Asphalt manufacturing in the u.s.

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Asphalt Manufacturing in the U.S.

February 1, 2009
Worldwide annual consumption of asphalt is at more than 100 million tons. In the United
States, generally 90% of liquid asphalt cement consumed is used for road paving and
approximately 10% is used for roofing products, with other specialty applications
accounting for only a very small fraction of consumption.

Though asphalt occurs naturally, the majority of today’s asphalt is produced as a
residual product of the crude oil refining process. Most refiners focus on refining more
expensive, lighter, “sweeter” crudes to produce the higher-value products such gasoline
and diesel fuel. In all, about two to three percent of all refined crude oil in the United
States becomes asphalt.

Most crude oil asphalt comes from less expensive, heavier, “sour” crude oils rather than
the more expensive lighter, sweet crude oils. For crude oil refiners asphalt accounts for
a much larger portion of the product refined.

Demand for asphalt is driven to a small degree by the private sector, but most demand
comes from federal, state, and local governments. Funding for highway and road
infrastructure construction and maintenance plays the largest role, but other public
sector projects such as airport runway and taxiway construction can also affect demand.
Since funding for highway and road construction and maintenance projects are often set
for several years, demand tends to remain rather constant growing more or less at the
rate of inflation. However, the recent prospect of massive infrastructure spending to
stimulate growth in the U.S. economy under the new Obama administration suggest
demand will likely increase significantly in the coming years.

Specialists in Business Information (SBI) estimates the U.S. market for liquid asphalt
cement totaled $11.7 billion in 2008, up 34% from $8.7 billion in 2007. This report
explains why, and forecasts what lies ahead for the asphalt industry from 2009 - 2013.

Scope of the Report

This SBI report contains data and analysis describing the U.S. market for asphalt. The
report focuses on the primary commodity market, refined liquid asphalt cement, and the
secondary product market, asphalt paving mixtures. In addition, limited data and
analysis are provided for the asphalt shingle and coating materials manufacturing

market (asphalt roofing products). Chapter 3 covers the liquid asphalt cement market
while Chapter 4 covers the asphalt paving mixtures and asphalt roofing products
market. SBI refers to the asphalt paving and roofing markets as the asphalt products
market. Chapter 5 covers the competitive landscape of asphalt refiners and blenders
with data and analysis on U.S. asphalt refining capacity and utilization including profiles
of major asphalt refiners, blenders, and paving mixture manufacturers. Chapter 6 looks
at economic and market trends affecting the asphalt industry. Included are an analysis
and forecast through 2009 of gross domestic product (GDP), an in-depth cost and price
analysis of various components of the asphalt market as well as the competing concrete
market, and a look at the shift to warm mix, eco-challenges and weather/seasonality
trends.. Finally, Chapter 7 provides a snapshot of the two end-user markets, asphalt
paving and asphalt roofing.

Additional Information

Market Insights: A Selection From The Report

Asphalt Demand
Demand for asphalt is driven to a small degree by the private sector, but most demand
comes from federal, state, and local governments. Funding for highway and road
infrastructure construction and maintenance plays the largest role, but other public
sector projects such as airport runway and taxiway construction can also affect demand.
Since funding for highway and road construction and maintenance projects are often set
for several years, demand tends to remain rather constant growing more or less at the
rate of inflation. However, the recent prospect of massive infrastructure spending to
stimulate growth in the U.S. economy under the new Obama administration suggest
demand will likely increase significantly in the coming years.

U.S. Market Nears $12 Billion
SBI estimates the U.S. market for liquid asphalt cement totaled $11.7 billion in 2008, up
34% from $8.7 billion in 2007. According to SBI estimates, this followed a relatively
modest decline in 2007 of six percent from the 2006 level of $9.3 billion and 44% gain
over the 2005 level of $6.4 billion. The remarkable rise in value of the market over these
few years came about as refiners began to cut back production of asphalt in favor of
higher-valued, highermargin refined products resulting in an asphalt shortage that drove
prices sharply higher. For the ten-year period between 1999 and 2008, the market grew
at a compound annual growth rate (CAGR) of 16%, however, for the five-year period
2004-2008, growth was at a CAGR of 23%.

In the News

Asphalt Industry Big Winner in Obama Stimulus Plan

New York, January 28, 2009 - Thirty billion dollars is the current figure specified for
highway construction in the American Recovery and Reinvestment Act moving swiftly
toward signature by President Barack Obama. That’s a lot of asphalt!

The President’s commitment to a colossal investment in the nation’s road infrastructure
is further reinforced by the proposed National Infrastructure Reinvestment Bank that will
invest $60 billion over ten years and generate nearly two million new jobs. In the all-new
report, Asphalt Manufacturing in the U.S., industrial market research publisher SBI
estimates that as much as 28% of the proposed $60 billion will go towards increasing
paving projects across American roads.

