Page 164 - Martin Marietta - 2025 Proxy Statement

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (Continued)
more aggregates intensivethanconstructionofmulti-family units. Therefore,the levelof new subdivision starts, as wellasnew
single-family housing permits, isa strong leading indicatorofresidential volumes. Accordingtothe United States Census
Bureau, forthe year ended December31, 2024, seasonally-adjusted national single-family housing starts decreased3% to
approximately 1.1 millionunits compared with 2023 andseasonally-adjustednationalsingle-family housingpermits decreased
3% versus2023.Housing demand farexceeds supplyinthe Company’skey markets; however, ahousing recovery is not
expecteduntil mortgage ratesdeclineand/oraffordability headwinds recede.

ChemRock/Rail
The remaining 5% of the Company’s 2024 aggregates shipments was to the ChemRock/Rail market, which includesballast and
agriculturallimestone. Ballast is an aggregates productusedtostabilize railroadtrack beds.Agriculturallime, ahigh-calcium
carbonate material, isusedasa supplement in animal feed, a soil acidity neutralizer andagriculturalgrowthenhancer.
Additionally, ChemRock/Rail includes rip rap(used as astabilizing materialtocontrol erosioncausedby water runoff at
embankments,ocean beaches, inlets, riversand streams) andhigh-calciumlimestone (usedas filler inglass, plastic, paint,
rubber, adhesives, grease and paper).Chemical-grade,high-calciumlimestone is used as adesulfurization material in utility
plants.

Pricing Trends
Materialspricing forconstructionprojects isgenerally basedonterms committing to theavailability of specified products of a
statedquantity atanagreed-uponprice during adefinitive period. Because infrastructure projectsoften span multiple years,
announcedprice changescan have alag time before taking effect whilethe Companysells products underexistingprice
agreements.Pricing escalators included in multi-year infrastructure contractsserve to somewhat mitigate this effect.However,
duringperiods of heightened or rapid increases in production costs, multi-year infrastructure contract pricing may provideonly
nominal pricinggrowth. Additionally,the Companymay implement multiple price increasesthroughoutthe year,ona market-
by-market basis, where appropriate. Pricing isdeterminedlocally and isaffectedbysupplyand demand characteristicsof the
local market. For further informationon pricing, see thediscussion in the Financial Overview section.

Page56 ♦ 2024 Annual Report