SANTA CLARA COUNTY'S CONSTRUCTION & AGGREGATE INDUSTRIES CONTRIBUTE $12.5 BILLION TO LOCAL ECONOMY
San Jose, CA: Santa Clara County's construction and aggregate industries contribute $12.5 billion annually to the area's economy, according to a study released today by the Construction Materials Association of California's (CMAC) South Bay Chapter.
An Economic Analysis of the Construction and Aggregate Industries in Santa Clara County also found that these industries generate nearly 95,000 jobs, $5.4 billion in labor income, and produce a 2.2 multiplier effect - one of the highest of any industry.
Aggregates are the sand, gravel, and crushed stone products necessary for ready-mix concrete, asphalt, and virtually all construction building materials.
The study by Applied Development Economics, a leading California economic analysis firm, and e concepts, a San Mateo sociocultural research practice, used the widely recognized IMPLAN economic impact model to compute the benefits from construction and aggregates on the county's economy.
While construction and aggregate activities provide significant economic benefits, the study also recognizes the intrinsic importance of these industries for building and maintaining infrastructure - enabling both the county's successful high tech economy and preserving its quality of life.
"What this study does is reinforce why local supplies of aggregates are important for Santa Clara County's future. Local aggregates will ensure plentiful and affordable construction materials to build the county's roads, homes, and schools," said Charley Rea, CMAC's Interim Executive Director.
Recent projections show the San Jose region leading the Bay Area in population and job growth, and according to the report, there is a direct correlation between increased population and need for infrastructure. Providing essential infrastructure requires access to millions of tons of aggregates.
According to Will Kempton, Director of Caltrans, Santa Clara County and the rest of California need to be ready if voters consent in November to the Governor's $19.9 billion statewide public works bond. "If the bond passes, there will be a rush of business and we need to make sure sufficient supplies of aggregates and other materials are available to engage in a high level of activity over the next several years." He noted that Caltrans has been meeting with industry leaders to prepare them for the surge of business so that work can begin as soon as voters consent, if they do.
Local aggregate supplies reduce costs to taxpayers, home buyers, consumers, and to the environment. The report concludes that ensuring local aggregate availability is crucial for maintaining Santa Clara County's long-term sustainability, economic competitiveness, and community livability.
A copy of the study is available from the Construction Materials Association of California, 916/554-1000, or www.cmac-ca.org
CONTACTS:
Construction Materials Association of California Sacramento (916) 554-1000
- Charley Rea, Interim Executive Director
Raisch Products San Jose (408) 227-9222
- Chuck Berry, Operations Manager
- Chair, CMAC South Bay Chapter
Applied Development Economics Walnut Creek (925) 934-8712
- Peter Cheng
e concepts San Mateo (650) 579-5839
- Sharon Prager
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February 17, 2005
CONSTRUCTION & AGGREGATES STATE’S 4TH LARGEST INDUSTRY ACCORDING TO NEW CMAC STUDY
SACRAMENTO, CA, Feb. 17th/PR Newswire/ Construction, and the sand and gravel necessary for concrete, asphalt, and other building materials, contribute $230 billion to California’s economy ranking it as the state’s 4th largest industry, according to a new study released today by the Construction Materials Association of California (CMAC).
The report, “The Importance of Aggregates and Construction to California’s Economy” found that aggregates and construction supports over 1.8 million jobs, earned workers over $86 billion, and paid some of the state’s highest wages and compensation. Job growth in 2003 for aggregates and construction also substantially outpaced other industries in California.
“The aggregates and construction industry plays a vital role in maintaining and expanding the infrastructure that we need to maintain quality of life in our state,” said Senator Tom Torlakson, D-Antioch, Chairman of the Senate Transportation and Housing Committee. “The continued success of this industry will lead to more jobs, a better supply of affordable homes, and improved freeways and roads.”
The study, produced by Applied Development Economics, a leading California economic analysis firm, in association with e concepts of San Mateo, examined the overall impacts of the aggregates and construction industry statewide, as well as its regional benefits in 25 California metropolitan areas. While aggregates and construction has seen growth throughout the state, its economic significance is especially important in rapidly growing regions such as Sacramento, Santa Rosa, Stockton, San Jose, and Riverside-San Bernardino.
