SIC 1442 Construction Sand and Gravel

SIC 1442

This category covers establishments primarily engaged in operating sand and gravel pits and dredges and in washing, screening, or otherwise preparing sand and gravel for construction uses.

NAICS CODE(S)

212321

Construction Sand and Gravel Mining

INDUSTRY SNAPSHOT

Construction sand and gravel is a fundamental raw material used primarily by the construction industry. It is among the most accessible of natural resources. Sand and gravel production benefited from growth in the construction industry in the 1990s, but growth diminished into the 2000s as the economy slowed. As a result, construction sand and gravel production in 2002 was approximately 1.13 billion tons, roughly the same as 2001 production. In 2002, about 4,000 companies in 50 states produced 1.3 billion metric tons of construction sand and gravel worth an estimated $5.8 billion. Nine states accounted for about 51 percent of U.S. output of construction sand and gravel. In order of volume, the leading states were California, Texas, Michigan, Arizona, Ohio, Minnesota, Washington, Colorado, and Wisconsin. About 51 percent of the total output was used for unspecified purposes. Of the remainder, 45 percent was used as aggregate in concrete; 22 percent for road stabilization and road base and coverings; 13 percent as aggregate in asphaltic and other bituminous mixtures; 13 percent as construction fill; 2 percent for concrete products, including bricks, blocks, and pipes; 1 percent for plaster and gunite sands; and 4 percent for roofing granules, snow and ice control, railroad ballast, filtration, and related uses.

According to the U.S. Geological Survey, the sand and gravel industry remained the same in both 2002 and 2003. Then, the industry increased its production and value to 1.9 billion metric tons and $6.3 billion in 2004, respectively. In order of volume, the leading states representing 54 percent of total production were California, Texas, Michigan, Arizona, Minnesota, Ohio, Colorado, Wisconsin, Washington, and Nevada. Approximately 54 percent of U.S. output of construction sand and gravel was utilized for undefined uses, whereas 44 percent was used as aggregate in concrete; 22 percent for road leveling out, road support and coverings; 15 percent accounted for fill; 13 percent for asphalt and other bituminous combinations; 2 percent for other concrete products, such as bricks and blocks; 2 percent for plaster and gunite sands; and 2 percent for roofing granules, snow and ice control, railroad ballast, filtration, and other related uses.

ORGANIZATION AND STRUCTURE

Sand is composed of particles of feldspar, limestone, slag, gypsum, coral, or quartz formed by such natural processes as erosion and weathering. Gravel consists of pebbles, stones, and rock fragments broken from larger deposits of such minerals as shale, quartz, granite, or sandstone by water or ice erosion. Gravel occurs geologically in riverbeds and seas but is more commonly found in dried-up streambeds formed by glaciers during the Ice Age. Sand is graded for commercial use by passing the grains through standardized sieves, which yield such classifications as very fine, fine, medium, coarse, and very coarse. The five standard gravel sizes are also classified according to the sieves through which they pass. Acceptable sizes for commercial sand and gravel vary with the engineering organization, highway department, or government agency setting the standard and are occasionally revised.

Sand and gravel are primarily used by private construction firms and government agencies in the construction and paving industries. Combined, they take the form of "aggregate" in concrete, portland cement, asphalt, mortar, and plaster, or can be used alone as "fill" in the construction of building foundations, runways, highways, dams, and a wide range of other applications. The commercial use of sand and gravel is so extensive that the growth or decline of production by industry firms is considered a reliable indicator of the country's economic activity.

Roughly 80 to 85 percent of the weight of concrete is typically contained in its sand and gravel aggregate content. In other words, one ton of concrete usually contains about 1,700 pounds of sand and gravel. An estimated 54,000 pounds of sand and gravel are used in the construction of a typical new American home. Traditionally, roughly twice as much gravel is used as sand in the United States. The term fine aggregate is often used to describe commercial sand and coarse aggregate to describe gravel. (In addition to sand and gravel, aggregate might also contain crushed stone.)

In the 1990s firms in the sand and gravel mining industry shared a number of characteristics with other U.S. mining industries, including equivalent production methods for blasting, drilling, loading, transporting, crushing, screening, and "beneficiation" (removal of impurities) of the mineral. Firms in sand and gravel and other mining industries also placed great emphasis on geological, management, and fundamental technical expertise and shared the same environmental, safety, and land rehabilitation concerns.

The sand and gravel mining industry is distinguished from other mining industries, however, by the number and size of its mining operations. Mining firms outside the industry generally operate fewer mines, which are on average much larger than sand and gravel operations. Whereas the market for sand and gravel and other aggregates is highly localized (generally within 40 miles of the quarry), the market for metals and their derivative minerals is much wider (approximately 300 miles for some industrial minerals) and in many cases international in scope. Finally, the amount of capital investment, time, and financial risk required to develop a metal mine is substantially larger than is common in the sand and gravel industry.

In the 1990s the aggregates industry as a whole was a mature industry tied closely to general economic cycles. The range of firms in the sand and gravel industry extended from small, temporary roadside pits working deposits of 20,000 cubic yards with portable equipment to major facilities extracting thousands of tons per day and maintaining stockpiles of processed sand and gravel in excess of 100,000 cubic yards. In the late 1990s the trend in the industry was a continued shift from the small, "family-run" mining operations toward consolidation of industry activities among a few large companies. One factor fueling this trend was the requirement by government environmental agencies that firms entering the industry file environmental impact statements beforehand, which eliminated many prospective small firms with limited start-up capital. Although...

To continue reading

Request your trial

VLEX uses login cookies to provide you with a better browsing experience. If you click on 'Accept' or continue browsing this site we consider that you accept our cookie policy. ACCEPT