Maio: Second-quarter performances bolstering confidence

Editor’s note: As part of our Road to Recovery coverage, P&Q is turning to some of the industry’s leaders for their takes on the road ahead. This month, leaders were posed with the following question: What is your expectation for aggregate demand in the coming months? Where do you anticipate the greatest demand to come from, and are there areas where you anticipate demand shortcomings?

I believe we will see demand continue to increase gradually for the remainder of 2020. 

The second-quarter earnings calls for the majors were all very positive. Even in the face of strong COVID-19 headwinds, we saw many companies beat earnings expectations. Martin Marietta and Summit Materials set financial records.

All companies, regardless of size, were beavering away in the first half of 2020 to reduce working capital and decrease operational expenditures. Weather impacts aside, I expect to see continued strong earnings for the remainder of the year, as these companies take advantage of strong demand and convert cost savings garnered in the first half of the year to the bottom line.

Several C-Level changes occurred or were announced during the second quarter. New CEOs are keen to make their mark quickly.

Alan Maio is an executive vice president at Proudfoot, a global management consulting firm working with leaders and their teams at all levels to design, implement and accelerate change.

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Featured image: P&Q Staff