CONEXPO-CON/AGG VIP SHOW GUIDE contains Floor Plans and a complete listing of companies exhibiting at the ConExpo-Con/Agg 2014 trade show in Las Vegas March 3-7, 2014. It also contains 2014 forecasts for the Aggregate, Concrete and Cement industries

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Page 23 of 93

AGGREGATES & CONSTRUCTION MARKET REPORT The smaller institutional categories generally weakened in December, with public buildings (courthouses and detention facilities) down 32 percent; churches, down 44 percent; and amusement-related work, down 46 percent (compared to the pre- vious month which included the $763 million Vikings Multipur- pose Stadium in Minneapolis). The transportation terminal category retreated a slight 1 per- cent in December, and included the start of a $230 million termi- nal renovation project at Los Angeles International Airport. Residential building in December dropped 6 percent to $205.3 billion (annual rate), with both sides of the housing market easing back. Single-family housing slipped 3 percent, as recent months have shown more of an up-and-down pattern after the consistently steady gains witnessed earlier in the year. When viewed on a quarterly basis, single-family housing still registered consistent growth during 2013, with the fourth quar- ter up 8 percent compared to the first quarter. Multifamily hous- ing in December retreated 13 percent after November's increase of the same magnitude. December's largest multifamily projects were smaller in scale than what had been reported in the previous month, but still included such substantial entries as a $159 million apartment building in Sunny Isles Beach, Fla., a $128 million condomini- um tower in Honolulu, and a $127 million apartment building in Brooklyn, N.Y. Nonbuilding construction in December soared 40 percent to $180.6 billion (annual rate), which was the highest monthly rate during 2013. Bridge construction jumped 210 percent, boosted by the $1.5 billion Goethals Bridge replacement project in Staten Island, N.Y., and Elizabeth, N.J. Other large bridge projects that were entered as December starts were $380 million for bridge construction in Stillwater, Minn., and $297 million for bridge construction on the I-35W reconstruction project in Texas. The highway construction category also had a strong Decem- ber, rising 19 percent with the help of $693 million allocated to highway work on the I-35W project in Texas. River/harbor development in December rose 21 percent, sup- ported by the start of a $290 million seawall replacement project in Seattle. Sewer construction in December increased a moderate 6 percent, while water supply construction fell 6 percent. The miscellaneous public works category (which includes such diverse project types as pipelines, mass transit, and outdoor sports stadiums) dropped 14 percent in December, although it did include a $425 million stadium renovation project for Texas A&M University in College Station, Texas. The electric utility category in December departed from its generally downward trend during 2013, rising 127 percent. Large power plant projects included as December construction starts were two natural gas-fired plants located in New Jersey ($842 million) and Pennsylvania ($800 million), as well as three wind power facilities located in Texas ($300 million and $200 mil- lion) and Oklahoma ($225 million). For 2013 as a whole, total construction starts advanced 6 per- cent to $516.8 billion. This follows the 10 percent gain reported for 2012 (which drew support from a record amount of new elec- tric utility starts that year) and modest 2 percent gains in both 2010 and 2011. If the volatile electric utility category is excluded, total construction starts in 2013 would be up 14 percent, follow- ing a 9 percent gain in 2012 and essentially flat activity during 2010 and 2011. With highway construction up 10 percent in 2013, highway and bridge construction together registered a 21 percent gain for the full year. The top five states for highway and bridge construc- tion in 2013, ranked by the dollar volume of activity, were Texas, New York, California, New Jersey and Virginia. MARKET TO GROW The American Road & Transportation Builders Association (ARTBA) maintains that the transportation infrastructure construction market will grow 5 percent to $135.8 billion in 2014. ARTBA's 2014 forecast for transportation modes includes: • Bridges/Tunnels – Bridge and tunnel construction is expected to grow from $28.5 billion in 2013 to a record-level $30.1 billion next year. ARTBA says large projects in 10 states – California, Florida, Illinois, New Jersey, New York, Pennsylvania, Texas, Kentucky, Virginia and Washington – will account for about half of U.S. market activity in this sector. • Ports/Waterways – The port and waterway construction mar- ket, which has grown by a third since 2011 in anticipation of increased sea trade through the Panama Canal starting in 2015, is expected to grow another $100 million, to $3.0 billion next year. The top market states will be: California, Florida, Illinois, Louisiana, Mississippi, New Jersey, New York, Texas, Virginia and Washington. • Airport Runways/Terminals – The total value of airport runway and terminal construction is expected to increase 17 percent to $14.7 billion in 2014, ARTBA forecasts. Market-driving states will include: Arizona, California, Colorado, Florida, Georgia, Illi- nois, Massachusetts, New York, Ohio, Tennessee, Texas, Utah, Virginia and Washington. • Light Rail, Subways/Railroads – The domestic light rail, subway and railroad construction markets will continue to see growth in 2014. Subway and light rail work will grow five percent to $7.9 billion from $7.5 billion. Heavy rail investment, largely by Class 1 freight railroads, will increase 8 percent to $12.6 billion this year from $11.6 billion. Increase in demand to transport goods, including shale and crude oil, as well as multi-modal improve- ments for better port-rail connections, are driving higher levels of railroad investment. Based on recent state and local gov- ernment contract awards, these states will be moving forward on key projects: California, Colorado, Washington, D.C., Florida, Illinois, Massachusetts, Minnesota, New Jersey, New York, Ore- gon, Pennsylvania, Texas and Washington. 20 • March 2014 VIP Show Guide U854.indd 20 2/14/14 12:10 PM

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