Linda Falasco, Executive Director of CMAC, said the results of the study not only show that the construction and aggregates industry is a major pillar of the state’s economy, but that it is “absolutely essential for solving California’s housing affordability crisis, improving traffic congestion, and building the water projects, college campuses, and other infrastructure so critically needed by our residents.”
The study updates a CMAC report issued in 2001, and primarily examines California’s aggregates industry. Sand and gravel and crushed stone are known as “aggregates” and are the basic raw materials used in construction, road building, and ready mixed concrete. As California’s population continues to grow, so does the need for building and maintaining infrastructure. According to forecasts by the Department of Conservation, the state will experience a shortfall of 3 billion tons of aggregates during the next 4 decades. The report highlights the need for land-use planning that recognizes the importance of local aggregate supplies to communities and regions.
The California Mining Association, the Northern California Asphalt Producers Association, and the Concrete Promotion Council of Northern California also endorse the study.
A copy of the study is available from the Construction Materials Association of California, 1029 “J” St., Sacramento, CA 95814, 916/554-1000, or www.cmac-ca.org.
CONTACTS:
Construction Materials Association of California Sacramento 916/554-1000
- Linda Falasco, Executive Director lindacmac@sbcglobal.net
- Charley Rea, Assistant Executive Director clreacmac@sbcglobal.net
Applied Development Economics
- Doug Svensson, President Berkeley 510/548-5912
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February 12, 2004
CONSTRUCTION MATERIALS ASSOCIATION OF CALIFORNIA CAPTURES NATIONAL AWARD
SACRAMENTO, CA: The Construction Materials Association of California (CMAC) has been named “State Association of the Year for 2003” by the National Stone, Sand, and Gravel Association (NSSGA). The annual award recognizes a state association for exemplary service to the aggregates industry.
CMAC’s Executive Director, Linda Falasco, was presented the award at NSSGA’s annual convention in Phoenix on January 24th by its President and CEO, Joy Wilson.
CMAC was honored for activities and accomplishments that significantly benefit the aggregates industry both regionally and nationally. According to Ms. Wilson, CMAC demonstrated outstanding efforts at improving the industry’s public image; sponsoring studies analyzing the economic impacts of the construction and aggregate industries in California; and coordinating a public affairs campaign to raise awareness about the industry.
In addition, CMAC was recognized for its leadership role in environmental management and health and safety training courses.
The California State Legislature is also honoring CMAC for its contributions to public policy and education, and for achieving the NSSGA award. A resolution will be presented by Kevin McCarthy (R-Bakersfield) at CMAC’s annual conference on March 4th at the Hyatt Hotel in Sacramento.
CMAC Executive Director Linda Falasco said “CMAC is truly appreciative of the award from NSSGA and recognition by the State Legislature. We are fortunate to have an active and involved membership, committed to excellence for the industry.”
Sand, gravel, and crushed stone are known as “aggregates”, the basic raw materials used in construction, road building, and ready mixed concrete. All of California’s public and private infrastructure – its roads, highways, homes, buildings, schools, and industrial and commercial facilities - depend upon readily available aggregates for construction.
CMAC represents over 60 aggregate and ready mixed concrete companies from the Oregon border to Bakersfield, totaling over 200 operations. CMAC members contribute to California’s $108 billion construction and aggregates industry which is 10% of the state’s $1.2 trillion gross product.
CONTACTS:
Construction Materials Association of California
-Linda Falasco, Executive Director
-Charley Rea, Assistant Executive Director
Sacramento
Phone: 916/554-1000
Fax: 916/554-1042
E-mail: cmacadmin@pacbell.net
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April 30, 2002
CONSTRUCTION MATERIALS ASSOCIATION OF CALIFORNIA ISSUES FIRST SURVEY ON RECLAIMED LAND USE
ENVIRONMENTAL RESTORATION A PRIORITY FOR CALIFORNIA’S SAND AND GRAVEL OPERATORS
Sacramento, California – California’s sand and gravel industry restores land to primarily conservation uses, according to a new study released today by the Construction Materials Association of California (CMAC).
