The broadcast is now starting. All attendees are in listen-only mode. Good afternoon. Welcome to PCI's webinar series. Today's presentation is Construction Forecast and PCI Market Survey Update for 2024. My name is Nicole Clough, Marketing Manager at PCI, and I will be your moderator for this session. Before I turn the controls over to your presenter today, I have a few introductory items to note. The handout for this webinar can be found in the handout section of your webinar pane. If you cannot download the handout, please email PCIMarketing at marketing at pci.org. Please note that all attending lines are muted. The GoToWebinar toolbox has an area for you to raise your hand. If you raise your hand, you will receive a private chat message from me. If you have a question, please type it into the questions pane where I will be keeping track of them and will read the questions to the presenter during the Q&A period. Also, a pop-up survey will appear after the webinar ends. Today's presentation will be recorded and uploaded to the PCI eLearning Center. Questions related to specific products or publications will be addressed at the end of the presentation. PCI is a registered provider of AIA CES, but today's presentation does not contain content that has been endorsed by AIA. Today's presentation is non-CEU. Our presenter for today is Brian Miller, Global Marketing Director at CRISO GCP Applied Technologies. I will now hand the controls over so we can begin our presentation. Okay, Nicole, tell me if you can see the screen and hear me okay. Yes. Excellent, excellent. Well, thank you very much and good afternoon everyone. I hope you are doing well. Thank you very much for joining us this afternoon. Today we'll have some fun. We're going to go through some much anticipated data. I know many of you have just been waiting so anxiously to receive this, I'm sure. We'll take a look first at the national perspective. The latest forecast information on what we see happening in construction right now across the country. We do now have the 2022 precast sales, so we'll look at that from a national perspective first, and then we'll dive in at a certain level to a regional perspective, meaning PCI regions, and do the same thing. Also understand what kind of construction activity is being forecasted on a more localized level and how the sales and market share look there. It won't be as detailed as what we can do when we meet in the different regional meetings, but at least I'll give you a high-level sense of what's going on and what kind of direction we're headed and so forth. As always, we get started a couple notes. A couple things really about using the data. Of course, it's not my data. I just get to play economist every now and then, so it's just data that we're sharing with the industry. It comes from multiple sources, primary sources being DODGE construction data for the forecasting, and of course PCI for precast sales and related data and so forth like that. I always want to point out the national forecasts are based on construction starts, so if you're not familiar, what we're saying is the entire dollar value of an estimated project is in the year that they believe the project is going to start, even though the cash flow would carry on for several years, of course, or whatever the duration of the project might be. Now, when you're looking through the data, and you'll have a copy of this information, of course, it's very important to look at both trends and magnitude. What we really mean by that is, here's an example. You'll see a ton of data, but you'll see it usually in terms of like this one would be total construction dollars over time, so we're going to look at the next several years and maybe even historically so we can match it up with precast sales. You also see each one of these will have a compound annual growth rate. Right now, we're looking at it from this year forward for four years, and it's just a simple way of saying, hey, about an average, I guess, of 7.3% growth each year would get me to the amount of progress in 2027, so it doesn't mean that every year is exactly 7% growth. Some might be smaller. Some might even be negative, but the net impact would be the same as about 7% growth a year, so obviously, the higher this number, the more growth we're seeing in a particular state or segment or area of the market that we're looking at, so that's an important aspect of it. Then, of course, the other side is just the magnitude, you know, looking at the market and saying, okay, how much construction is happening in this market? We'll talk about the adjustments that we need to make for precast and make sure that even though the market might be growing really fast, it might not be that big of a magnitude. Maybe there's only a few projects for us, for example, so you try to look at both aspects of it when you're looking at your forecasting and your analysis and so forth. One of the things that by now hopefully everybody's doing is calculating your own market share and understanding your position in the market, so all the tools are here with the data from PCI, these reports and so forth. You obviously know your sales at your different companies, so you ought to be able to then calculate this at least on an annual basis, and so to do that, the first step is really making a small adjustment, I would say, from the what we call total construction dollar spend, so that's the total value of a project, and we call it the SRM or the relative market, the strategic relative market. Now, the good news is PCI has calculated this adjustment, at least on a national level, and they provide that to you, so it's in all the reports and stuff, but just by an example, these are all hypothetical, of course. Yeah, you say, look, if you had an office building got built, say it cost 50 million dollars, the entire office building and precast enclosure system was used, and that was about six and a half million dollars, let's say, in hypothetical, you would just divide the value of the enclosure by the value of the building, and you'd get a percentage. So, in other words, for precast on this type of an office, the product's probably worth in the neighborhood of about 13 percent of whatever the cost is for the enclosure. Now, one data point isn't enough. If you do this over a lot of data points, like hundreds, you start to get a pretty good average of what the potential is for precast concrete on a given project type, right? Whether it's an enclosure system or whether it's a structural