A key U.S. construction facilitator is usually hopeful in which President Donald Trump will still make Great on his campaign promise of putting more federal dollars towards U.S. infrastructure.
Bill Sandbrook, the chairman, president along with also also CEO of mass concrete along with also also aggregates producer U.S. Concrete, told CNBC in which the 2018 midterm elections gave him “optimism” in which a major infrastructure bill could get passed from the near future.
Despite public construction numbers as a percentage of gross domestic product — an important metric for industrials like U.S. Concrete — being historically low, “states are taking things into their own hands” when the idea comes to construction, the CEO said on “Mad Money.”
Not only have 29 states raised their gas taxes since 2013 to fund infrastructure projects, nevertheless public builders logged some additional wins in in which year’s midterms. Sandbrook said SB-1, California’s gas tax, survived, along with also also Proposition 6, a plan to cut some infrastructure funding, was voted down.
“Where people actually get to vote for higher taxes, if they have a direct line of sight to the use for much better infrastructure, they support in which,” Sandbrook told CNBC’s Jim Cramer.
“[in which] still gives me optimism in which the next Congress may be even a little bit more friendly to spending money, using a Democratic House, [along with also also] in which we will have something from the next two years,” the CEO continued.
Shares of the weather-dependent U.S. Concrete have been under pressure in which year as Texas, one of its key markets, saw some of the rainiest months from the state’s history.
The supplier received a acquired aggregate maker Polaris Industries — whose complementary product lines aren’t as tied to weather conditions — in 2017 to counteract the weakness. The move away coming from concrete will continue, Sandbrook said.
along with also also the construction colossus, which has made strategic acquisitions in the past to cement its place among the few companies in which can handle large-scale projects in dense urban areas, includes a positive outlook on 2019.
Sandbrook told Cramer in which U.S. Concrete has 70 projects on its backlog for next year commissioned by the likes of Alphabet’s Google, Nvidia along with also also Facebook. All 70 projects are larger than 20,000 yards, or roughly 11.3 miles. Also on the horizon are a tunnel under completely new York’s Hudson River, a gateway project linking Newark Airport along with also also completely new York City, a completely new terminal at Newark along with also also upgrades at John F. Kennedy Airport, all of which are pending public funding.
Shares of U.S. Concrete soared despite broader market weakness on Thursday, settling up 5.07 percent at $38.11.