SBI subsequently expects the domestic asphalt industry to surge over the next four
years and build on the nearly $12 billion the U.S. market for liquid asphalt cement
totaled in 2008, which was a 34% increase from almost $9 billion in 2007. Through
2013, SBI forecasts the U.S. liquid asphalt cement market will top $16 billion
accompanied by a compound annual growth rate (CAGR) of 7%. Overall, the U.S.
asphalt products market is expected to grow at a CAGR of 10% through 2013 to over
$38 billion compared to almost $24 billion in 2008.

“The major infrastructure spending expected by the Obama administration and a
democratic Congress will mean greater demand for asphalt paving mixtures following
the passage of a bill, which we at SBI expect may happen as early as spring 2009. The
effects will be most noticeable in 2010 and beyond as state and local governments get
their hands on much needed funds for projects already on hold,” says SBI Associate
Publisher Shelley Carr.

Historically, the demand for asphalt is primarily driven by federal, state, and local
governments seeking to fund highways and road infrastructure construction and
maintenance.

Asphalt Manufacturing in the U.S. provides comprehensive market information for an
asphalt industry certain to benefit from President Barack Obama's determination to
create jobs in the U.S. quickly. Included are forecasts of what lies ahead for the asphalt
industry from 2009-2013. The report focuses on the primary commodity market (refined
liquid asphalt cement) and the secondary product market (asphalt paving mixtures).
Limited data and analysis are also provided for the asphalt shingle and coating
materials manufacturing market (asphalt roofing products).

About SBI
SBI (Specialists in Business Information) publishes research reports in the industrial,
energy, building/construction, automotive/transportation and packaging markets. SBI
also offers a full range of custom research services.

TABLE OF CONTENTS

Chapter 1: Executive Summary
Scope of the Report
Market Data Provided
Methodology
A Note on Measures Used
Asphalt Production
Asphalt Consumption
Asphalt Applications
Asphalt Supply
Asphalt Demand
Asphalt Economics
Asphalt Distribution and Seasonality
The U.S. Liquid Asphalt Cement Market
Table 1-1: U.S. Liquid Asphalt Cement Value of Apparent Consumption and
Year-over-Year Percentage Change, 1999-2008 (in millions of dollars)
2008 Production Drops 14%
Table 1-2: U.S. Liquid Asphalt Cement Apparent Consumption by Volume,
Average Price per Barrel, and Year-over-Year Percentage Changes, 1999-2008
(in millions of barrels)
Liquid Asphalt Cement Market Forecast
Crude Costs to Remain Below 2008 Levels
Obama Administration Likely to Spend on Infrastructure
Coker Unit Investments Slow
2009 Production Increases Modest, Price Drops Significant
Table 1-3: U.S. Liquid Asphalt Cement Value of Apparent Consumption Forecast
and Year-over-Year Percentage Change, 2008-2013 (in millions of dollars)
Consumption Growth at 8%, Prices Fluctuate
Average Price per Barrel Forecasts, and Year-over-Year Percentage Changes,
2008-2013 (in millions of barrels)
The U.S. Asphalt Products Market
Asphalt Products Market Reaches $24 Billion
Table 1-5: U.S. Asphalt Products’ Value of Apparent Consumption and Yearover-
Year Percentage Change, 1999-2008 (in millions of dollars)
Total Quantities on the Decline
Prices on the Move Upward
Table 1-6: U.S. Asphalt Products’ Apparent Consumption by Quantity, Average
Price per Metric Ton, and Year-over-Year Percentage Changes, 1999-2008 (in
thousand metric tons)
Asphalt Products Market to Top $38 billion by 2013
Paving Mixtures CAGR 14% by 2013