system or both, you start to get an understanding, and that's what you want to use to calculate in your forecasts, as well as what you'd use to calculate your market share. So, in this example, if we said, hey, the total construction market's a billion dollars over the next year, you'd take 13 percent of that and say, guess what? About 130 million could be precast concrete. Could be a little less, could be a little bit more, but it's definitely not a billion dollars. So, it gives us a fundamental idea. And then, to close it out, to do your market share, all you do is take your sales in this situation here, let's say it was just 10 million dollars for a simplistic math, and then you look at it and say, well, you said the potential is 130 for this market. I would just do the math, and you'd end up saying, look, I get about 7.7 percent market share of office enclosures in this hypothetical market. So, not real hard math. We're not calculating moments and sheer and so forth. But in very important math, it's always important to understand not just the sales in our companies, but our market share and the trends we're seeing. Are we growing? Are we shrinking? And behind all of that is the why. Why are we doing those things? And do we want to do those things, or do we need to make a change? Which kind of leads me into this aspect of it, which is, hopefully, this kind of data is playing into the development of your strategies and what you plan on doing for the next couple of years, three years, whatever. If you – again, we can kind of look at this as a hypothetical example to just illustrate two different extremes. We'll compare a scenario where we're talking about parking structures, and this scenario, which is probably pretty common for many of you, you build a lot of them, build several parking structures each year. So, just assume for a minute you did calculate your market share, and you said, hey, I've got like 25 percent market share wherever this is, right, hypothetically. And if you compare it to a second scenario, you know me, I like to use schools as a simple example. Say we just completed our second project, so we've only done schools in the entire career of the company. We looked at the market share. It's obviously usually going to be pretty low when you're starting out, so say it's less than one percent. Without going any further, I think everyone would agree these are two very different scenarios. These could happen to you in the same company, right? This could be your company. You could be doing parking, and you could do schools at the exact same plant. So, this could be existing within the company, or it could be two different companies. But if this was the situation, and you said, what kind of market position would you be in? Well, you can think about this to yourself. Usually, if you have a higher market share, I would say for a point of reference, let's say greater than 20 percent, you are probably a leader in that market. Usually, there's a couple players would say, I mean, most likely you're a leader in that market. I think that's a safe bet. Typically, when you are lower than a percent or a couple percent, you're either in what we'd call a neutral or a growth type of mode or situation, right? So, a growth mode would be one where you're trying to grow the market, and maybe you've done a couple projects, and maybe you're gaining a little bit of share, and it's an active part of your strategy. A neutral position might be an example is where you did the project because it just worked. It's not really strategic. Maybe you do one every now and then, but you're not really strategically trying to grow it. So, just some simple examples. There's a lot of ways to define this in more detail, but at a high level, it's good to know which position you're in because that will affect pretty much everything else you do. So, for example, if you said in the parking scenario, do the customers know who you are? Well, hopefully, everybody would say yes, right? If you're a market leader, you have a large share, you know the customers, and they know you, and they know your value proposition, but the opposite would be true in this other scenario. If I've only built one or two, well, maybe I know one customer, but chances are all the people involved, all the stakeholders, the architects, the owners, in this case, maybe the school boards, the engineers involved, they may not know who you are. They may not understand your value proposition. So, in marketing, when you start thinking about developing, let's say, a promotion plan, a communication plan, would they be different? Yes. In one group, everybody knows everybody, and maybe they understand precast really well, so the lunch and learns may be more advanced, for example. You might be able to do more things in person. In the other case, you're raising a lot of awareness. You're still trying to even maybe understand who those customers are. So, getting this picture understood, where you are in the market, what your share is, what direction you're going, plays a lot into our strategy, what we're trying to accomplish, and so forth. So, again, in scenario one, if I said, what would your strategy be right here, chances are a lot of it would be defense. If you're a leader in a market, usually somebody else would like to take the lead from you, and so, in that case, it's kind of playing a little defensive game. You can be on the offense, but the difference here is people are looking for you, and they're probably coming after you one way or another, right? So, you need to be aware of it and deal with it. On the other side, in a growth or neutral mode, you might not be attacked. I mean, it doesn't mean people are just giving you work, but you're probably not the target of somebody else's strategy in this scenario. You know, maybe as you get a couple percent of the market share, you keep growing, you'll get on the list to be a target, but these are very different, and that's just kind of the idea. As you build your strategies, this data can be very important in helping you understand where you're at, and also, of course, what you want to go after when you think about where opportunity lies in the future. So, just some things to consider there. We'll start with the national level, like I said, kind of that high-level forecast. The data is the most current we have. It always lags behind a little bit. So, the data itself is actually based on September of 23. The projects are all construction starts, like I said earlier. So, everything's