Nye expects additional economic growth for Martin Marietta in 2014

By Kevin Yanik| January 30, 2014

Ward Nye, president and CEO of Martin Marietta Materials Inc., offered a positive industry outlook for 2014 upon the release of his company’s fourth quarter results.

“We are encouraged by various positive trends in our business and markets, especially in employment and private-sector construction,” Nye says in a press release. “Nonresidential construction is expected to grow in both the heavy industrial and commercial sectors. Shale development and related follow-on public and private construction activities are anticipated to remain strong.

“Further, the commercial building sector is expected to benefit from improved market fundamentals, such as higher occupancies and rents, strengthened property values and increased real estate lending. Based on these factors, we anticipate that the nonresidential end-use market will increase in the mid-to-high single digits.”

Nye adds that residential construction should continue to grow, driven by historically low mortgage rates, rising housing prices and total annual housing starts.

“We believe these trends will lead to double-digit volume growth in residential end-use shipments,” he says. “For the public sector, authorized highway funding from MAP-21 should increase slightly compared with 2013. Additionally, state initiatives to finance infrastructure projects are expected to grow and continue to play a more critical role in public-sector activity.

“Based on these trends and expectations, we expect aggregates shipments to the infrastructure end-use market to increase slightly.”

Cumulatively, Nye says Martin Marietta anticipates its aggregates product line shipments will be up between 4 and 5 percent this year, compared with 2013 levels.

“A variety of factors beyond our direct control may continue to exert pressure on our volumes, and our forecasted pricing increase will not be uniform across the company,” Nye says. “We expect aggregates product line direct production cost per ton will decrease slightly compared with 2013.