TRG | The Bottom Line – 6/4

TRG continues to witness the influx of population to our stomping ground, Nashville, and a big driver of this growth is from California. With its historic music-industry roots, inevitably a greater portion has come from southern CA. With that in mind, TRG made its way to the L.A. market this past week to have a “boots on the ground” view of the market, meeting with both Vulcan Materials (VMC) and private industry contacts. Overall, the feedback has been that heavy material producers are “firing on all cylinders” and that 2021 would be a better year than 2019 if they were able to meet all the demand. Supply chain constraints and labor shortages are really the only governors for growth and the ability to exceed 2019 volumes. SB1 dollars are out in full force, driving solid infrastructure/roads volumes. Residential demand to the east of the city continues to outstrip supply. The ever-present areal cranes in Nashville were not as prevalent in L.A., demand more driven by heavy industrial (think distribution centers).