ACCELERATING PUBLIC SECTOR DEMAND

Vulcan’s strategic position in high-growth markets in the United States is without parallel in the aggregates industry. We currently serve markets that are projected to see 80 percent of the country’s population growth from 2020 to 2030.5 Nine of the states where we operate, which accounted for almost 80 percent of our revenue, have passed legislation over the last three years that dramatically increased their transportation infrastructure funding. Along with successful local ballot measures, these actions have added more than $20 billion annually in transportation funding in these nine states alone — almost half as much as the annual appropriation for highway funding under the federal Fixing America’s Surface Transportation (FAST) Act. We believe we are at the beginning of a new era in major transportation funding for much needed and long overdue projects. Many of our most important markets will be prime beneficiaries for years to come.

U.S. Aggregates Demand⁶

Overall, we see significant room for growth. Demand for aggregates is still below historical averages — and well below past peaks in demand — even as population and economic activity continue to increase in our key markets. We believe that we are in the middle stages of the market upturn that began more than five years ago.

Public Highway Starts in Vulcan-Served Markets

On the Cusp of a New Surge in Growth

+14%

in 2017

+12%

in 2018

~60% increase

in state transportation infrastructure spending over 2015 levels in California, Florida, Georgia, Maryland, North Carolina, South Carolina, Tennessee, Texas, and Virginia. These nine Vulcan states contribute almost 80% of the Company’s revenue.

5 Source: Moody’s Analytics, October 2018.
6 Source: Dodge Data & Analytics and Company estimates.