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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VIP Show Guide March 2014 • 27 AGGREGATES & CONSTRUCTION MARKET REPORT State of Union In President Obama's State of the Union address on January 28, he linked tax reform and infrastructure investment, a move wel- comed by national stakeholders. "Both Democrats and Republicans have argued that our tax code is riddled with wasteful, complicated loopholes that punish businesses investing here, and reward companies that keep profits abroad," Obama said. "Let's flip that equation. Let's work togeth- er to close those loopholes, end those incentives to ship jobs over- seas, and lower tax rates for businesses that create jobs here at home. Moreover, we can take the money we save with this transi- tion to tax reform to create jobs rebuilding our roads, upgrading our ports, unclogging our commutes – because in today's global economy, first-class jobs gravitate to first-class infrastructure. "We'll need Congress to protect more than three million jobs by finishing transportation and waterways bills this summer," he continued. "But I will act on my own to slash bureaucracy and streamline the permitting process for key projects, so we can get more construction workers on the job as fast as possible." National Stone, Sand and Gravel Association President and CEO Michael Johnson welcomed the call for infrastructure investment. "The president once again mentioned the need to rebuild America's surface transportation infrastructure in his State of the Union address," he said. "I hope the sixth time is the charm because it will take presidential leadership to find a long-term solution to the pending insolvency of the Highway Trust Fund. "The president's call for corporate tax reform is a welcome devel- opment for members of the aggregates industry," Johnson con- tinued. "By both lowering the rates and eliminating complexities within the code, everyone from mom and pop companies running a single sand and gravel operation all the way up to vertically inte- grated corporations employing thousands of men and women across America will see the benefits. Decreased tax compliance costs cou- pled with increased after tax earnings translate into stronger com- panies capable of providing good paying jobs for American workers. "Furthermore, the president's proposal to invest at least a por- tion of the revenue generated through corporate tax reform in the nation's roads, bridges and ports is a step in the right direction and one that Republicans and Democrats can and should support, he concluded. "We commend the president for also pledging to further reduce government bureaucracy and streamline the proj- ect delivery process to build upon the progress being made under MAP-21. But applause lines do not build roads and, as country music artist Toby Keith sang, we need 'a little less talk and a lot more action.' The time is now to rebuild America's infrastructure." American Road & Transportation Builders Association Presi- dent and CEO Pete Ruane agreed with Johnson. "Transportation investment has been emerging in recent days as one of the areas where Republicans and Democrats on Capitol Hill can find common ground," he said. "It is commendable that President Obama once again used his State of the Union address to talk about the need to repair the nation's transportation infra- structure. Now we would like to see specific plans about how Con- gress and President plan to tackle the underlying problem: the need for new, long-term revenues. "Time is of the essence," he warned. "The federal Highway Trust Fund ¬– the source of 52 percent of all state highway and bridge capital investments – will be unable to support any new improvements in fiscal year 2015, unless the President and Con- gress act this fall. U.S. Secretary of Transportation Anthony Foxx put it best January 15 when he said 'the Highway Trust Fund will start bouncing checks as soon as August.' Future U.S. economic competitiveness, mobility and hundreds of thousands of Ameri- can jobs are at stake. Our message to Congress and the Adminis- tration is simple: Fix the Highway Trust Fund as soon as possible." Patrick Jones, executive director and CEO of the International Bridge, Tunnel and Turnpike Association concurred with his fel- low association heads. "We applaud President Obama for shining a bright light on the need 'to create jobs rebuilding our roads, upgrading our ports, unclogging our commutes – because in today's global economy, first-class jobs gravitate to first-class infrastructure," Jones said. "We'll need Congress to protect more than three million jobs by finishing transportation and waterways bills this summer. We also salute the Congress for making plans to move forward with timely reauthorization of MAP-21." DEMAND FOR MULTIFAMILY HOUSING TO RISE Strong demand for apartments will increase over the next several years, said panelists during a press conference at the National Associ- ation of Home Builders (NAHB) International BuildersÕ Show (IBS) in Las Vegas. And while multifamily construction continues to be strong, NAHB does expect the speed to decrease as sustainable levels are reached in 2015 or 2016. ÒThe multifamily market has rebounded significantly from its trough in 2009 at 82,000 multifamily housing starts to 340,000 in 2013,Ó said NAHB Chief Economist David Crowe. ÒNAHB is forecasting 363,000 mul- tifamily housing starts in 2015, which is above the previous longer term average of 340,000 as more young adults prefer renting.Ó The strong performance in multifamily comes from three sourc- es, explained Crowe. ÒFirst, during the collapse, production of multi- family housing had significantly decreased, so part of the resurgence in 2011 was just catching up with a more normal flow. Second, the strong demand for apartments is being fed by a rising demographic of echo boomers that will continue to grow in size as we absorb people born after 1980. Third, young adults who might have otherwise chosen homeownership, and some older adults as well, are hampered by a variety of issues, such as unusually tight underwriting standards for mortgages, lower credit scores because of the slow employment mar- ket and lower entry salaries. As a result, the share of households that rent rather than own has increased steadily since 2004 and will likely continue until jobs are more secure, mortgages more accessible and careers more stable.Ó Many markets have regained their footing and are producing at least as many multifamily units as they did during the relatively stable period between 1996 and 2006. ÒThe multifamily market has come a long way since the collapse,Ó said panelist Guy K. Hays, president of Legacy Partners Residential Inc. in Foster City, Calif. ÒOverall, supply and demand are in balance, and in most markets there is a need for the continued production of new units.Ó While both panelists are optimistic about the future of the multi- family housing market, there are still challenges that face the industry such as the availability of labor and rising cost of some building mate- rials. But demand for apartments is strong enough for developers to proceed in most markets, the panelists noted. U854.indd 27 2/14/14 12:10 PM

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