happening within the year that you see that part of information out there. This is what was assumed to be the input data that goes into the forecast. So, the real experts out there go and they take a look at all the economic factors, labor markets, credit markets, inflation, et cetera, and they make assumptions. Where will we be at at the end of the year? What direction are we going to go? What do we think is going to happen over the next few years? And based on those assumptions, the models and the work they do then gives us forecasts. So, this way, you can see what the assumptions were. Now, keep in mind, this came out, really, the analysis was done in Q3, beginning of Q4 of last year. So, the 23 numbers you're looking at are not final. You know what the final numbers are. The next round of data we get will have the actual 2023 December final numbers in there and, of course, adjusted projections going forward. So, just kind of a comparison, because we often get asked, well, how much are things changing? Well, things are a little dynamic right now. But just to give you a point of reference here, between roughly a six-month period, okay, on the far right, you can see what they were thinking. And then on the left, you can see where we ended up, you know, based on this report. So, look at GDP, for example. More and more people thought early on that we were going to be in a recession. The GDP would fall and we'd hit the actual definition of recession. So, that didn't happen. Same thing with consumer spending. We thought consumer spending would be pulled back more. People are using up their, you know, savings from COVID and so forth. But again, that hasn't really manifested itself yet. Even with residential investment, which is usually a leading indicator for us, it didn't fall quite as far as we initially expected. It absolutely was impacted and slowed down. Again, this is national, but not quite as far. So, what this suggests is we have a more robust economy. You hear that on the news, I'm sure. And depending on where you're at, you may believe it, you may not believe it, right? It affects everybody differently. But from the measurements being used, we have a fairly robust economy and money's being spent. Therefore, on the positive side, our construction outlook is still pretty positive. People are planning things. People are investing money and so forth. So, not too bad, but this again gives you the idea of what the economic factors are going into it. So, 2023 ended up at about $1.1 trillion, a little over $1.1 trillion. There'll be a small adjustment, you know, like I said, in the next round, but that's basically it. 2024 is expected to be better than 2023 right now, at about $1.2 trillion. So, I want you to keep in mind these are total construction sales across the country, and every one of these is a record. I mean, it wasn't that long ago we were talking about $700 billion and $800 billion in dollars being spent in construction in the United States and being really excited about that. And you've seen these numbers have included a lot of the inflation that happened early on in 2022 and so forth. So, they've already made assumptions about the inflation aspect of it, and that's part of it, but it's in here. So, what we're seeing is real growth potentials. And of course, as you go across, you're seeing that we've basically got a CAGR over the next few years of about 6%. So, still a very positive growth direction. Below it, you can see what the previous projections were. Not a lot of change. Very small changes out there. Some have gotten a little better, basically, than where we started from. Some have gotten a little worse, but nothing that's material, nothing that changes it dramatically. As you look at the different inputs, meaning like residential versus, you know, non-res and so forth, the numbers change. A lot of work in infrastructure. You'll notice we start to ramp up more. We did take a pretty big hit in residential, as we discussed earlier, a little bit of a hit in non-res, but we see those coming back and all in the positive direction going forward. Now, from a segment standpoint, this is the breakdown by DODGE. Again, you'll have a copy of it, and it is important because some things are hidden in here that we care about. But this gives you kind of the segmentation approach as you look across the growth in that last column. First of all, again, everything's positive. They have reduced, okay? Some of these have gotten a little smaller as far as their growth rates, but in general, there's still a lot of money being spent positively. I said about $1.2 trillion this year, almost $1.3 trillion next year. So, pretty good stuff there. If you want to compare in some of the areas that are really big for us, you know, Bridges has actually increased a little bit in its growth rate and spend. The previous forecast had it at 1.6 kegger, and now it's at 2.7. Parking decreased a little bit. It was at about 8% growth rate or kegger, and now it's at about 7.3, again, nationally across the country. Still $81 billion over the next four years being spent in the parking industry, though. And pleasantly, warehouses, which really took some hits, is starting to shift back around the growth rate. But this is a good example of looking at magnitude as well. 22, the magnitude was $60 billion, and then it dropped off, and dropped off again, and dropped off again. So, we're starting to see it come back up, but it's basically two-thirds of the industry that it once was. And it will grow, but notice it's not jumping back up to the $60, $70 billion mark that we saw during the COVID times when we really shifted how we buy things, right? So, again, magnitude and direction to get a feel for what's happening out there in the marketplace. Now, here's something that gets a little bit more near and dear to our hearts, and that's what's the potential for precast? So, this chart takes the adjustment for everything that I mentioned about the SRM, and how do you translate this to in any given project or category? How much is available for us? You know, what could be done on a precast? Again, what could be done on a precast? And so it's not a perfect science, but it does give us a pretty good representation of it as you go through these different segments, the value in a given year across the country that could be done on a precast. Overall, when you look down at the bottom for this year, you're talking about $88 billion that could be done on a precast. Now, this is enclosure