Page 55 - 2019 Annual Report

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (continued)
In order to assess population growth and density, the Company focuses on the megaregions of the United States.
Megaregions are large networks of metropolitan population centers covering thousands of square miles. According to
America 2050, a planning and policy program of the Regional Plan Association, a majority of the nation’s population and
economic growth through 2050 will occur in 11 megaregions. The Company has a presence in most of the megaregions. As
evidence of the successful execution of SOAR, the Company’s leading positions in the Texas Triangle and Colorado’s Front
Range megaregions and its enhanced position in the Piedmont Atlantic, primarily in the Atlanta area, are the results of
acquisitions since 2011. Additionally, the 2018 acquisition of Bluegrass Materials Company (Bluegrass) provided the Company
with a new growth platform within the southern portion of the Northeast megaregion. The Company has a legacy presence in
the southeastern portion of the Great Lakes megaregion, encompassing operations in Indiana and Ohio. The megaregions
and the Company’s key states are more fully discussed in the Building Materials Business’ Key Considerations section.

In considering business and employment diversity, the Company focuses its geographic footprint along significant
transportation corridors, particularly where land is readily available for the construction of fulfillment and/or data centers.
The retail sector values transportation corridors, as logistics and distribution are critical considerations for construction
supporting that industry. In addition, technology companies view these areas as attractive locations for data centers.

Additionally, the Company considers a state’s financial position in determining the opportunities and attractiveness of areas
for expansion or development. In this assessment, a state’s financial health rating, issued by S&P Global Ratings and where
AAA is the highest score, is reviewed. The Company’s top ten revenue-generating states have been assigned a financial health
rating of AA or AAA. The Company also reviews the state’s ingenuity to securing additional infrastructure sourcing.

Celebrating 25 Years as a Public Company Annual Report ♦ Page 53