Texas producers talk infrastructure at TACA meeting

Says FMI Capital Advisors’ Rob Mineo: “Texas is a very attractive place for population growth, and that means a strong demand for construction materials.” Photo: TACA

The Texas Aggregates & Concrete Association (TACA) welcomed more than 520 attendees to its annual meeting June 15-17 at the JW Marriott San Antonio Hill Country Resort & Spa.

According to TACA, meeting highlights included presentations from National Stone, Sand & Gravel Association (NSSGA) and FMI Capital Advisors representatives, who aided TACA member companies in navigating the challenging economic, political and post-pandemic environment.

“There are many opportunities for the Texas aggregates industry – one of the most productive in the nation and well positioned to bring to market the materials needed to satisfy the state’s enormous growth,” says Michele Stanley, NSSGA’s vice president of government and regulatory affairs. “New funding by the Infrastructure Investment & Jobs Act (IIJA) is one of them.”

Stanley says states will have about a 30 percent increase in funding for highway and transportation programs through the $1.2 trillion IIJA, which includes $550 billion in new infrastructure spending above baseline levels. Over the next five years, TACA reports that Texas will receive $31.23 billion in federal highway and transit funds, $1.2 billion for airports and access to $125 billion in competitive grants.

“Texas is a very attractive place for population growth, and that means a strong demand for construction materials,” says Rob Mineo, director at FMI Capital Advisors. “However, headwinds include inflation’s impact on profitability, increasing interest rates, a looming recession, supply chain disruptions, labor shortages, the Russia-Ukraine conflict and any resurgence of COVID. Nevertheless, the construction materials industry is well positioned to weather a potential macroeconomic downturn.”

Josh Leftwich, TACA president and CEO, says IIJA will bring great opportunities to the Texas aggregate industry.

“This monumental bill promises vital investment in our roads, bridges, trains, broadband access, drinking water and much more,” he says. “Our industry will continue to work closely with regulators, legislators, local communities and all stakeholders to provide the materials Texas needs to achieve its enormous growth.”