systems, which are pretty much every building except maybe single family, and we could do it, but we don't do a lot of it. And structural systems, right? Structural systems of building, total precast, infrastructure, bridges, parking. It's not underground utilities. It's not, you know, a lot of the other things that we've seen done on a precast. This is what PCI does for the most part in our members. So this represents that. And again, it's growing. Over the next four years, $388 billion of work being done could be done on a precast. And we know it's not realistic we're going to do all that, but if we had the capacity and the manpower and everything just fell in our favor, that's the kind of work we could be looking at over the next few years. If you want to highlight the biggest areas for us, probably no big surprise. If you're doing it just by magnitude, dollars, bridges is the single biggest category right now where money is being spent for precast. Number two is actually K through 12. It's always a big category. Might be a little more challenging some days to go after, but it's a good value proposition fit for what we build. That's followed by manufacturing, apartments, which is actually multifamily work, basically. And then parking is in fifth place. And this is just by dollars of magnitude in the very last column over there on the right. So now let's talk just a little bit about precast itself. How did we do? So we did our market survey. I want to, as the chair of the market research and metrics committee, I want to thank all the producers out there. We couldn't do it without you. We greatly appreciate your help and input and time and all of this, but it enables us to gather data we couldn't get anywhere else and then have a much better understanding of the market itself. So we had 100% of the sales represented. So again, thank you to all the producers out there. We greatly appreciate those efforts. It is based on where projects are located. So, you know, again, just kind of a differentiating thing to keep in mind. If a project is built in Ohio, that's where this value falls. It doesn't mean it was manufactured in Ohio. It was manufactured by a PCI certified plant, but it might not have been manufactured in Ohio, in my example. So it's where projects are, where the market is using precast, not where it's being manufactured. So 2022 was a great year. This was a record breaking year at $7.1 billion of precast concrete sales in the United States. That is just an amazing number, right? Our previous peak was in 2019 pre-COVID at 6.1. And then some weird stuff happened in 20 and 21, right? We had some strange pandemic thing and inflationary thing and labor thing and all that other good stuff that really caused a lot of disruption. And 22 looks like it was a pretty good year. We really started to crank out, get some things going again. And hopefully you saw 23 to be a decent year as well. Now, where was precast sold? So this looks at it by PCI region geographically. This breaks down that $7.1 billion of precast sales. No big surprise. We usually see a lot of precast up throughout the Northeast and the Mid-Atlantic corridor and kind of all the way down through the East there. A lot of population centers, a lot of big cities. Weather plays a factor obviously, especially up in the North regions. But about a billion of it occurred just in the Mid-Atlantic region, followed by Midwest at just under a billion basically. PCI Central down in the Texas world, all the way down to Oregon and Washington, which they're just two states. But at the end of the day, it gives you an idea, well, where is it happening? And you can see that now we have historic data on how the growth has occurred over the past five years. And the middle one gives us a year-over-year change. We've seen some really nice bump-ups. There's actually only two regions in the entire PCI world here in our country that had a little bit less in actual dollar sales than they did the previous year. And keep in mind, the smaller you get, right, like a one or two state regions, one large project could impact this quite a bit. So if you built a big stadium one year and you didn't get a second stadium the next, you might see a change. So it's not necessarily negative. It's just an understanding of where's money being spent? Are we going in the right direction, right? You don't wanna see big drop-offs in places. You prefer to see something that's understandable and explainable. And these are overall, like I said, very positive in our best year ever. Now, looking at it from a segment standpoint, okay, so this would be the market segments where projects are built. These are precast sales. So again, this is that $7.1 billion for North America broken down, and you'll see parking's the biggest at about 1.6 billion of it. No big surprise. Parking's always been a very big market for us. You've seen we've done more in parking in previous years, and we've dropped off a little bit in our sales. You'll see warehousing is obviously really big. Bridges has always been manufacturing. You know, these are things that are typically towards the top of our list. Now, now that we have some data, if you look along the right-hand column, we can actually understand what that compound annual growth rate looks like for us in various segments. Where are we truly showing a lot of growth? Where might be something we want to look at? And I draw your attention to parking's been kind of slowing for us. The parking market is expanding and exploding. But in terms of our sales, slight decrease. In terms of our market share, which we'll talk about in a minute, a decrease. In other areas, we've done a lot of growth. Pretty solid there in transportation. Obviously warehouse, we really took advantage of that. A great growth over there over the time, the last five years, basically. And you can work your way through and see. Some of these areas have really shown some tremendous, very positive growth rates. You know, data centers, K through 12, et cetera. As you look at this, depending on where you're at, you can start to get a feel for how what you're doing is being impacted and how you're impacting the industry. Especially when you get in some of these other segments. You know, higher education, for example, about halfway down is an area where we can do really well. Again, really strong value proposition for those kind of things. We're seeing a decent growth rate, but its magnitude is still fairly small for us. You know, we're always playing in