Nye, Martin Marietta look to 2018’s second half

By |  July 30, 2018

Nye

The first half of 2018 was largely positive for Martin Marietta, and the company remains confident about both its near- and long-term growth trajectory.

In fact, Martin Marietta expects 2018 to be another record-setting year for the company.

“We believe the United States is in the midst of a construction recovery that will continue through the remainder of 2018 and beyond,” says Ward Nye, chairman, president and CEO of Martin Marietta. Consistent with our forecasts at the beginning of the year, we expect construction activity to accelerate during the second half of this year, with faster growth in our key geographies due to these regions’ attractive economic drivers and population trends.”

The company expects growth in all three primary construction end-use markets as the current broad-based construction recovery continues on an extended basis. Infrastructure construction activity should benefit from the funding provided by the FAST Act as state departments of transportation and contractors address labor constraints and the benefits of further regulatory reform emerges, Martin Marietta says.

According to Martin Marietta, state and local initiatives that support infrastructure funding, including gas tax increases, bond programs and other ballot initiatives, continue to garner voter approval and will play an expanded role in public-sector activity. Third-party forecasts support increased infrastructure investment in the second half of 2018, particularly for aggregate-intensive highways and streets.

Nonresidential construction activity should increase in both the commercial and heavy industrial sectors for the next several years as supported by third-party forecasts, the company adds. Martin Marietta’s management expects new energy-related projects, particularly along the Gulf Coast, will bid in 2018 with broader construction activity beginning in earnest in 2019 and beyond as regulatory permitting and final investment decisions are made and approved.

Meanwhile, Martin Marietta expects residential construction to be robust, particularly in key markets. The company expects residential to be bolstered by positive employment and population trends, historically low levels of construction activity over the previous years, low mortgage rates and increased lot development.

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