Page 64 - 2019 Annual Report

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (continued)
Front Range
Through strategic acquisitions since 2011, the Company has built a leading position to serve the Front Range. Extending from
the southern portion of Wyoming near Cheyenne, following Interstate 25 through Colorado into New Mexico, incorporating
Santa Fe and Albuquerque, the Front Range megaregion is one of the nation’s fastest-growing megaregions. Colorado ranked
eighth in population growth for the eight-year period ended 2018. The Front Range represents 85% of Colorado’s population
and is estimated to exceed 10 million residents by 2050, nearly double the 2010 population.
The Colorado economy includes a diverse economic base, leading to strong employment and population growth. Denver was
ranked fourth by Forbes for best cities for business and careers. Senate Bill 17-267, enacted in 2017, includes a component
that focuses on new lease-purchase agreements that allocates $1.9 billion of its proceeds to Colorado DOT (CDOT) and the
remainder of its proceeds to transportation and capital construction projects over a four-year period. CDOT fiscal year 2019-
2020 budget is $3.6 billion.

Florida
Spanning nearly the entire state, the Florida megaregion is rapidly expanding. Florida is the country’s third-most populous
state according to the Census Bureau. Population growth in Florida is estimated to exceed seven million, or 32%, from 2020
to 2040. Further, the state’s GDP represents 5% of the nation’s GDP. Florida ranks second in total housing permits for the
twelve months ended December 31, 2019.
Florida has a $10.8 billion DOT budget for fiscal year 2019-2020 and a proposed budget of $9.9 billion for fiscal year 2020-
2021. In fact, the state has a $46.6 billion five-year construction program that extends to 2021. In the 2018 elections, Florida
voters approved six ballot initiatives totaling $24.9 billion for infrastructure investment.
Iowa
Iowa has been a top-five Martin Marietta revenue-generating state for decades and has historically experienced a stable and
steady economy. Iowa is the nation’s largest corn- and pork-producing state and provides approximately 9% of America’s
food supply. The Company’s agricultural lime volumes are dependent on, among other things, weather, demand for
agricultural commodities, including corn and soybeans, commodity prices, farm and land values. The Iowa economy has
become consistently more diverse over the past several years, in part due to both its low cost and ease of doing business. The
state is attractive for starting and expanding businesses due to enticing tax incentives. Facebook announced plans to begin
work on a $400 million data center in the summer of 2020 which is projected to be completed in 2022. Additionally, Apple
plans to build a $1.3 billion data center near Des Moines. Further, a $250 million warehouse and data center project is
expected to add more than 1,000 jobs to the Des Moines metro. Wind-based energy production continues to be a focus for
Iowa as the state remains focused on its efforts to become fossil fuel free.

Growth markets with limited supply of indigenous stone must be served via a long-haul distribution network.

The U.S. Department of the Interior’s
geological map of the United States
depicts the possible sources of
indigenous surface rock and illustrates
its limited supply in certain areas of
the United States, including the coastal
areas from Virginia to Texas. Further,
certain interior United States markets
may experience limited availability of
locally sourced aggregates resulting
from increasingly restrictive zoning,
permitting and/or environmental laws
and regulations. The Company’s long-
haul distribution network is used to
supplement, or in many cases wholly
supply, the local crushed stone needs
in these areas.

Annual Report ♦ Page 62 Celebrating 25 Years as a Public Company