Martin Marietta anticipates further growth in 2016

By |  February 9, 2016

martin marietta logoMartin Marietta Materials Inc.’s shipments to the infrastructure market increased 5 percent last year.

According to the company, which recently released its fourth-quarter and 2015 year-end performance report, the growth reflects state-level funding initiatives that are positively impacting key states in which it resides. Major infrastructure activity is accelerating at the state level and, when combined with the recently passed FAST Act, will likely increase the rate of infrastructure growth, the duration of projects and the mix of aggregate-intensive new construction for 2016 and beyond, the company reports.

“Our outlook for 2016 reflects growing underlying demand and strong pricing across our entire geographic footprint,” says Ward Nye, chairman, president and CEO of Martin Marietta. “National employment growth, a stimulus for construction activity, remained robust throughout 2015, surpassing the pre-recession peak by nearly 5 million jobs. These job gains, in addition to substantial contractor backlogs resulting from historic rainfall in 2015, should fuel growth and further recovery of the U.S. construction industry.”

Positive private sector construction activity and favorable population dynamics in Martin Marietta’s key markets are additional reasons for optimism, Nye says. The FAST Act has emboldened the company, as well.

“The FAST Act provides the funding certainty states have needed to commit to much-needed longer-term projects to improve America’s transportation network,” Nye says. “We believe the FAST Act, coupled with state-level funding initiatives in four of our top five states – namely Texas, North Carolina, Georgia and Iowa – will drive large, multi-year, aggregate-intensive construction projects.

“Further, it is also likely we will see meaningful projects in rural areas of those states that have been infrastructure starved during the last decade and will now be better able to develop new avenues for growth and commerce,” he adds. “We are well positioned, through our leading market positions and strong foundation, to capitalize on these opportunities and enhance long-term shareholder value.”

In 2016, Martin Marietta expects its aggregates product line pricing to increase from 6 to 8 percent. Volume growth is expected to increase from 5 to 7 percent.

“These gains in aggregates, coupled with pricing improvements across the downstream and cement businesses, together with our cost discipline and strategic growth initiatives, are expected to drive increased earnings for the year,” Nye says.

Kevin Yanik

About the Author:

Kevin Yanik is the editor-in-chief of Pit & Quarry magazine. Yanik can be reached at 216-706-3724 or kyanik@northcoastmedia.net.

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