that, you know, 50, 60, you know, $70 million precast range. We're not exploding this up to the, you know, two, three, four, 500, you know, that kind of thing. We could, but we don't seem to be doing that, at least at the moment. And that's the same for many of these smaller categories right now. Now, again, national perspective. Let's take a look at what the real market share is for precast. So first off, we have grown market share. Everything you see in green is a year over year market share increase nationally. And in 22 over 21, we did that in seven segments. So that's not too bad. You can see historically, looking at 20 or, you know, excuse me, 2019, et cetera, some other areas where we've seen some market share growth. It's tough in one year. Usually you need multiple years to see if you're really impacting the market and understanding if you're gaining real growth. One year's a blip in time, it's helpful. But now that we're getting historic data, we can actually start to see the trends. And again, are they trends that we like, or are they trends that we should be concerned about? So in the looks of parking, for example, if you move down the page a little bit here, you'll see the parking. We used to be pretty consistently up in the high 30s. Over the past several years, we have been losing share. Even when I was a PCI, this number was falling down below 30. Now you can look at the past few years here, we're seeing about 23, good bump up there in 20, probably because we're the only people that can make anything. And then it starts to go back down to that trend and getting a little bit lower, a little bit lower, a little bit lower. You need to be aware of these things in your business. These are tools and information that'll help us understand what's happening out there. You can be very busy and still be losing market share. And it might be explainable, but at least you need to know that and decide in our businesses, is this acceptable? Is this what we want to happen? Maybe we're focused on something else, or is it not okay and we need to do something about it? This all can help us understand that. As an industry, we're sitting at about 8% share. Yes, we were a little higher. When I was a PCI, we were at five. We moved all the way up to 10. And then we fell down a little bit here to about eight. Not bad. Keep in mind, the construction industry grew a hell of a lot over the past couple of years, like more than we've ever seen growth rates before. And our industry is growing, but it's very hard to keep up when another industry such as the total construction demand, let's say doubles, and you don't. So it's expected that you might end up losing a little bit of share, relatively speaking, in that scenario. Okay, a different way to look at it is by products. So using PCI certification categories, basically. And we break this out by structural building, which includes parking, structural transportation, obviously all the bridge and so forth, any architectural in all the categories, and then hollow core. So thinking in terms of products. Now, the top line that's highlighted in blue is because at one point we had it all together. And so going out to beyond 2018, 17, going backwards, we had it all together. Now, we've started separating those two to just better understand the dynamics between the transportation world and the structural buildings world. And that's why there's a difference there. So that top line is the total of the structural building and the structural transportation categories, okay? So as you look across here, there's good growth rates there. You know, our buildings industry seems to be growing at a rate roughly of about 3%, a little over 3.5% maybe a year. Transportation's done really well, about 7.5% type of growth a year. Architectural's done amazing. The architectural industry in what we're doing, again, it's applicable to many building types, is averaging over 15% a year growth. And it has been for quite some time, even beyond the other five years of data we're showing here. Even when I was there, we were at 500 million and so. So I mean, it's really been showing true positive growth out there. But everything is really done well. Holocore has grown, obviously. Really, the only area, the other is a catch-all category. We have some producers that are doing products that don't fit in one of the top categories yet. As we learn more data, we can break them out. So there's a couple of other things that get caught up in there. But it just kind of gives you an idea of where things are going in general. Obviously, GFRC is even still growing and so forth. Something new we've added, and are just starting to get an updated to report on, is just getting a feel for, well, how much in terms of like a double T, or how much Holocore or bridge girders are being produced by our industry. And are they going up or down, right? And so this just kind of gives a unit idea of that. I know it's generic, but it's a starting point to get a feel for. Wow, okay. So in terms of we use square foot, for example, of walls, there's about 222 million square feet of walls were produced in 2022. Not an absolute perfect, but it gives us a ballpark feel for things. Same thing for Holocore, girders were done by linear feet. And obviously, there are different sizes of all these, but at least it gives us some understanding of about the kind of volume or unit that we're producing out there. And over time, again, you get a much better picture of what direction we're going and what's growing and influencing those segments we just looked at. Okay. So that's kind of the national perspective for it. Now we'll take a look and go through the PCI regions again. And again, I'll highlight to you, it's not in depth, but at least as everybody's listening, you kind of get a flavor and a feel for the direction of the industry and how things are going. So these are PCI regions. This is a quick snapshot of what total construction looks like in 2024 and 2025. And it also gives us a percentage K for the next four years. Now, one of the things I want to point out, if you see an underline, what it's saying is, is that compared to the last forecast, that value has decreased. And so one of the things we've seen is the growth rates have been decreasing. They're still positive. So we're still growing in almost all cases. But maybe it was 8% a year ago, and now the growth rate's reducing to maybe 7%. And then maybe this forecast it's at five. So there is some slowing happening, okay? But it's still