile. Workers spent nearly eight days rehabilitating one lane mile of
concrete, compared to less than three days for HMA pavement.
Asphalt Alliance Lifecycle Costs
http://www.asphaltalliance.com/upload/focus_lifecycle-PR.pdf
It is difficult to separate out materials and labor cost for pavement
preservation products, in part, due to the nature of the chemicals,
and the application process, many of the products are not sold for
independent use. They are sold strictly as part of a rejuvenation or
preservation project and must be applied by the specially trained or
certified contractors, and/or authorized distributors who sell the
products.
See: How is Reclamite Applied?
CAM Reclamite Preservative Seal
http://www.camllcil.com/rec.htm#How%20is
U.S. Census Industry Values by Year
----------------------------------------------------------------------
Total value of shipments ($1,000)
Asphalt paving, roofing,
& saturated materials manufacturing
2001 11 724 093
2000 11 966 875
1999 11 078 822
1998 11 673 174
1997 10 981 761
Asphalt paving mixture & block Mfg
2001 6 486 095
2000 6 454 655
1999 5 896 836
1998 6 323 135
1997 5 887 180
Excerpted from Page 25
Industry Estimates Annual Survey of Manufacturers 1997-2001
http://www.census.gov/prod/2003pubs/m01as-1.pdf
Pavement Industry Issues
----------------------------------------------------------------------
Federal Funding
---------------
A substantial portion of funding for Pavement Preservation and
Preventative Maintenance in the U.S. is provided by federal funds.
Such funds are authorized under TEA-21 (Transportation Equity Act for
the 21st Century), which is curently operating under a two month
temporary extension until the end of April, 2004. Industry trade
groups believe it vital that TEA-21 funding be extended at a level no
less than the $318 billion allocated by the six year transportation
bill passed by the Senate. "House Speaker Hastert (R-IL) reportedly is
seeking to find some compromise between the $318 billion Senate-passed
level and the $270 billion level the Bush Administration has insisted
is "responsible." Trade associations contend that $318 billion is
needed in order to meet ongoing funding requirements of federal and
state agencies engaged in construction and preservation of the
nation's pavement inventory.
AASHTO Issues - Reauthorization Update
http://transportation1.org/aashtonew/?sid=139
Rising Petroleum Prices
-----------------------
Asphalt and asphalt treatment products are petroleum-based. With the
cost of petroleum on the rise, costs of manufacturing are also rising,
along with the cost to the customer. Although preservation product
manufacturing costs and sale prices may also rise, increase in the
price of petroleum products will increase the value of pavement
assets/inventories, and thereby, the value of preservation vs.
replacement.
Asphalt Trade Associations and Price Indices
----------------------------------------------------------------------
Argus Asphalt Report (2003) (.pdf format)
http://www.argusonline.com/wwwroot/pa-html/products/ArgusHome/samples/asphalt.pdf
California Asphalt Price Index
http://www.dot.ca.gov/hq/esc/oe/asphalt_index/astable.html
Asphalt Trade Organizations - Links from these two blanket
organizations offer additional links to a number of subsidiary state
organizations. I haven't found market share info, even in press
releases, in any of them -- byproduct of "government as the primary
customer" focus of this industry, perhaps.
Foundation for Pavement Preservation
http://www.fp2.org/
National Asphalt Pavement Association
http://www.hotmix.org/
Google Directory - Pavement Associations
http://directory.google.com/Top/Business/Construction_and_Maintenance/Materials_and_Supplies/Site_Construction/Pavement/Associations/
Industry Press Release
----------------------------------------------------------------------
"In the United States and around the world, cold asphalt emulsions are
increasingly acknowledged for their extension of pavement service life
and versatility in rehabilitation of distressed highways, " said
Benjamin F. Ward, Jr., President, Specialty Chemicals Division. "Our
expanded asphalt emulsifier production capacity and related
proprietary microsurfacing and slurry seal technology give us a unique
position in pavement-preservation markets, as well as in the emerging
market for use of cold asphalt emulsions in new road construction."
MeadWestvaco
http://www.westvaco.com/news/030502.htm
International Pavement Preservation Technologies Report
----------------------------------------------------------------------
Federal Highway Administration
Pavement Preservation (Funding) in France, South Africa and Australia
http://www.international.fhwa.dot.gov/paveprestech/chapter2.htm#funding
Pavement Preservation Supplies Franchise for Sale (2003)
----------------------------------------------------------------------
The company is a premier supplier of sealcoats and pavement
maintenance products and equipment for the Rocky Mountain region.
Sales revenue (presume 2002): $1,750,000 Net profit: $297,500
http://www.franchisesales.com/global-franchises/aspx/public/displayAdvert171129.aspx
----------------------------------------------------------------------
You asked "But looking at budget figures, do you have any estimates or
can make any estimates to say... X% would be materials, Y% would be
labor costs, etc."
I'd be guessing, rather than estimating. I've looked at a number of
bids/contracts (more than 25) awarded by Caltrans, which makes line
item figures available online. Unfortunately, these contracts do not
separate out materials and labor. Subcontractors and specific tasks
list bid figures, but materials cost is not lined out, again, because
materials and application are sold as a package, rather than
separately. Line items occasionally are shown such as aggregate base,
however, they appear to include delivery and installation.
Examples:
http://www.dot.ca.gov/hq/esc/oe/awards/bidsum/0202/020206/020206R1.doc
http://www.dot.ca.gov/hq/esc/oe/awards/bidsum/0202/020206/020206RO.doc
http://www.dot.ca.gov/hq/esc/oe/awards/bidsum/0308/030819/030819R0.doc
Caltrans Bids Awarded 2002 - Present
http://www.dot.ca.gov/hq/esc/oe/awards/bidsum/
Additional Resources
----------------------------------------------------------------------
Michigan DOT Mix of Fixes Program
http://www.pavementpreservation.org/publications/TRN_article.pdf
Google Directory - Pavement and Pavement Product Manufacturers
http://directory.google.com/Top/Business/Construction_and_Maintenance/Materials_and_Supplies/Site_Construction/Pavement/Flexible/
Caltrans Construction Item Costs
http://www.dot.ca.gov/hq/esc/oe/contract_progress/chcci.html
I normally do not recommend pricey market research, however, due to
the scarcity of publicly available information, you may wish to
consider single page purchase ($30 per page) of critical data though
Hoover's:
Hoover's Online - Freedonia's Asphalt Products & Markets to 2003
http://www.hoovers.com/global/report/detail.xhtml?RID=127
Search Strategy
----------------------------------------------------------------------
Google, All the Web, Altavista, MSN - search terms - various
combinations of "pavement preservation", "pavement maintenance",
"annual sales", billions, "trade associations", manufacturing,
inventories, "pavement preservation products", "pavement maintenance
products"
Should you have any questions about the information or links provided,
please, feel free to ask.
---larre |