Martin Marietta’s preliminary view of 2019

Martin Marietta Materials anticipates mid-single-digit growth in both aggregate pricing and shipments in 2019.

Supported by third-party forecasts, Martin Marietta believes the current construction cycle will continue to expand at a steady pace next year for each of its three primary construction end-use markets. Specifically, the company expects the following activity in these markets:

1.Ÿ Infrastructure construction activity should benefit from the funding provided by the FAST Act as state departments of transportation and contractors continue to address labor constraints and the benefits of further regulatory reform emerge. Additionally, state and local initiatives that support infrastructure funding – including gas tax increases, bond programs and other ballot initiatives – continue to garner voter approval at historically attractive levels and will play an expanded role in public-sector activity, according to Martin Marietta. Third-party forecasts support increased infrastructure investment in 2019 and beyond, particularly for aggregate-intensive highways and streets.

Ÿ2. Nonresidential construction activity should increase. It should grow in both the commercial and heavy industrial sectors for the next several years across many of Martin Marietta’s key markets, as supported by third-party forecasts.

Continued federal regulatory approvals, supported by higher oil prices, should contribute to increased aggregate consumption from the next wave of energy-sector projects, particularly along the Gulf Coast. Construction activity for these projects is expected to begin in earnest in 2019 and beyond, Martin Marietta says.

Ÿ3. Residential construction should continue to grow. Martin Marietta’s management team believes a shortage of single-family housing units exists, particularly for entry-level homes. This is a need the homebuilding industry is now beginning to address, the company says.

Martin Marietta’s position in southeastern and southwestern states offer opportunities for gains in single-family housing, driven by factors such as affordable land, lower taxes and fewer regulatory barriers.