Supply and Demand
| (Millions of Tons) |
2005 |
2010 |
2015 |
2020 |
 |
| San Francisco Bay |
|
|
|
|
|
|
| Total Demand |
39.3 |
42.3 |
44.3 |
47.0 |
| Local Production |
30.2 |
29.7 |
26.2 |
24.8 |
| Deficit |
(9.1) |
(12.6) |
(18.1) |
(22.2) |
|
|
|
|
|
|
| Total Coastal California * |
|
|
|
|
|
|
| Total Demand |
141.9 |
150.1 |
156.4 |
167.2 |
| Local Production |
128.9 |
109.6 |
97.0 |
79.5 |
| Deficit |
(13.0) |
(40.5) |
(59.4) |
(87.7) |
|
|
|
|
|
|
|
|
|
|
Source: 43-101 Technical Report/Holmes Reserves LLC.
*San Francisco, Los Angeles, and San Diego |
|
Although the overall demand for construction aggregates reflects economic cycles, large public works construction projects such as interstate highways, airport construction and port expansion can significantly influence regional aggregate consumption. In non-coastal, less urbanized areas, plentiful supplies of good quality aggregate can usually be found and most quarries deliver construction aggregate within a 30-mile radius. If nearby quarries do not exist, however, transportation costs may rapidly increase, adding significantly to delivered prices.
The 2005 Market Report confirmed the growing gap between increased demand for construction aggregates and the availability of local supplies in urban coastal centers of California.
The growing shortage of concrete grade aggregates has led to higher delivered prices, as demand is satisfied by increased volumes of materials hauled over longer distances, including increased quantities of construction aggregate imported from British Columbia by sea.
In both northern and southern California, overall demand for construction aggregate is driven primarily by population growth and the resulting need for infrastructure expansion and maintenance. California's expected population growth for the period 2000 to 2020 is at a rate of 1.11% per year compared with 0.87% for the nation as a whole.
Based on the 2005 Market Report, projected local production deficits for the combined areas of San Francisco Bay, Los Angeles basin and San Diego amount to 88 million tons per year by 2020.
Aggregate Supply Agreements | 