Table 1-7: U.S. Asphalt Products’ Market Forecast by Segment and Yearover-
Year Percentage Changes: Asphalt Paving Mixtures and Shingle and Coating
Materials, 2008-2013 (in millions of dollars)
Competitive Overview: Refiner Focus
Fragmented and Regional Business Landscape
Marathon Is Largest Refiner with 12% Share of Production Capacity
Low Refiner Capacity Utilization
Producers/Pavers Highly Fragmented
Economic & Marketplace Trends
Real GDP Growth Projected at Negative 0.8% for 2009
Figure 1-1: Percentage Changes in U.S. Current-Dollar GDP, Real GDP and the
GDP Price Index, 2002-2008 (percentage)
Asphalt Product Producer Prices Skyrocket
Price Increases by Product
Paving Products: Mixtures See 17% Gain in 2008
Roofing Products See Relatively Modest Price Increases in 2008
Asphalt Input Prices: Crude Up 75%+
Coker Projects May Further Reduce Asphalt Supply
Pavement Input Prices: Liquid Asphalt and Aggregate Up Overall 7%
Other Asphalt Pavement Input Costs
Higher Prices on Input Materials for Concrete
Prices and Supply Jeopardizing Road Maintenance Budgets
Warming Weather Trends Benefit Marketplace
Re-Defining as a Green Industry
Labor Shortages and Immigration to Hamper Road Building
Warm Mix Asphalt Positioned to Usurp Hot Mix
End User Markets
Paving Industry Consumes 93% Asphalt Plus
Asphalt Roofing No Growth in Sight
Total Construction Spending Declines
Table 1-8: Total U.S. Construction Spending and Year-over-Year Percent
Change, 2002-2008 (in millions of dollars)
Highway & Street Construction Down from Mid-Decade
Table 1-9: Total Highway & Street Construction Spending and Year-over- Year
Percent Change, 2002-2008 (in billions of dollars)
State & Local Pavement Spending at $50 Billion for 2008
Table 1-10: Total State & Local Pavement Spending and Year-over-Year Percent
Change, 2002-2008 (in billions of dollars)
Federal Spending and SAFETEA-LU
Table 1-11: Safe, Accountable, Flexible, Efficient Transportation Equity Act: A
Legacy for Users (SAFETEA-LU) Total Highway Spending (Excluding
Transportation Research) and Year-over-Year Percent Change, 2005-2009 (in
billions of dollars)
Non-Residential Pavement Contractor Revenue Affected by Price Fluctuations
Table 1-12: Total Non-Residential Pavement Contractor Revenues and
Yearover- Year Percent Change, 2002-2008 (in billions of dollars)

“Residential” Pavement Contractor Revenue Arcs Downward
Table 1-13: Total “Residential” Pavement Contractor Revenues and Yearover-
Year Percent Change, 2002-2008 (in billions of dollars)
Roofing Contractor Revenues Decline 16% in 2008
Table 1-14: Total Roofing Contractor Revenues and Year-over-Year Percent

Chapter 2: Introduction
Scope of the Report
Market Data Provided
Competitive Landscape
Economic and Market Trends
End User Markets
Methodology
Terms
A Note on Measures Used
Asphalt Primer
Production
Consumption
Applications
Supply
Demand
Asphalt Economics
Distribution and Seasonality

Chapter 3: The U.S. Liquid Asphalt Cement Market
Figure 3-1: U.S. Liquid Asphalt Cement Value of Apparent Consumption, 1999-
2008 (in billions of dollars)
Table 3-1: U.S. Liquid Asphalt Cement Value of Apparent Consumption and
Year-over-Year Percentage Change, 1999-2008 (in millions of dollars)
Real Consumption Lower, Prices Higher
Figure 3-2: U.S. Liquid Asphalt Cement Apparent Consumption by Volume and
Average Price per Barrel, 1999-2008 (in millions of barrels)
2008 Production Drops 14%
Average Price per Barrel, and Year-over-Year Percentage Changes, 1999-2008
Components of Trade
Table 3-3: U.S. Liquid Asphalt Cement Value of Components of Trade, 1999-
2008 (in millions of dollars)
Table 3-4: U.S. Liquid Asphalt and Road Oil Supply and Disposition, 1999-2008
Value of Net Shipments
Figure 3-3: U.S. Liquid Asphalt Cement Value of Net shipments (Shipments Less
Exports) and Percent of U.S. Apparent Consumption, 1999-2008 (in billions of
dollars)