The Reclamation Survey, a pilot study of the reclamation activities of the members of the Construction Materials Association of California, finds that after land has produced sand and gravel products for constructing roads and buildings, it is reclaimed to 44 different uses. Conservation is the primary land usage, including open space, wetlands, wildlife habitat, and native revegetation. California’s sand and gravel producers are a major resource for creating and restoring thousands of acres of wetlands and wildlife habitat.
The Survey found that Recreation was the second most prevalent land use, followed by Agriculture and Grazing. In addition, the study also supports the findings of the California Office of Mine Reclamation that over 50 square miles of land from aggregate production statewide were reclaimed during the 1990s.
“We are delighted to have a qualitative report that characterizes our modern day industry practices and demonstrates our commitment to land stewardship,” said Linda Falasco, Executive Director of CMAC.
The study was produced by e concepts, a natural resources consulting firm based in Burlingame, California.
Copies of the Survey, and a detailed brochure on reclamation activities, are available from the Construction Materials Association of California, 1029 “J” St., Sacramento, CA 95814, or call 916/554-1000.
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September 11, 2001
CONSTRUCTION MATERIALS ASSOCIATION OF CALIFORNIA FINDS THAT LOOMING SAND AND GRAVEL SHORTAGES THREATEN CALIFORNIA’S FUTURE
AGGREGATES INDUSTRY MAJOR CONTRIBUTOR TO CALIFORNIA’S ECONOMY, BUT SHORTAGES POSE RISK TO INFRASTRUCTURE
SACRAMENTO, CA - Policymakers and planners have failed to consider whether local supplies of construction aggregates will be available to meet the state’s urgent need for upgrading, maintaining, and building new infrastructure. This planning lapse is one of the conclusions of a new study released today by the Construction Materials Association of California.
Finding that California’s construction industry provides over $108 billion, or 10% of the state’s $1.2 trillion gross product, The Aggregates Industry: Its Importance to California’s Economy and Infrastructure, presents economic data documenting the contribution that the aggregates industry, in its pivotal role as supplier of raw materials for construction, makes to the California economy. Applied Development Economics, a leading Sacramento and Berkeley based consulting firm specializing in industry analysis, wrote the study in association with e concepts of Burlingame.
Known as “aggregates”, sand and gravel and crushed stone are the basic raw materials used in construction, road building, and ready mixed concrete. All of California’s public and private infrastructure – its roads, highways, homes, buildings, schools, and industrial and commercial facilities – depend upon readily available aggregates for construction.
Maintaining access to locally available aggregates is especially critical, as investment in California’s crumbling infrastructure has been identified as one of the state’s most pressing concerns. Overcoming deficiencies in the maintenance and development of transportation systems, school facilities, and affordable housing will depend upon local, low-cost, and large sources of aggregates. According to Jim King, President of Applied Development Economics, “The New Economy firms that are the engines of economic growth in California cannot compete in the global marketplace if the state’s basic infrastructure is not world class.”
Throughout California, many local sources of permitted aggregate supplies are rapidly running out. Without local, low cost, and accessible quality aggregates, California communities will be unable to sustain an attractive quality of life or economy. According to the report, local and county jurisdictions will need to give greater consideration to aggregates in their land use planning and policies, and provide for the development of these resources at the local level.
Other Key Findings:
- The aggregates industry contributes $5.1 billion to the state’s gross product, including nearly $1 billion in federal and state taxes.
- Aggregate companies employ nearly 35,000 workers and provide over $1.5 billion in wages.
- Aggregate companies boost the economies of all 58 California counties.
- While construction increased by over $9.5 billion between 1995-99, California’s failure to invest in essential infrastructure is causing critical deficiencies in roads, schools, bridges, power plants, airports, and water and sewage systems.
- A deteriorating infrastructure threatens California’s quality of life, public safety, and competitiveness in the global economy.
A copy of the study is available from the Construction Materials Association of California, 1029 “J” St., Sacramento, CA 95814, or call 916/554-1000.
CONTACTS:
Construction Materials Association of California
Sacramento
916/554-1000
Linda Falasco, Executive Director
Applied Development Economics
Berkeley
510/548-5912
Doug Svensson, Managing Principal Economist
Southern California Rock Products Association
Pasadena
626/441-3107
Steve Bledsoe, President
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