in a positive direction. And there are a few cases where the magnitude of the numbers have shifted a little bit. Just looking at the screen, and if you go to Mid-Atlantic, you'll see that in 2024, originally they had forecasted for a higher number. I do not remember what that number was. They're still there at about $108 billion of construction. So not so bad. Okay, we're going to start on the West Coast. And we'll look at this a little bit closer. So first, here's how we did. Okay, so these are the 2022 precast sales. This is the portion of that $7.1 billion. And the market share, all broken out by segment. Now this first slide is just for PCI West, right? So it kind of gives us an understanding of, okay, what did well? How'd those sales break out? And how are we doing on the market share side? So there are a couple of notes here. You'll see them on every slide. But I just want to point out, if there's a zero in the sales column, what this means is, well, kind of straightforward, I know. There were no sales in 2022 in that particular segment, okay? If you see the letters M and N, what that means is, is the minimum to disclose the sales in the region was not met. Now, there were sales. That's the important thing. There were sales in that segment in that region. But we have some governing guidelines around what we can share back. And we're having some discussions about that. But for right now, the minimum was not met. And therefore, it's included in all the national data. But it's not being able, through our current guidelines, to be shared at a more regional or localized level. That's what that's referring to. And then the other one I just want to point out is, oh, well, in relation to that, when you look at the totals, they're not going to match the totals we saw on the regional sales summary chart, because that includes everything. It's not a segment breakdown. And the delta here is those minimums not met that can't be displayed, which is why the bottom line total of the precast sales here, the 375 million, is less than the total on the other summary sheet, okay? The last comment I'd make when you're looking at this, anything with an asterisk, we are assuming is a total precast structure. Doesn't mean the other ones can't be built that way. But this way, you know what the SRM reflects, okay? Obviously, bridges and parking are common ones. But we have enough data also on data centers and dormitories now that are done out of total precast to make that calculation for that. And that's what's being assumed, okay? And we'll highlight a few examples of that, because it goes both ways. Everything else is assumed we're talking about enclosure. And sometimes you'll see market shares that are above 100% in one of those categories. And that is because it was assumed it was an enclosure, but reality, we might've done total precast. So you're selling more of that structure than what's being taken into account in the analysis, okay? So looking at the West, not too bad. Bridges, obviously, really big parking and office structures out there, okay? Notice data centers is part of office, but it's broken out separate here. So that is literally office buildings. So apparently in California, people are still building those things, okay? Then you can see the market share. Overall, PCI West market share is about 4.5%. Okay, there's a little note over here comparing it to the national. It's just kind of a reference. National was at 8.1. So a little bit less overall in 2022. Remember, we like to look at multiple years. Some of these other market shares, though, not too bad at all. I mean, you're talking 17% in bridge. That's a great number. 44% in government for a market share. Clearly a leader there, okay? Healthcare, 14.5%, not bad at all. You know, water supply. Now, I want to point out on water supply and a couple of these, I would call them infrastructure areas. They are probably not as accurate yet because we are still gathering data to create a more accurate SRM value. And that controls everything, right? The higher the SRM value, the bigger the denominator, and hence you could end up with a different market share. So that may be a little bit artificially inflated down there, and that's why. In terms of the forecast for the West, not too bad. Again, you know, it's a little lower than the national forecast and an average CAGR about three and a half percent, but still directionally positive, $125 billion construction, 127 next year. So not too bad. I want to point out Nevada, a little bit of slowing down occurred there. Notice as you move into 25, a little bit smaller numbers. Maybe there's one less resort being built, but still, there's still work being done in the area. Okay, looking at Oregon, Washington now, you know, big picture again, about $134 million in precast sales of the 7.1. Big areas were bridges, huge in data centers, other non-building, which, you know, could be other projects, including stadiums, but we break stadiums out here as well. But I want to point out, in those cases, there's a lot of minimums not met. So it's not factoring in to the total dollars that we see at the bottom. So average here, not too bad, about 4.7%. And I will highlight, I guess, just for clarity, some of these subcategories that we've broken out here for our own use, okay, are wrapped up in bigger categories. So if you look, for example, correctional. Correctional is viewed as part of government spending, so government contains the values for correctional. Okay, now in this example, of course, there were zero sales in there, but had there been sales in there, it would really reflect it as part of government. Data centers as part of office, again, now we have enough, we can pull that out separate. And there's a couple others you'll find, libraries, museums are usually part of higher ed, and stadiums are usually part of other non-building. As far as direction, positive growth, still running about, you know, that $41 billion up to $50 billion over the next few years. Little higher than the national average in terms of growth rate. Washington, obviously, a little better than Oregon. Okay, let's see our friends in mountain states. So big year for bridges, again, data centers, parking, pretty good number, pretty good market share there. You know, some are, again, really high data centers, about 21 percent market share. That's fantastic. Clearly a leading technology or product used in that system. So just, again, reiterating what we've discussed, if I'm in the PCI mountain states