Table 3-5: U.S. Liquid Asphalt Cement Value of Net Shipments and Yearover-
Year Percentage Change, 1999-2008 (in millions of dollars)
Net Shipment Volume, Prices
Figure 3-4: U.S. Liquid Asphalt Cement Net Shipments (Shipments Less Exports)
by Volume and Average Net Shipment Prices per Barrel, 1999-2008 (in billions of
dollars)
Table 3-6: U.S. Liquid Asphalt Cement Net Shipments by Volume, Average Price
per Barrel, and Year-over-Year Percentage Changes, 1999-2008 (in millions of
barrels)
Value of Imports Volatile
Figure 3-5: U.S. Liquid Asphalt Cement Imports and Percent of U.S. Value of
Apparent Consumption, 1999-2008 (in millions of dollars)
Table 3-7: U.S. Liquid Asphalt Cement Value of Imports and Year-over-Year
Percentage Change, 1999-2008 (in millions of dollars)
Import Volume Growth at 4%, Prices at 25% in Ten-Year Period
Figure 3-6: U.S. Liquid Asphalt Cement Imports by Volume and Average Price
per Barrel, 1999-2008 (in millions of barrels)
Table 3-8: U.S. Liquid Asphalt Cement Imports by Volume, Average Price per
Barrel, and Year-over-Year Percentage Changes, 1999-2008 (in millions of
barrels)
Export Share Improves
Figure 3-7: U.S. Liquid Asphalt Cement Value of Exports and Percent of U.S.
Value of Shipments, 1999-2008 (in millions of dollars)
Table 3-9: U.S. Liquid Asphalt Cement Value of Exports and Year-over-Year
Percentage Change, 1999-2008 (in millions of dollars)
Export Volume Growth at 20%, Prices at 11% in Ten-Year Period
Figure 3-8: U.S. Liquid Asphalt Cement Imports by Volume and Average Price
per Barrel, 1999-2008 (in millions of barrels)
Table 3-10: U.S. Liquid Asphalt Cement Exports by Volume, Average Price per
Barrel, and Year-over-Year Percentage Changes, 1999-2008 (in millions of
barrels)
Market Forecast
Asphalt Cement Market Impacted by Supply, Demand and Commodity Pricing
Crude Costs to Remain Below 2008 Levels
Obama Administration Likely to Spend on Infrastructure
Coker Unit Projects Further Shift Refiner Interests Away from Asphalt
Figure 3-9: U.S. Liquid Asphalt Cement Value of Apparent Consumption
Forecast, 1999-2008 (in billions of dollars)
2009 Production Increases Modest, Price Drops Significant
Table 3-11: U.S. Liquid Asphalt Cement Value of Apparent Consumption
Forecast and Year-over-Year Percentage Change, 2008-2013 (in millions of
dollars)
Consumption Growth at 8%, Price Fluctuates
Figure 3-10: U.S. Liquid Asphalt Cement Apparent Consumption by Volume and
Average Price per Barrel Forecasts, 2008-2013 (in millions of barrels).

Average Price per Barrel Forecasts, and Year-over-Year Percentage Changes,
2008-2013 (in millions of barrels)

Chapter 4: The U.S. Asphalt Products Market
Asphalt Products Market Reaches $24 Billion
Figure 4-1: U.S. Asphalt Products’ Value of Apparent Consumption, 1999-2008
(in billions of dollars)
Table 4-1: U.S. Asphalt Products’ Value of Apparent Consumption and Year-
over-Year Percentage Change, 1999-2008 (in millions of dollars)
Figure 4-2: Share of U.S. Asphalt Products’ Value of Apparent Consumption by
Segment: Asphalt Paving Mixtures and Asphalt Shingle and Coatings, 2008
(percentage)
Total Quantities on the Decline
Figure 4-3: U.S. Asphalt Products’ Apparent Consumption by Quantity and
Average Price per Metric Ton, 1999-2008 (in million metric tons)
Prices on the Rise
Table 4-2: U.S. Asphalt Products’ Apparent Consumption by Quantity, Average
Price per Metric Ton, and Year-over-Year Percentage Changes, 1999-2008 (in
Figure 4-4: Share of U.S. Asphalt Products’ Quantity of Apparent Consumption
by Segment: Asphalt Paving Mixtures and Asphalt Shingle and Coatings, 2008
(percentage)
Asphalt Paving Mixtures Market
Paving Mixtures Reaches $17 Billion
Figure 4-5: U.S. Asphalt Paving Mixtures Apparent Consumption and Percent of
Total U.S. Asphalt Products’ Market, 1999-2008 (in billions of dollars)
Table 4-3: U.S. Asphalt Paving Mixtures Apparent Consumption Value and Year-
over-Year Percentage Change, 1999-2008 (in millions of dollars)
Asphalt Paving Mixtures Quantity and Price
Figure 4-6: U.S. Asphalt Paving Mixtures Apparent Consumption by Quantity and
Average Price per Metric Ton, 1999-2008 (in millions of metric tons)
Table 4-4: U.S. Asphalt Paving Mixtures Apparent Consumption by Quantity,
Average Price per Metric Ton, and Year-over-Year Percentage Changes, 1999-
2008 (in thousand metric tons)
Components of Trade
Table 4-5: U.S. Asphalt Paving Mixtures Components of Trade Value, 1999-
2008 (in millions of dollars)
Net Shipment Value, Quantity and Price
Figure 4-7: U.S. Asphalt Paving Mixtures Net Shipments Value (Shipments Less
Exports) and Percent of U.S. Apparent Consumption, 1999-2008 (in billions of
dollars)
Table 4-6: U.S. Asphalt Paving Mixtures Net Shipments Value (Shipments Less
Exports) and Year-over-Year Percentage Changes, 1999-2008 (in millions of
dollars)

