TRG | The Bottom Line – 5/5

This past Thursday, May 4th, marked the 14th anniversary of the launch of Thompson Research Group (TRG). We “celebrated” this year much as we did the first week of our founding – with a spate of earnings. TRG’s very first earnings call way back in 2009 was Vulcan Materials (VMC) and Martin Marietta (MLM). Much has changed since the bottom of the Great Recession for the aggregate industry, include steady consolidation. This week, the three domestic heavy materials producers – MLM, VMC, SUM – all posted back to back earnings calls on Thursday. The over-riding theme for the quarter was that of pricing. Despite a soft patch in the resi end market and clouds forming in light commercial, the bigger picture for the construction industry in the U.S. remains quite positive for several years. Visibility of volumes supports pricing. Bigger picture factors supporting U.S. construction growth include: 1) reshoring/near shoring; 2) population shift to the southeast/southwest; 3) increased spend towards environmental matters; and 4) government support of key initiatives impacting construction, including IIJA, the CHIPS Act, and the Inflation Reduction Act. As we did in 2009, TRG to this day still provides original, fundamental insights and analysis in the construction and industrial sectors. Since our founding, we have developed an extensive network of relationships with both public and private companies. In addition, we have developed relationships across both state and federal governments and key industry policy makers to help better inform us on our industries. The basic value drivers of TRG’s research outlined in our launch letter in May 2009 still resonate today.  Thank you for your support throughout the years, and we look forward to many more.