Martin Marietta Materials Inc. noted in its third-quarter report that a number of economic trends are providing signs of encouragement for the industry. For example, Martin Marietta notes that nonresidential construction is expected to increase in both the heavy industrial and commercial sectors. According to Martin Marietta, the commercial building sector is expected to benefit from improved market fundamentals, such as higher occupancies and rents, strengthened property values and increased real estate lending.
Also, shale development and both public and private construction activities remain strong in Martin Marietta’s primary markets, the company says. In addition, Martin Marietta notes that historically low levels of construction activity over the previous several years, as well as low mortgage rates, significant lot absorption, higher multi-family rental rates and rising housing prices, should continue to drive growth in the residential sector.
“Job growth continues as a significant catalyst for construction activity, and Texas leads the nation in employment gains,” says Ward Nye, chairman, president and CEO of Martin Marietta. “Texas’ strong Department of Transportation budget is supporting investment in multiyear construction projects, including the expansion of Interstate Highway 35E in Dallas and the TIFIA-funded Grand Parkway project in Houston. These and other numerous state-level major projects have provided for continued stability in public-sector construction activity.”