Figure 4-8: U.S. Asphalt Paving Mixtures Net Shipments (Shipments Less
Exports) by Quantity and Average Prices per Metric Ton, 1999-2008 (in million
metric tons)
Table 4-7: U.S. Asphalt Paving Mixtures Net Shipments (Shipments Less
Exports) by Quantity, Average Prices per Metric Ton, and Year-over-Year
Percentage Changes, 1999-2008 (in million metric tons)
Import Value, Quantity, and Price
Figure 4-9: U.S. Asphalt Paving Mixtures Import Value and Percent of U.S.
Apparent Consumption, 1999-2008 (in millions of dollars)
Table 4-8: U.S. Asphalt Paving Mixtures Import Value and Year-over-Year
Percentage Changes, 1999-2008 (in millions of dollars)
Figure 4-10: U.S. Asphalt Paving Mixtures’ Imports by Quantity and Average
Import Prices per Metric Ton, 1999-2008 (in thousand metric tons)
Table 4-9: U.S. Asphalt Paving Mixtures’ Imports by Quantity and Average Import
Prices per Metric Ton, and Year-over-Year Percentage Changes, 1999-2008 (in
Export Value, Quantities and Prices
Figure 4-11: U.S. Asphalt Paving Mixtures’ Export Value and Percent of Total
U.S. Shipment Value, 1999-2008 (in millions of dollars)
Table 4-10: U.S. Asphalt Paving Mixtures’ Export Value and Year-over-Year
Percentage Changes, 1999-2008 (in millions of dollars)
Figure 4-12: U.S. Asphalt Paving Mixtures Exports by Quantity and Average
Export Prices per Metric Ton, 1999-2008 (in thousand metric tons)
Table 4-11: U.S. Asphalt Paving Mixtures Exports by Quantity and Average
Export Prices per Metric Ton, 1999-2008 (in thousand metric tons)
Asphalt Shingle and Coating Materials Market
Shingle and Coating Materials Slides to $7 billion
Figure 4-13: U.S. Asphalt Shingle and Coating Materials Apparent Consumption
and Percent of Total U.S. Asphalt Products’ Market, 1999-2008 (in billions of
dollars)
Table 4-12: U.S. Asphalt Shingle and Coating Materials Apparent Consumption
and Year-over-Year Percentage Changes, 1999-2008 (in millions of dollars)
Asphalt Shingle & Coating Materials Quantity and Price
Figure 4-14: U.S. Asphalt Shingle and Coating Materials Apparent Consumption
by Quantity and Average Price per Metric Ton, 1999-2008 (in millions of metric
tons)
Table 4-13: U.S. Asphalt Shingle and Coating Materials Apparent Consumption
by Quantity and Average Price per Metric Ton, and Yearover- Year Percentage
Changes, 1999-2008 (in thousand metric tons)
Components of Trade
Table 4-14: U.S. Asphalt Shingle & Coating Materials Value of Components of
Trade, 1999-2008 (in millions of dollars)
Net Shipment Value, Quantity and Price
Figure 4-15: U.S. Asphalt Shingle & Coating Materials Net Shipment Value
(Shipments Less Exports) and Percent of U.S. Apparent Consumption, 1999-
2008 (in billions of dollars)

