Article

Creating Opportunities in the Concrete Block and Paver Industry

As Housing activity strikes new lows that haven’t been seen since 2003, Mark Zandi, chief economist with Economy.com. said the housing slump is far from over.  “ Today’s numbers are a much closer representation to reality.  I think the market is soft, sales are down, construction is off, and pricing is at best flat.”         ( Home Sales Reports Send Mix Messages, By Chris Arnold, npr.org, May 26, 2007). “ Last month, Pulte Homes Inc. posted a quarterly loss while D.R. Horton Inc. said its earnings fell by 85 per cent.  Centex Corp. saw a 49-per cent drop in profits and calls the housing downturn one the most difficult slumps in 25 years.”  (Home Sales Reports Send Mix Messages, By Chris Arnold,  npr.org, May 26, 2007)  The concrete block industry has an opportunity to capitalize on new technologies that can make the block producers and pavers big winners.  By capitalizing on new technologies in the concrete block and paver industry, the producers can turn slowdown time in production, into new ways to produce new revenues for their companies

One of the opportunities that the concrete block and paver manufacturers will have is in the synthetic aggregate technology.  The synthetics aggregate market alone is a $2+ billion industry in the United States, with estimates that only about 25-30% of currently available recyclable materials are being utilized. There are about 820 coal burning power plants in the U.S. producing about 56% of the U.S. electrical power. In 2001, the waste byproducts (also called smokestack emissions) from coal plants alone accounted for 62,000,000 metric tons of fly ash, plus another 17 Million  metric tons of bottom ash (which equates to about 60 metric tons per plant (120 tons fly ash , 80 tons bottom ash) (Energy Info. Administration 2002). Seventy (70%) of the non-cementitious ash and bottom ash was dumped into landfills throughout the United States (USGS). The U. S. coal power industry is under increasing pressure to reduce sulfur dioxide emissions further (Clean Air Act 1990), and only 30% of the ash was recycled (Kelly/van Oss).

There are three categories of synthetic aggregates, grouped by production method, the mixture of recycled materials, and the end product form. In general Synthetics aggregates have an advantage in that they can be produced year round or stockpiled, instead of just during construction seasons, and they carry tax advantages in many states and countries. Synthetic aggregates may be 30-70% lighter than mineral aggregate. While some synthetics can be used as roadbed underlay, they are not generally used as a substitute for natural mineral aggregate in many industries.

Group 1: Waste product that is heated in a blast furnace or rotary kiln to temperatures between 1000 - 4500 degrees Fahrenheit, and then turned into pellets.   Waste materials generally used in this process includes sewage sludge, incinerated sewage sludge, pulverized fuel ash, oil sands, slag, and other solid waste materials

Group 2:  Combination of only non-cementitious fly ash with a binder.
The synthetic aggregate is pressed or extruded into pellets, Fly ash is a smokestack waste/byproduct after the burning of coal in power plant operations, and the non-cementitious fly ash can be utilized in both Group 2 and 3 processes.

Group 3: Combination of  recycled products, such as non-cementitious fly ash, bottom ash, recycled plastics, recycled glass, and other recycled materials. This group primary market is every industry where lightweight concrete with high compressive and tensile strength is of primary concern. This group  can be made from recycled materials, such as a mixture of plastic, fly ash , or bottom ash (a waste product of coal fire electricity plants) both fly ash ( cementitious), and bottom ash. This group of synthetics aggregate is a lightweight substitutes for mineral lightweight base aggregate.  The combined materials are pressed or extruded into a solid block. The solid block is then crushed with a standard rock crusher into a lightweight aggregate.  All standard aggregate sizes are available, it can be produced in current concrete block and paver plants, plus the aggregate products meet both ASTM 330 and 331 standards.  If it “looks like a rock, then it’s a rock, but  lighter”.  Estimates are that only about 25-30% of these recyclable materials are being utilized now, with the rest, unfortunately, dumped in landfills.  Imagine the growth industry potential as most ash is used to make economically beneficial products.  This is the technology that the concrete block and paver manufacturers will be interested in,  as this technology can be produced in a concrete block and paver manufacturing environment.

 This Aggregate (ELITE Aggregates) is high strength, lightweight, with weights ranging from 10-65 pounds per cubic foot, and can be used in multiple industries. The ultra-lite concrete using ELITE Aggregate as a total aggregate replacement  weighs 95 pounds per cubic foot, with compressive strength of 9000 psi, and a tensile strength of 11% of the compressive strength. The mixtures can be varied to make a wide range of products, wherever high compressive and high tensile strength is requested. Unlike the other two groups, it can be also be mixed as a total replacement of aggregate in concrete, and the concrete can be cut, nailed, and screwed with ordinary tools.

This group's primary market would be concrete products such as ultra lightweight
concrete for insulated concrete forms, prestress/tilt-up concrete, concrete roof shingles, wall board, block, and pavers, stucco, concrete wall or cultured stone, ultra lightweight concrete dry mix (bags), well cementing and grouting, culvert pipe, concrete underground vessels, pan floors/decking, geo-technical fill, landscape fill (rock), architectural cultured stone, and horticulture applications.

This technology will expand the recycling of recycled materials.

Synthetic aggregates decrease the negative impact on the environment, with each having benefits in its own niche. ELITE Aggregates offer new solutions to very old problems. ELITE Aggregates is the only one that holds two U.S patents and a U.S. patent pending for the manufacturing process  at this time.  Their forte is the joining of supply and demand of the aggregate market to the reduction of waste through recycling, via the production of more flexible and profitable products

Now that the discussion of synthetic aggregates has taken place lets get down to the green of it. There are two parts of the green that will be discussed.  First is the economic opportunity when producing Elite Aggregates. Let’s look at what is happening to lightweight mineral based aggregates such as Expanded Shale and Clay and Slate, Pumice /Pumicite and Perlite. The Expanded Shale and Clay and Slate and Perlite use extreme heat to process the material into lightweight aggregate.  As energy prices rise then will the cost of producing these lightweight aggregates. Most of mineral deposits for this material are not located near their customers. This also means that the transportation cost will be higher.  The U.S. Geological Survey, Mineral Commodity Summaries, July 2006 estimates the selling price of lightweight mineral aggregates at $40.00 to $90.00 per ton depending on the lightweight aggregate (USGS, Mineral Commodity Summaries, July 2006).  As fuel prices are rising this year, then the price of production for these aggregates must also rise. 

So let’s then talk about Elite Aggregates.  Most coal generating power plants east of the Rocky Mountains is located in our large cities. Likewise the concrete block and paver producers are located in the same areas. The majority of lightweight aggregate customers are located in these areas.  The cost to produce ELITE Aggregates should cost less that $20.00 per ton in most cases.  Likewise ELITE Aggregates should command similar prices to those of the Mineral Base Lightweight aggregates. 

The second part of the green is the use of recycled material in new products.  Like in the 1970s, the use of recycled products is coming into demand and just like in the past producers and manufacturers are capitalizing on the opportunities that use recycled material in their products.

 In some cases city, state and federal governments may also give tax incentives to those producers who uses recycled material in their products.  The general public is looking for those products that use recycled material in the manufacturing process.

The time is now for the Concrete Block and Paver manufacturer to join with ELITE Aggregates to produce the “The Synthetic Lightweight Aggregate for the 21stCentury”. For information about ELITE Aggregates and Licensing opportunities for manufacturing, please contact: david@eltieaggreates.com

By David M. Shulman