Page 62 - 2019 Annual Report
P. 62

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (continued)
           Geography is critically important as products are sourced and sold locally.
           The Company’s geographic  footprint is  primarily in  attractive markets with strong, underlying  growth characteristics,
           including population growth and/or population density and business and economic diversity, both of which generate demand
           for construction and the Company’s Building Materials products. The Company has a presence in most of the megaregions of
           the United States, notably: Texas Triangle, Gulf Coast, Piedmont Atlantic, Front Range and Florida, each of which is discussed
           below. Additionally, Iowa is discussed below as a top five revenue-generating state and, while not part of a megaregion, is an
           attractive market that has diversified its economy over the past several years. Further, South Carolina is a top ten revenue-
           generating state and is discussed as part of the Piedmont Atlantic megaregion.











































           Texas Triangle and Gulf Coast
           The Texas Triangle is primarily defined by the anchoring metropolises of Dallas/Fort Worth, San Antonio and Houston. As of
           2018, the Texas Triangle’s population was estimated at more than 17 million residents, and is expected to exceed 21.5 million
           by 2030, representing approximately 62% of the population in Texas at that time. Growth in the Texas Triangle is not limited
           to residents as 53 Fortune 500 companies have headquarters in this megaregion. The Texas Triangle represents a diverse
           economy, including the finance, technology, transportation and goods and services sectors.
           Uniquely, Houston, which has represented over 25% of Texas’ gross domestic product (GDP) for the past eighteen years, is
           considered part of both the Gulf Coast and the Texas Triangle megaregions. In addition to Houston, cities in the Gulf Coast
           megaregion include New Orleans and Baton Rouge, Louisiana. The Gulf Coast megaregion’s population is expected to exceed
           16 million in 2025 and 23 million in 2050. The economy is driven by the energy, chemical and transportation sectors.

           The Texas market remains one of the strongest in the United States, and according to the Bureau of Economic Analysis, as of
           2018, the state’s GDP comprised 9% of the nation’s $18.6 trillion GDP. Forbes recognized Dallas, Fort Worth and Houston as
           the second, 20  and 34  best metros for business and careers, respectively. Texas continues to lead the nation in population
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           growth, and its population is estimated to increase 35% from 2020 to 2040. Houston, San Antonio and Dallas are ranked
           fourth, seventh and ninth, respectively, as the most populous cities in the United States and have experienced employment
           growth of  26%, 29% and 33%, respectively, over the ten-year  period ended November 2019.  Supported by  population
           growth, Texas leads the country in total housing permits for the twelve months ended December 31, 2019.



           Annual Report  ♦  Page 60                                            Celebrating 25 Years as a Public Company
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