Table 4-15: U.S. Asphalt Shingle & Coating Materials Net Shipment Value
(Shipments Less Exports) and Year-over-Year Percentage Changes, 1999-2008
(in millions of dollars)
Figure 4-16: U.S. Asphalt Paving Mixtures Net Shipments (Shipments Less
Exports) by Quantity and Average Net Shipment Prices per Metric Ton, 1999-
2008 (in millions metric tons)
Table 4-16: U.S. Asphalt Paving Mixtures Net Shipments (Shipments Less
Exports) by Quantity, Average Net Shipment Prices per Metric Ton, and Year-
over-Year Percentage Changes, 1999-2008 (in millions metric tons) ..
Import Value, Quantity and Prices
Figure 4-17: U.S. Asphalt Shingle & Coating Materials Import Value and Percent
of U.S. Apparent Consumption, 1999-2008 (in millions of dollars) ..
Table 4-17: U.S. Asphalt Shingle & Coating Materials Imports Value and Year-
over-Year Percentage Changes, 1999-2008 (in millions of dollars)
Figure 4-18: U.S. Asphalt Shingle & Coating Materials Imports by Quantity and
Average Import Prices per Metric Ton, 1999-2008 (in thousand metric tons)
Table 4-18: U.S. Asphalt Shingle & Coating Materials Imports by Quantity,
Average Import Prices per Metric Ton, and Year-over-Year Percentage Changes,
1999-2008 (in thousand metric tons)
Export Value, Quantity and Prices
Figure 4-19: U.S. Asphalt Shingle & Coating Materials Value of Exports and
Percent of Total U.S. Shipment Value, 1999-2008 (in millions of dollars)
Table 4-19: U.S. Asphalt Shingle & Coating Materials Exports and Yearover-
Year percentage Changes, 1999-2008 (in millions of dollars)
Figure 4-20: U.S. Asphalt Shingle & Coating Materials Exports by Quantity and
Average Export Prices per Metric Ton, 1999-2008 (in thousand metric tons)
Table 4-20: U.S. Asphalt Shingle & Coating Materials Exports by Quantity,
Average Export Prices per Metric Ton, and Year-over-Year Percentage Changes,
1999-2008 (in thousand metric tons)
Market Forecast
Asphalt Products Market to Top $38 billion by 2013
Figure 4-21: U.S. Asphalt Products’ Market Forecast by Segment: Asphalt
Paving Mixtures and Shingle and Coating Materials, 2008-2013 (in billions of
dollars)
Paving Mixtures to Grow at 14% CAGR
Table 4-21: U.S. Asphalt Products’ Market Forecast by Segment and Yearover-
Year Percentage Changes: Asphalt Paving Mixtures and Shingle and Coating
Materials, 2008-2013 (in millions of dollars)
Figure 4-22: U.S. Asphalt Paving Mixtures Forecast by Quantity and Average
Price per Metric Ton, 2008-2013 (in millions of metric tons)
Government Spending to Bolster Market
Table 4-22: U.S. Asphalt Paving Mixtures Forecast by Quantity, Average Price
per Metric Ton, and Year-over-Year Percentage Changes, 2008-2013 (in millions
of metric tons)
Roofing Products Will Soften in 2009

Figure 4-23: U.S. Asphalt Shingle and Coating Materials Forecast by Quantity
and Average Price per Metric Ton, 2008-2013 (in millions of metric tons)
Slow Improvement by 2013
Table 4-23: U.S. Asphalt Shingle and Coating Materials Forecast by Quantity,
Average Price per Metric Ton, and Year-over-Year Percentage Changes, 2008-
2013 (in millions of metric tons)

Chapter 5: Competitive Overview
Introduction
Competitive Landscape Consists of Three Stages
Fragmented and Regional Business Landscape
Figure 5-1: Top 10 U.S. Asphalt Refiners by Production Capacity, 2008
(percentage)
Marathon Is Largest Refiner with 12% Share of Production Capacity
Table 5-1: U.S. Asphalt Production Capacity by Company, 2008 (barrels per day)
Low Refiner Capacity Utilization
Figure 5-2: Total Asphalt Refiner Net Production Yield and Excess Capacity,
1999-2008 (in thousand barrels per day)
Asphalt Considered Secondary and Low Value
Change in Perception on the Horizon?
Producers/Pavers Highly Fragmented
The U.S. Market Consists of Many Local Mini-Markets
Regional Supply Shortages
Asphalt Producer Profiles
Ergon, Inc
Overview
Performance
Products
Table 5-2: Selected Ergon Companies and Brands
Significant Events
Marathon Oil Corporation
Overview
Performance
Figure 5-3: Total Marathon Oil Corporation Revenue, 2004-2008 (in billions of
dollars)
Figure 5-4: Marathon Oil Corporation Total Asphalt Yield and Percent of Total
Refined Product Yield, 2004-2008 (thousand barrels per day)
Figure 5-5: Marathon Oil Corporation Total Asphalt Sales and Percent of Total
Refined Product Sales, 2004-2008 (thousand barrels per day)
Products
Table 5-3: Selected Marathon Asphalt Products
Significant Events
NuStar Energy L.P.
Overview
Performance
Figure 5-6: NuStar Energy LP Total Sales by Segment: Product Marketing versus
Service, 2005-2008 (in millions of dollars)