region, we're building a lot of data centers, which is, again, strong value proposition, really good fit for precast. We know we're pushing up into the 20s. We better be prepared for whoever else is an alternate. They're definitely coming after us. Like, we're on the radar. I know you guys know that, but, I mean, that's a big difference compared to some of these other categories where we're probably not even on the radar. As far as forecasting, again, pretty positive, little bit better growth rate than what we see on average across the country, about 7.3 percent. Still looking at the 30s, high 30s, doing these dollars construction every year. Keep in mind, well, I'm sorry, Arizona, I was just going to say Arizona is included in this. That's the way it's broken out by the data. So Arizona has to be included in all of the market share analysis back here. Just for clarity, that it's not just PCI mountain states. Arizona is included in those numbers. Here the forecast, I was able to break them out separately. To correct the comment, when I was talking about the third, that's just the state of Arizona. Obviously, mountain states is looking at the high 60s and 70s for construction spent. Okay. Let's see what's happening down in Texas, Oklahoma, and New Mexico. So not bad, pretty good year, right? Looking at about $760 million of precast, big year for bridges, manufacturing, and parking. We have a market share a little bit less than what we see across the country. But as you get into the categories again, it changes, right? You look and see, well, what segments are doing well? Great market share in bridges, pushing over 16%. Great market share in parking, not quite as high as the national average, but not bad. In some other areas are looking pretty good, government, et cetera. On the forecast side, big state, heavily driven by Texas, right? Yeah. Big state, big economy, a lot of money spent there. Good solid growth rates going forward. New Mexico, basically flat. Maybe a little contraction. You're not going to see a lot of that, but again, you are seeing some slowing going at the rate of growth throughout the construction industry. Still mostly positive. For the Midwest, again, amazing year. We're looking at almost a billion dollars of precast being built in the Midwest. Some pretty big categories there, looking at warehouses, manufacturing, even apartments, which again, multifamily and K through 12. Pretty sure if my memory serves right, that's the leading part of the country through K through 12 construction. Really nice market shares. I mean, 26% on the multifamily world, 17% on the K through 12. I mean, congratulations. That's real movement. That's real gain there. That's great. 40% in manufacturing. So just some really pretty impressive numbers here. Overall, an 18% market share, obviously well above the national average. As far as forecasting, still a pretty good story. I mean, again, you've got a lot of positive numbers. Kansas might be showing some actual contraction on their spend. Some of them aren't quite as large, but still positive numbers. Yes, it's a little bit slower than some parts of the country, but you're still spending or looking at potentials of $80 billion and higher over the next few years each. Okay, heading south down to Gulf South here. Really good year in bridges. Parking did pretty well for the region. Piles which rolls up under bridges in terms of market share, kind of gives you an idea. Yes, the market share is really close to the national average, basically. Some areas, pretty strong, really strong in the bridge industry in those states down there and so forth. Really great on data centers for terms of market share, even hotels. Those are pretty good numbers. Again, anytime you're pushing 20% range, you have a really good market share. I mean, I know everybody wants 100%, but it really doesn't happen. There's usually competition out there. And keep in mind, this isn't market share of precast versus another. This is market share of precast versus every other building material option in the region and in the segment. So you're beating out whatever the competing materials are here. Whether it's steel or block or glass, whatever it is, that's where we're taking work and that's also who's after our work, given the segment and the region you're in. Forecastings, a lot of growth rate potential, right? Almost 10% kind of a growth rate year over year, going in a nice direction and very positive. All states busy. Even my little state here of Alabama is going to do some work, it looks like. So not bad. I know the magnitude is a little smaller like in Mississippi and so forth, but still, keep in mind, when you start looking at this and you think, well, wait a minute, we did $183 million of construction for precast in one year, and you're seeing billions of dollars of opportunity. There's opportunity. You might have to think differently to get some of it, but there's opportunity. Okay, moving into the heartland, looking at PCI Central. Great year in parking, great year in warehousing and bridges. I know these are staples of ours, but there's a lot of other great areas here. Notice there's a lot of categories, a lot of segments where precast is being sold into. And that's the big picture win. You guys all know I say that. It's not just maintaining parking and bridges and the things that we do really well now, it's growing into other segments. That's tremendous opportunity for us. That's a big, big part of construction, and we have a really strong value proposition for it. So, it's nice to see that growth happening in other segments as we go through there. Overall, market share is a little bit higher than what we see across the country, depending on specific segments. Some really amazing shares there, right? I mean, you take a look at warehousing, up over 40% market share, religious, sewer, I'm just glancing through a couple of these. These are very impressive market shares. By any measure, any business, these are very impressive market shares. Forecasting, not too bad. Little slower than the country, but not by much. In general, all the states aren't too bad. I mean, Arkansas is a little bit slower in contraction. West Virginia, smaller state, obviously smaller magnitude. But in general, you're seeing some pretty solid numbers there in most of the big metropolitan states and a lot of growth there and opportunity going forward. Nice numbers moving out all the way up to, by the time you hit 27, $160 billion in spend. We like that. We like anything