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Reddin: Backlogs, continuing resolution should sustain industry through 2020

By |  August 5, 2020
Photo: George Reddin

Reddin

The remainder of 2020 will benefit from backlogs and funding, even if only via temporary solutions.

Aggregate producers will continue to supply hot-mix asphalt contractors and ready-mix concrete producers as they complete existing work on hand during the remainder of the year. While it looks unlikely that Congress will reauthorize the federal highway bill, there is reason to believe the appropriations committee will pass a continuing resolution at similar levels of funding.

Additionally, it appears there is momentum to shore up the Departments of Transportation through September and likely for the balance of the year. This, plus potential from the private sector as the economy gradually reopens, will help aggregate producers have a good second half of the year.

George Reddin is a managing director with FMI Capital Advisors Inc., FMI Corp.’s investment banking subsidiary. He specializes in mergers and acquisitions and financial advisory services.

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. Leaders such as Reddin were posed with the following question: As you look to the remainder of 2020, what factors give you reason for optimism about the aggregate industry?


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