Figure 5-7: Share of NuStar Energy LP Refining Yield in Thousands of Barrels
per Day by Major Product: Asphalt versus Other (Naptha, Marine Fuel Oil, etc),
Q1-Q3 2008 (percent)
Products
Significant Events
SemMaterials (SemGroup L.P.)
Overview
Performance
Products
Table 5-4: Selected SemMaterials Products
Significant Events
Valero Energy Corporation
Overview
Performance
Figure 5-8: Total Valero Energy Corporation Revenue, 2004-2008 (in billions of
dollars)
Figure 5-9: Valero Energy Corporation Total Lube & Asphalt Sales and Percent
of Total Refined Product Sales, 2004-2008 (in billions of dollars) .
Figure 5-10: Valero Energy Corporation Total Asphalt Yield and Percent of Total
Refined Product Yield, 2004-2008 (thousand barrels per day)
Products
Table 5-5: Selected Valero Products
Significant Events
Paving Companies
Oldcastle Materials (Oldcastle Inc./CRH Plc)
Overview
Performance
Figure 5-11: Total Oldcastle Materials Revenue, 2004-2008 (in billions of dollars)
Products
Significant Events
Vulcan Materials Company
Overview
Performance
Figure 5-12: Total Vulcan Materials Revenue, 2004-2008 (in billions of dollars)
Figure 5-13: Vulcan Materials’ Asphalt Mix and Concrete Revenue and Asphalt
Mix Share of Total Operating Segment, 2004-2008 (in millions of dollars)
Figure 5-14: Vulcan Materials Company Asphalt Mix Price and Volume
Performance, 2004-2008 (in dollars and thousand short tons)
Products
Significant Events

Chapter 6: Economic & Marketplace Trends
Economic Crisis Peaks
Real GDP Growth Projected at Negative 0.8% for 2009
Figure 6-1: U.S. Current-Dollar GDP vs. Real GDP, 2000-2009 (in trillions of
dollars)
Inflation Rears Its Ugly Head

Figure 6-2: Percentage Changes in U.S. Current-Dollar GDP, Real GDP and the
GDP Price Index, 2001-2009 (percentage)
Economic Future Uncertain
Asphalt Product Producer Prices Skyrocket
Figure 6-3: Estimated Share of Total Material Cost, 1999-2008 (percentage)
Sharp Increase in Liquid Asphalt in 2008
Figure 6-4: Asphalt Paving Mixture & Block Manufacturing Producer Price Index
and the Asphalt Shingle & Coating Materials Manufacturing Producer Price
Index, 1999-2008 (index)
By Contrast, Asphalt Roofing Slower Growth
Figure 6-5: Year-over-Year Percentage Change in Asphalt Paving Mixture &
Block Manufacturing Producer Price Index and the Asphalt Shingle & Coating
Materials Manufacturing Producer Price Index, 1999-2008 (percentage)
Price Increases by Product
Paving Products: Mixtures See 17% Gain in 2008
Figure 6-6: Asphalt Paving Product Manufacturing Producer Price Indexes:
Emulsified Asphalt, Other Liquid Asphalt and Tar Paving Materials, Asphalt and
Tar Paving Mixtures (excluding liquid), 2005-2008 (index)
Figure 6-7: Year-over-Year Percentage Change in Asphalt Paving Product
Manufacturing Producer Price Indexes: Emulsified Asphalt, Other Liquid Asphalt
and Tar Paving Materials, Asphalt and Tar Paving Mixtures (excluding liquid),
2006-2008 (percentage)
Roofing Products See Relatively Modest Price Increases in 2008
Figure 6-8: Asphalt Roofing Product Manufacturing Producer Price Indexes:
Roofing Asphalts & Pitches, Coatings, and Cements; Prepared Asphalt & Tar
Roofing & Siding Products, 1999-2008 (index)
Figure 6-9: Year-over-Year Percentage Change in Asphalt Roofing Product
Manufacturing Producer Price Indexes: Roofing Asphalts & Pitches, Coatings,
and Cements; Prepared Asphalt & Tar Roofing & Siding Products, 1999-2008
(percentage)
Asphalt Input Prices: Crude Up 75%+
Figure 6-10: Crude Petroleum Price Indexes: Domestic Production and Imports,
1999-2008 (index)
Figure 6-11: Year-over-Year Percentage Change in Crude Petroleum Price
Indexes: Domestic Production and Imports, 1999-2008 (percentage)
Coker Projects May Further Reduce Asphalt Supply
Pavement Input Prices: Liquid Asphalt and Aggregate Up 7%
Figure 6-12: Primary Asphalt Pavement Commodity Input Price Indexes: Asphalt
and Construction Aggregates, 1999-2008 (index)
Figure 6-13: Year-over-Year Percentage Change in Primary Asphalt Pavement
Commodity Input Price Indexes: Asphalt and Construction Aggregates, 1999-
2008 (percentage)
Other Asphalt Pavement Input Costs
Figure 6-14: Secondary Asphalt Pavement Commodity Input Price Indexes:
Natural Gas and No. 2 Diesel Fuel, 1999-2008 (index)

