NAICS 212321 Quarterly Industry Report
Construction Sand and Gravel Mining
Comprehensive industry research for valuation professionals, business owners, buyers, and lenders
NAICS Code: 212321Sector: Mining, Quarrying, and Oil and Gas Extraction (21)Updated: Q1 2026
About This Report
This industry profile for Construction Sand and Gravel Mining (NAICS 212321) draws on data from the U.S. Census Bureau[10], U.S. Geological Survey[6], Bureau of Labor Statistics[11], and SBA size standards database[7]. Published by Fair Market Value and updated quarterly, it provides valuation professionals, construction materials analysts, and aggregate industry investors with current market data. All quantitative claims are sourced to publicly verifiable databases.
Industry Snapshot
Key metrics for the construction sand and gravel mining industry.
NAICS Sector
21
Mining, Quarrying, and Oil and Gas Extraction
Industry Definition & Overview
Construction Sand and Gravel Mining (NAICS 212321) encompasses establishments primarily engaged in operating sand and gravel pits, dredging for sand and gravel, and washing, screening, and grading sand and gravel for construction use per the U.S. Census Bureau[5]. Activities include pit sand mining, bank gravel extraction, river and lake dredging, and aggregate processing through washing, screening, and classification equipment.
U.S. construction sand and gravel production reached an estimated 900 million metric tons in 2023 per USGS[6] mineral commodity data, making it the most consumed mineral commodity by volume in the country. Over 6,700 operations produce sand and gravel across all 50 states, with Texas, California, Arizona, Minnesota, and Michigan ranking as top producers. Average per capita consumption of sand and gravel reaches roughly 7,000 pounds annually when accounting for residential, commercial, and infrastructure construction demand. Vulcan Materials Company, Martin Marietta Materials, and Heidelberg Materials maintain the largest aggregate portfolios among publicly traded producers, while thousands of regional and local operators serve community-level construction markets.
Per the SBA Table of Size Standards[7], the size standard is $30.5 million in average annual receipts. The Mine Safety and Health Administration[8] inspects surface sand and gravel operations at least twice annually. EPA[9] Clean Water Act permits govern stormwater discharge and process water from washing operations, with wetland and waterway dredging subject to U.S. Army Corps of Engineers Section 404 permitting requirements.
What's Included in This Industry
- Open pit sand and gravel extraction
- River, lake, and marine sand dredging operations
- Sand and gravel washing, screening, and classification
- Concrete sand production to ASTM C33 specifications
- Road base and fill gravel production
- Manufactured sand from crushing oversize gravel
- Sand and gravel stockpiling and load-out operations
- Pit reclamation and post-mining land restoration
- Portable crushing and screening plant operations
- Underwater aggregate deposit evaluation and extraction
NAICS Classification Hierarchy
| Level | Description | Code |
|---|---|---|
| Sector | Mining, Quarrying, and Oil and Gas Extraction | 21 |
| Subsector | Mining (except Oil and Gas) | 212 |
| Industry Group | Nonmetallic Mineral Mining and Quarrying | 2123 |
| NAICS Industry | Sand, Gravel, Clay, and Ceramic and Refractory Minerals Mining and Quarrying | 21232 |
| National Industry | Construction Sand and Gravel Mining | 212321 |
Related NAICS Codes
| Code | Description | Relationship |
|---|---|---|
| 212312 | Crushed and Broken Limestone Mining and Quarrying | Crushed and Broken Limestone Mining and Quarrying produces crushed stone aggregate that competes with natural sand and gravel for road base, concrete, and asphalt applications, with material selection between natural gravel and crushed stone depending on local availability and project specifications |
| 212322 | Industrial Sand Mining | Industrial Sand Mining produces specialized high-purity silica sand for glassmaking, foundry casting, and hydraulic fracturing applications, while construction sand mining supplies lower-purity aggregate for concrete, fill, and road base at lower price points |
| 327320 | Ready-Mix Concrete Manufacturing | Ready-Mix Concrete Manufacturing purchases concrete sand and coarse gravel as primary ingredients for structural concrete production, with concrete batch plants maintaining dedicated supply agreements with nearby sand and gravel operations for consistent material delivery |
| 237310 | Highway, Street, and Bridge Construction | Highway, Street, and Bridge Construction consumes sand and gravel for road base layers, concrete structural elements, and drainage applications on transportation infrastructure projects, with aggregate specification requirements driving production of specific gradation sizes |
| 237120 | Oil and Gas Pipeline and Related Structures Construction | Oil and Gas Pipeline and Related Structures Construction uses sand and gravel for pipe bedding, trench backfill, and access road construction on pipeline right-of-way projects, with aggregate demand from energy infrastructure creating seasonal production spikes in active drilling regions |
Geographic Concentration
Top states by share of national establishments.
