Page 184 - Martin Marietta - 2023 Proxy Statement

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (Continued)
 the ability of the Company to face challenges, including shipment declines resulting from economic events beyond the
Company's control;
 a widespread decline in aggregates pricing, including a decline in aggregates shipment volume negatively affecting
aggregates price;
 the history of both cement and ready mixed concrete being subject to significant changes in supply, demand and price
fluctuations;
 the termination, capping and/or reduction or suspension of the federal and/or state gasoline tax(es) or other revenue
related to public construction;
 the level and timing of federal, state or local transportation or infrastructure or public projects funding, most
particularly in Texas, Colorado, North Carolina, Minnesota, California, Georgia, Arizona, Iowa, Florida and Indiana;
 the United States Congress’ inability to reach agreement among themselves or with the Administration on policy issues
that impact the federal budget;
 the ability of states and/or other entities to finance approved projects either with tax revenues or alternative financing
structures;
 levels of construction spending in the markets the Company serves;
 a reduction in defense spending and the subsequent impact on construction activity on or near military bases;
 a decline in energy‐related construction activity resulting from a sustained period of low global oil prices or changes
in oil production patterns or capital spending in response to this decline, particularly in Texas and West Virginia;
 increasing residential mortgage rates and other factors that could result in a slowdown in residential construction;
 unfavorable weather conditions, particularly Atlantic Ocean, Pacific Ocean and Gulf of Mexico storm and hurricane
activity, the late start to spring or the early onset of winter and the impact of a drought or excessive rainfall in the
markets served by the Company, any of which can significantly affect production schedules, volumes, product and/or
geographic mix and profitability;
 the volatility of fuel costs and energy, particularly diesel fuel, electricity, natural gas and the impact on the cost, or the
availability generally, of other consumables, namely steel, explosives, tires and conveyor belts, and with respect to the
Company’s Magnesia Specialties business, natural gas;
 continued increases in the cost of other repair and supply parts;
 construction labor shortages and/or supply chain challenges;
 unexpected equipment failures, unscheduled maintenance, industrial accident or other prolonged and/or significant
disruption to production facilities;
 the resiliency and potential declines of the Company's various construction end‐use markets;
 the potential negative impacts of a global health crisis such as COVID‐19 and its variants;
 increasing governmental regulation, including environmental laws and climate change regulations;
 transportation availability or a sustained reduction in capital investment by the railroads, notably the availability of
railcars, locomotive power and the condition of rail infrastructure to move trains to supply the Company’s Texas,
Colorado, Florida, Carolinas and the GulfCoast markets, including the movement of essential dolomitic lime for
magnesia chemicals to the Company’s plant in Manistee, Michigan and its customers;
 increased transportation costs, including increases from higher or fluctuating passed‐through energy costs or fuel
surcharges, and other costs to comply with tightening regulations, as well as higher volumes of rail and water
shipments;
 availability of trucks and licensed drivers for transport of the Company’s materials;
 availability and cost of construction equipment in the United States;
 weakening in the steel industry markets served by the Company’s dolomitic lime products;
 trade disputes with one or more nations impacting the U.S. economy, including the impact of tariffs on the steel
industry;
 unplanned changes in costs or realignment of customers that introduce volatility to earnings, including that of the
Magnesia Specialties business that is running at capacity;

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