Figure 6-15: Year-over-Year Percentage Change in Asphalt Pavement
Secondary Commodity Input Price Indexes: Natural Gas and No. 2 Diesel Fuel,
1999-2008 (percentage)
Concrete Construction Input Prices High
Figure 6-16: Concrete Construction Primary Commodity Price Indexes: Portland
Cement, Construction Aggregates and Carbon Steel, 1999-2008 (index)
Figure 6-17: Year-over-Year Percentage Change in Concrete Construction
Primary Commodity Price Indexes: Portland Cement, Construction Aggregates
and Carbon Steel, 1999-2008 (percentage)
Concrete May Benefit
Less Road Travel Not Easing Pressure on Aging Roads
Figure 6-18: Total 12-Month Total Vehicle Distance Traveled versus Gasoline
Producer Price Index, January 1998-August 2008 (billion miles)
Prices and Supply Jeopardizing Road Maintenance Asphalt Paving Budgets
Figure 6-19: Monthly Asphalt Prices by Selected State, January 2005- November
2008 (in dollars)
Summer Delays and Postponements
Administrations Get Creative
Warming Weather Trends Benefit Marketplace
Weather Disasters Prompt Government Emergency Financial Response
Asphalt as a Green Industry
Reclaimed Road Surfaces The Future of Municipal Paving
RAP Highest Recycling Rate Among Recycled Industrial Products
Industry Leadership in Use of Other Waste Products
Table 6-1: Asphalt Industry Recycling’s Report Card versus Other Industries,
2008
Labor Shortages and Immigration to Hamper Road Building
Illegal Immigrants May Not Fill the Ranks
Industry Unattractive to Younger Work Force
Warm Mix Asphalt Positioned to Usurp Hot Mix

Chapter 7: End User Markets
Paving Industry Consumes 93%
Asphalt Roofing Suffers with Residential Construction Downturn
Asphalt Roofing No Rebound in Sight
Paving Has A Friend in Obama
Figure 7-1: Estimated Share of U.S. Asphalt Consumption by End-User Market,
2008 (percentage)
Total Construction Spending Declines
Figure 7-2: Total U.S. Construction Spending, 2002-2008 (in billions of dollars)
Table 7-1: Total U.S. Construction Spending and Year-over-Year Percent
Non-Residential Spending Starts to Slow in 2008
Figure 7-3: Total Non-Residential Construction Spending and Percent of Total
Construction Spending, 2002-2008 (in billions of dollars)
Table 7-2: Total U.S. Non-Residential Construction Spending and Yearover-

Residential Spending Nosedives
Figure 7-4: Total Residential Construction Spending and Percent of Total
Table 7-3: Total U.S. Residential Construction Spending and Year-over- Year
Percent Change, 2002-2008 (in billions of dollars)
Highway & Street Construction Down from Mid-Decade Growth Rates
But Growth Curtailed Somewhat by Delays and Other Constraints
Figure 7-5: Total Highway & Street Construction Spending and Percent of Total
Non-Residential Construction Spending, 2002-2008 (in billions of dollars)
Table 7-4: Total Highway & Street Construction Spending and Year-over- Year
Percent Change (in billions of dollars)
State & Local Pavement Spending at $50 Billion for 2008
Figure 7-6: Total State & Local Pavement Spending and Percent of Total
Highway & Street Construction Spending, 2002-2008 (in billions of dollars) 175
Table 7-5: Total State & Local Pavement Spending and Year-over-Year Percent
Figure 7-7: Share of U.S. State & Local Highway & Street Construction Spending
by Type of Construction, 2007 (percentage)
Federal Spending and SAFETEA-LU
Figure 7-8: Safe, Accountable, Flexible, Efficient Transportation Equity Act: A
Transportation Research), 2005-2009 (in billions of dollars)
Table 7-6: Safe, Accountable, Flexible, Efficient Transportation Equity Act: A
Transportation Research) and Year-over-Year Percent Change, 2005-2009 (in
billions of dollars)
New Administration Could Mean Boon for Asphalt
Non-Residential Pavement Contractor Revenue Affected by Price Fluctuations
Figure 7-9: Total Non-Residential Pavement Contractor Revenues and Percent
of Total Highway & Street Construction Spending, 2002-2008 (in billions of
dollars)
Table 7-7: Total Non-Residential Pavement Contractor Revenues and Year-over
“Residential” Pavement Contractor Revenue Arcs Downward
Figure 7-10: Estimated Total “Residential” Pavement Contractor Revenues and
Percent of Total Highway & Street Construction Spending, 2002-2008 (in billions
of dollars)
Table 7-8: Total “Residential” Pavement Contractor Revenues and Yearover-
Roofing Contractor Revenues Decline 16% in 2008
Figure 7-11: Total Roofing Contractor Revenues and Percent of Total
Table 7-9: Total Roofing Contractor Revenues and Year-over-Year Percent

Appendix: Selected Corporate Addresses

Appendix: Selected Associations Addresses

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Asphalt manufacturing in the u.s.

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