As you all know, we have become involved in building a large, world-class speedway in Newton, Iowa now known as the Iowa Speedway.  Our partner and track designer on the project is NASCAR driver Rusty Wallace.  His comments made to USA Today after driving on our dirt surface prior to rock and asphalt surfacing was “It will be the best damn track in the world.”

Our crews have been actively involved in designing, scheduling, and building.  Everyone is doing a great job.  We are all proud of what’s being done here at this speedway.  We promise you lots of exciting races and concerts.  Hope to see you come out to any of our future scheduled events. To locate these events you can go to the speedway website at www.iowaspeedway.com.

 Asphalt oil prices took a huge price increase two months ago and it’s causing significant problems for the asphalt paving industry to remain competitive on new construction.  Even today we cannot get a firm price for asphalt cement for the future due to the upward price potential.

As I see it, the cause for this price hike is due to the fact that the oil companies are going to sell their refined oil at its best financial price point.  If diesel fuel sells for $3.00/gal then asphalt cement, which comes from the bottom of the crude barrel, will either be sold for an equivalent amount or the refiners will choose to refine it down to diesel fuel so they can get $3.00/gal.  In case you were wondering, a ton of asphalt cement has 240 gallons in it.  240 gallons at $3.00/gallon equals $720.  We are beginning to see asphalt cement prices in the $400/ton range.  Last year asphalt cement was under $270.  A $100 increase in asphalt cement translates to over $6.00 per ton increase in our finished hot mix cost, as we put about 6% asphalt cement in a ton of hot mix.

As the price of crude rises over $70/barrel, we will continue to see $3.00/gal diesel fuel.  Will asphalt cement soon sell for $720/ton?

Please be aware of the fuel you are consuming.  We have many high fuel usage vehicles.  With the recent increase in fuel this past year, the impact on our bottom line will become much more significant.

Share rides when you can.  Do not let vehicles idle unnecessarily.  Think about whether the vehicle you presently drive is absolutely necessary if it’s a large fuel user and you don’t commonly pull other equipment.  Consider what your needs are 95% of the time; not what you need for 5% of the time.  All these thoughts will help conserve our non-renewable resource and save money.

After all we are in a very competitive market and we plan to come out the winner.  Thanks for your help.     

Remember to have a safe summer.