Page 181 - Martin Marietta - 2024 Proxy Statement

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (Continued)
 the United States Congress’ inability to reach agreement among themselves orwith the Executive Branch on policy issues
that impact the federal budget;
 the ability of states and/or other entities to finance approved projects eitherwith 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, particularly in Texas and West Virginia;
 sustained high residential mortgage interest rates and other factors that have resulted in a slowdown in residential
construction in some geographies;
 unfavorable weather conditions, particularly Atlantic Ocean, Pacific Ocean and Gulf of Mexico storm and hurricane
activity, wildfires, the late start to spring or the early onset ofwinter 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 offuel 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 new waves of outbreak of diseases, epidemic or pandemic, or similar public health
threat, orfear of such event and its related economic or societal response, including any impact on the Company's
suppliers, customers, or other business partners as well as on its employees;
 the performance of the United States economy;
 increasing governmental regulation, including environmental laws and climate change regulations at the federal and state
levels;
 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 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 orfluctuating passed‐through energy costs orfuel
surcharges, and other costs to comply with tightening regulations, as well as highervolumes 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;
 potential impact on costs, supply chain, oil and gas prices, or other matters relating to geopolitical conflicts, including the
war between Russia and Ukraine, the war in Israel and related conflict in the Middle East and the conflict between China
and Taiwan;
 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;
 properfunctioning of information technology and automated operating systems to manage or support operations;
 inflation and its effect on both production and interest costs;
 the concentration of customers in construction markets and the increased risk of potential losses on customer receivables;

2023 Annual Report ♦ Page 79