Oct. 29, 2019 – Martin Marietta, which posted record revenue for the third quarter, said that its aggregates business is up more than 12%. Third-quarter aggregates shipments by end use are as follows versus the prior-year quarter:
Aggregates shipments to the infrastructure market increased 7%. As expected, transportation-related projects accelerated during the quarter, supported by funding provided by the Fixing America’s Surface Transportation Act (FAST Act) and numerous state and local transportation initiatives and continued reconstruction efforts following flooding in the Midwest. For the quarter, the infrastructure market represented 38% of aggregates shipments, which is below the company’s most recent 10-year average of 46%.
Aggregates shipments to the nonresidential market increased 19%, driven by gains in commercial and heavy industrial construction activity. The company continued to benefit from distribution center, warehouse, data center and wind energy projects in key geographies, including Texas, the Carolinas, Iowa and Maryland, as well as the early phases of several large energy-sector projects along the Gulf Coast. The nonresidential market represented 34% of third-quarter aggregates shipments.
Aggregates shipments to the residential market increased 16%, driven by continued homebuilding activity in states such as Texas, Colorado, the Carolinas, Georgia and Florida. The residential construction outlook across the company’s geographic footprint remains positive for both single- and multi-family housing, driven by favorable demographics, job growth, land availability, low-interest rates and efficient permitting. On a national level, housing starts remain below the 50-year annual average of 1.5 million despite notable population gains. The residential market accounted for 22% of third-quarter aggregates shipments.