June 26, 2023

This paid piece is sponsored by Knife River South Dakota. 

All it takes is a quick drive around Knife River’s Sioux Falls quarry and ready-mix plant to realize development is far from slowing down.

“Things are really busy,” said Jim Simunek, ready-mix sales manager. “We’re up from a yardage standpoint, our employees are busy and working efficiently and enjoying being part of it.”

Across the Sioux Falls operation, which includes aggregate, concrete and asphalt, “the season got off to a slower start in April because of weather, but May was a really good month, and that’s continuing,” said Stu Horsted, vice president of sales.

“We’re well positioned to meet demand.”

 This time last year, the cement industry faced shortages from suppliers that required a few operational adjustments. It’s a different story so far in 2023.

“We’re not hearing anything about allocation issues right now,” Horsted said. “There’s always a chance for a rail issue or cement plant breaking down, but it’s nothing like last year.”

Knife River also has increased its contracted haulers to further boost responsiveness, which is key in supporting major projects such as downtown’s Steel District, Cherapa Place expansion and the parking ramp at the Sioux Falls Regional Airport.

“Nobody’s talking about a concrete shortage this year,” agreed Craig Lloyd, co-founder and board chairman of Lloyd Cos., developer of The Steel District.

“Between Knife River and Limoges Construction working very well together, they’ve continued to deliver for us. The service is consistent and has been for years.”

The 260-person team at Knife River is dedicated to managing demand, president Clark Meyer said.

“A lot of industry constraints have eased, and we’re looking forward to a strong year,” he said.

“We’re always looking for help, but the labor situation isn’t dire like it used to be. And while there have been concerns about a slowdown given interest rates, we think the work we’ve already got locked in will carry us through.”

Knife River also is keeping busy with large paving jobs, including on Arrowhead Parkway, a roundabout in Harrisburg, the new interchange at Interstate 29 and Benson Road, and soon at the expanded Veterans Parkway.

“We have seen a slowdown on the residential side, but the commercial and heavy-highway business have been going really great,” Simunek said. “Those markets have helped the economy locally and helped keep everyone going.”

Additional commercial projects have included the new Scherer headquarters at Foundation Park, the new Thornton Flooring at Bakker Landing in Tea, Augustana University’s Midco Arena and major school projects in Harrisburg.

“Our current workload has offered the capability of hiring additional staff to support more work, and hiring is going fairly well although we’re always looking for more,” Simunek said.

 “Coming down the road, I think the commercial sector is going to pick up, and I think we’re going to see an uptick in warehouse. Multifamily on the residential side will continue to be big in addition to regional growth. Drive through Harrisburg and you’ll see a Knife River truck everywhere you look.”

Looking ahead, “I think the demand is going to continue for at least this year and next,” Lloyd agreed. “Our volume this year is essentially as much as it was last year. Our carryover into 2024 might cut us back just a little, but I look at it as an adjustment. Nobody is going to see cutbacks because of that; they just might get to relax a little.”

The next couple of years for roadwork also could be historically high, thanks to federal funding, Simunek added.

“It’s going to still be a great couple years. I’ve been saying for the last three years I don’t think it can get any better or it might not stay this good, and it has.”

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