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 Transportation Construction The American Road & Transportation Builders Association (ART- BA) is forecasting that beyond a modest increase in construction costs nationwide, the overall U.S. transportation infrastructure construction market will grow 5 percent from $129 billion this year to $135.8 billion in 2014. ARTBA Chief Economist Dr. Alison Premo Black said the market would be led by expected double-digit growth in airport runway and terminal work, a 6 percent increase in bridge and tunnel con- struction, and 5 percent, or better, growth in total investment in waterways and ports, and heavy and light rail. Uncertainty about the level of federal support for state high- way programs after next September, however, will continue to depress the road pavement market next year. Black forecasts the pavement market will grow to $54.4 billion in 2014, up 2.6 percent nationally. This includes $42.7 billion in public and private investment in highways, roads and streets, and $11.6 billion in largely private investments in parking lots, drive- ways and related structures. The market, however, will be uneven nationwide, she says. ARTBA forecasts paving work to be up in 19 states, down in 20, and largely flat in the remaining 11. ÒOver the past 10 years, on average nationally, federal funding has provided 52 percent of the money invested by state trans- portation departments in road and bridge capital improvement projects,Ó Black said, noting, ÒThe federal share ranges from 35 percent in New Jersey to over 70 percent in 11 states.Ó ÒAbsent congressional action to improve the revenue stream into the federal Highway Trust Fund before next October, federal support for state programs faces a potential $40 billion cut in fiscal year 2015,Ó she said. ÒThat uncertainty is already putting a damper on state project lettings. Congress needs to act.Ó term outlook for pavements could be much more posi- tive,Ó said Black. ÒBipartisan political support for significantly increased transportation investment has been seen in a number of bell-weather states this year, including Pennsylvania, Virginia, Ohio, Maryland and Massachusetts. Wyoming and Vermont passed gas tax increases for expanded investment. Eighty-five percent of the 2014 transportation investment ballot initiatives passed. And the public-private investment market is picking-up with the expansion of the federal loan guarantee program.Ó The ARTBA forecast is based on a proprietary econometric model and analysis of federal, state and local data and market intelligence. CONSTRUCTION MARKETS FMI, a leading pro- v ide r of ma na ge - ment consulting and investment banking to the engineering a nd c o ns t r uc t io n industry, released its "2014 U.S. Mar- kets Construction O v e r v i e w. " W i t h construction put in place at the end of 2013 expected to be at $909.6 billion, researchers at FMI predict CPIP growth rates to be slightly ahead of the GDP in 2014. Other predictions include: • Residential CPIP is anticipated to grow from $338.2 billion in 2013 to $379.6 billion in 2014. • Health care CPIP is expected to grow 6 percent in 2014 to $44 billion. • Transportation construction should finish 2013 with an 8 per- cent increase; 2014 predictions show a decrease to 7 percent growth. • Manufacturing construction is on the upturn, expected to grow 4 percent in 2014, after its 2 percent drop in 2013. • Sewage and waste CPIP should reach $21.3 billion in 2014. • With moderate growth predicted marketwide, there are key trends to watch that will likely affect various sectors and regions in the U.S. Presenting both threats and opportunities are: • The shift from shale-gas to shale-oil production has led to pro- jections that the U.S. will produce more oil than it imports by late 2014. • The federal government's fiscal difficulties continue to create business uncertainty. Many are worried about the federal debt and the government's solution to address the problem. • Implementation of the Affordable Health Act is causing con- cern, as repercussions are anticipated. • With baby boomers continuing to retire, succession planning and a search for talent remains one of the industry's primary challenges. • Modularization and prefabrication is expected to play an increasingly vital role in improving the productivity of the entire construction value chain. • As a result of the expansion of the Panama Canal, U.S. coastal infrastructure opportunities will create significant corridors of construction activity starting as early as 2014. 26 • March 2014 VIP Show Guide U854.indd 26 2/14/14 12:10 PM

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