| # | State | % Est. | Total Est. |
|---|---|---|---|
| 1 | Texas | 9.8% | 219 |
| 2 | California | 5.9% | 132 |
| 3 | New York | 5.3% | 119 |
| 4 | Michigan | 5.0% | 112 |
| 5 | Ohio | 4.2% | 93 |
| 6 | Washington | 3.9% | 87 |
| 7 | Minnesota | 3.7% | 83 |
| 8 | Indiana | 3.5% | 79 |
| 9 | Arizona | 3.3% | 73 |
| 10 | Colorado | 2.8% | 62 |
% Of Establishments
0%
10%
Source: County Business Patterns, U.S. Census Bureau[3]
SBA Lending Summary
248
Total SBA Loans
$123.4M
Total Loan Volume
$498K
Average Loan Size
10 yrs
Average Loan Term
10.76%
Average Interest Rate
1,960
Jobs Supported
Source: SBA 7(a) Program Data, U.S. Small Business Administration — FY 2025[4]
Key Insight: Per the SBA Table of Size Standards[7], Construction Sand and Gravel Mining (NAICS 212321) has a size standard of $30.5 million in average annual receipts for federal contracting purposes. SBA lending programs[12] support washing plants, screening equipment, and working capital for qualifying sand and gravel operations. Eligible businesses can access SBA 7(a) loans[13] for working capital, equipment, and acquisition financing, while 504 loans[14] support major fixed-asset purchases including real estate and heavy machinery.
Top SBA Lenders
| # | Lender | Loans | Volume | Avg Loan |
|---|---|---|---|---|
| 1 | Lewis & Clark Bank | 8 | $40.0M | $5.0M |
| 2 | Northeast Bank | 144 | $28.9M | $201K |
| 3 | Ent CU | 8 | $21.2M | $2.6M |
| 4 | Newtek Bank, National Association | 16 | $20.0M | $1.3M |
| 5 | Lendistry SBLC, LLC | 16 | $4.8M | $300K |
Frequently Asked Questions
Common questions about this industry.
What is the NAICS code for sand and gravel mining?
NAICS 212321 covers construction sand and gravel mining including pit mining, dredging, and aggregate processing per the U.S. Census Bureau[5]. Industrial sand mining is classified separately under NAICS 212322.
How much sand and gravel does the U.S. produce?
U.S. construction sand and gravel production reached an estimated 900 million metric tons in 2023 per USGS[6] data, making it the most consumed mineral commodity by volume in the country from over 6,700 operations.
What is the SBA size standard?
Per the SBA size standard[7], the threshold is $30.5 million in average annual receipts for federal small business contracting eligibility and SBA lending products for sand and gravel mining firms.
What is construction sand used for?
Construction sand serves as fine aggregate in ready-mix concrete (ASTM C33 specification), bedding for underground utilities, mortar sand for masonry, fill material for grading, and base course component for road construction per industry material specifications and building codes.
How much aggregate does the average American consume?
Average per capita consumption of sand and gravel reaches roughly 7,000 pounds annually per industry data, with each mile of four-lane highway requiring over 30,000 tons of aggregate including both crushed stone and natural sand and gravel materials.
Which states produce the most sand and gravel?
Texas, California, Arizona, Minnesota, and Michigan rank as top producing states per USGS[6] state production data, with output distributed across all 50 states from over 6,700 active operations.
What environmental permits are needed for sand mining?
EPA[9] Clean Water Act permits govern stormwater and process water discharge from washing operations. Dredging in wetlands and navigable waterways requires U.S. Army Corps of Engineers Section 404 permits, with state mining permits and local zoning approvals also required.
Why are sand and gravel deposits being depleted near cities?
Urban expansion covers natural sand and gravel deposits with development, while zoning restrictions and community opposition limit new pit permits near population centers per industry analysis. As local deposits deplete, construction markets increasingly rely on crushed stone substitutes or longer-haul delivery from rural operations.
Sources & References
Government datasets and editorial sources used in this report.
- [1]U.S. Bureau of Labor Statistics, Quarterly Census of Employment and Wages bls.gov
- [2]U.S. Census Bureau, Economic Census census.gov
- [3]U.S. Census Bureau, County Business Patterns census.gov
- [4]U.S. Small Business Administration, SBA 7(a) Loan Program Data data.sba.gov
- [5]U.S. Census Bureau census.gov
- [6]USGS usgs.gov
- [7]SBA Table of Size Standards sba.gov
- [8]Mine Safety and Health Administration msha.gov
- [9]EPA epa.gov
- [10]U.S. Census Bureau data.census.gov
- [11]Bureau of Labor Statistics bls.gov
- [12]SBA lending programs sba.gov
- [13]SBA 7(a) loans sba.gov
- [14]504 loans sba.gov
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