CONEXPO-CON/AGG VIP SHOW GUIDE 2014

2014

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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AGGREGATES & CONSTRUCTION MARKET REPORT "The construction industry in 2013 made progress towards establishing a more broad-based recovery, after several years in which the upturn was more limited in scope," stated Robert A. Murray, chief economist for McGraw Hill Construction. "Housing continued to lead the way, strengthening throughout much of 2013, and it was joined by a faster pace for commercial building, albeit from low levels. The institutional building sector registered a considerably smaller decline than in prior years, as its lengthy downturn appears to be ending. The public works sector in 2013 showed surprising strength, helped by the start of several major projects even amidst restrained government spending. Running counter in 2013 was a steep drop for new electric utility starts, after the robust amount reported in 2012. For 2014, the prospects look good for total construction, with growth anticipated for housing and commercial building, while the institutional building sector at least stabilizes." For 2013 as a whole, nonresidential building increased 7 per- cent to $168.6 billion, shifting to an upward direction after the 5 percent decline reported for 2012. The commercial categories overall advanced 16 percent, faster than the 13 percent gain wit- nessed in 2012. The strongest gain by commercial category was registered by hotels, up 28 percent; followed by warehouses, up 27 percent; office buildings, up 17 percent; and stores, up 1 per- cent. The 2013 amount for residential building was $205.5 billion, up 24 percent, and close to the 31 percent gain reported for 2012. Single family housing in dollar terms climbed 26 percent, similar to the prior year's 29 percent hike. The regional pattern for single family housing in 2013 showed increases for all five major regions, as follows – the South Atlan- tic, up 33 percent; the Midwest, up 27 percent; the West and Northeast, each up 26 percent; and the South Central, up 18 per- cent. Multifamily housing in 2013 advanced 16 percent, showing additional growth on top of the increases in 2010 (up 23 percent), 2011 (up 33 percent), and 2012 (up 37 percent). For the full year 2013, nonbuilding construction dropped 12 percent to $142.7 billion. After achieving a record high in current dollar terms in 2012, new electric utility starts plunged 57 per- cent in 2013. In contrast, the public works portion of nonbuilding construction increased 9 percent in 2013, a resilient performance given concerns that tight government budgets would dampen activity. Of the public works project types, bridge construction showed the largest percentage gain, climbing 55 percent. Housing Markets Sales of newly built, single-family homes fell 7 percent to a seasonally adjusted annual rate of 414,000 units in December, according to newly released figures from the U.S. Department of Housing and Urban Development and the U.S. Census Bureau. Despite the monthly drop, home sales in 2013 were up 16.4 per- cent over the previous year. "December's decline in new-home sales follows elevated lev- els in the previous two months and means the fourth quarter was still much stronger than the third," said Rick Judson, chairman of the National Association of Home Builders (NAHB) and a home builder from Charlotte, N.C. "While we expect sales to gain strength in 2014, builders still face considerable constraints, including tight credit conditions for home buy- ers, and a limited supply of labor and buildable lots." "Consumers are getting used to more realistic mortgage rates, which still remain favorable on a historical basis," said NAHB Chief Economist David Crowe. "As household forma- tions and pent-up demand continue to emerge, we anticipate that 2014 will be a strong year for housing." Regionally, new-home sales activ- ity fell 36.4 percent in the weath- er-battered Northeast, 7.3 percent in the South and 8.8 percent in the West. The Midwest posted a gain of 17.6 percent. The inventory of new homes fell to 171,000 units in February, which is a five-month supply at the current sales pace. Although this is an increase over the previous month, it is due to the slower sales pace in December. VIP Show Guide March 2014 • 25 U854.indd 25 2/14/14 12:10 PM

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