that's showing positive growth. That has to happen first. We need people to want to spend money on buildings for us to go have work to do. Looking at Illinois and Wisconsin, huge year in apartments, manufacturing, and warehousing. Just really stellar numbers. Great market share again, you know, pushing almost 18%, obviously well above the national average. $660 million of precast being built there in 22 out of that 7.1 billion. A few areas where, you know, couldn't disclose the information, but really respectable market shares, great work, great growth up in the region up there. Going forward, a little bit slower growth again than we see across the country. It's really not a bad story. Anywhere we look, the numbers are positive. They're going the right direction. There's a lot of money being spent. That doesn't mean there's not disruption in projects. That doesn't mean, you know, this is a big picture view for a state. So certain segments are hit harder than others. Some of the commercial money is being delayed because of high interest, but there's a lot of money in infrastructure. So as you dig through this, you look at what makes sense in your region and for your company. The opportunities are still there, but what makes the most sense for you? That's part of what hopefully everyone can do here. Moving up to the Northeast, big in apartments, big in parking and warehousing. You know, the main categories for the year and so forth. Market share a little bit lower than what we see in the country. But again, as you go through some of these, there's some great market share. Warehousing, you got pretty good. You know, that's a decent market share there. That's a really decent market share there. Some of these other areas, you know, we're getting into new areas, like I said, power utility, sewers and so forth. These are areas where we're working on refining our SRM calculations. So I just want to again highlight that we are doing work. Our members are making precast concrete more than once in these other segments, which is great. The market shares here, I would just be a little cautionary note that we're still refining the appropriate SRM values to reflect that number a little better. Okay. So those will get better. Take some time. We've been doing this now for over 15 years. So most of these other segments, very well refined. The newer segments, we're working on developing those as we go. As far as the forecast, not too bad, you know, again, a little bit lower, a little bit slower in some areas. Massachusetts has been – they're not contracting, but they've been slowing down a little bit on their spend. But you're still looking at $116 billion this year. Keep it on going all the way up to the $130s. You're going in the right direction. Obviously, New York's a powerhouse there, and they're pretty solid. But you do have some work in these other states, which, you know, is materializing in a positive way, it looks like, going through. Mid-Atlantic, you know, powerhouse year, if I remember right, number one in the regions in terms of sales, the largest sales, big data centers, parking, warehouses, great market share at about 11 percent. Keep in mind – I think I said this before – sales and market share do not always match perfectly. They don't always directionally go the same way, and they don't always match perfectly. Just because you have one doesn't mean you have the other, right? And so, these are some of the largest sales numbers, but in terms of market share, this isn't the highest market share of a region in the country, right? So, the devil's in the details, right? You got to look through all the information to understand it and reflect on where you're at and what maybe the next best move is to make. For the forecast here, going up Mid-Atlantic, pretty positive again. You know, you're higher than the national average, so a lot of work planned. I know we'd love to see that for the entire country. Maybe we can again. But overall, very solid stuff, you know, government work, also very high market share, etc. Forecasting, positive, growing a little bit more – or faster, I should say – than across the country. You know, big numbers, all the states doing very well, a lot of investment, it looks like, coming forward. And finally, Florida. Never last, just Florida. Big money, you know, big sales, I should say, in the bridge industry and parking, but also power utility. That was one of the areas where there's more precast being sold into. Sadly, as I described earlier, I don't believe the market share. But that's because we don't have enough data to refine it. But because of what you guys are doing down there, that's going to give us more and more data points that we can start to refine this and better understand what the true potential is in the power and utility markets for us, you know, for precasters, basically. But overall, pretty impressive here, a little bit higher than the national market share overall for the state. As far as forecasting, like I said, good growth still, higher than the average growth across the country. Should be, I would say, definitely a good solid few years here going forward. Okay. So, I know it's a lot of information. Again, you're going to get copies of it, and I always encourage you to reach out and, you know, you can ask me questions and so forth. If you have questions about it, happy to help and discuss. You know, in that overall sense, you know, the economy is still pretty strong. This is based on economic measurements, right? These are all these factors we looked at, like GDP and CPI for inflation and, you know, all these things there. People are spending money. Maybe they'll spend a little less, but people are spending money. You know, pretty positive. You see the forecast. There's really nothing negative in the forecast going forward. There's more money being spent now than ever in our history on construction. Yes, things are more expensive again, but that has been taken into account in numbers adjusted and reflective of that. Nobody knows what the future holds exactly, but in a general sense, I would say it's a pretty positive position to be in. Interest rates are going to remain higher for longer than anticipated. Most true economists are talking about probably the second half of the year. We learn more every day as the next round of data and reports come out. Depending on where you're at, how this plays out will impact you differently. All the more reason to really look at this kind of data, analyze it for your company, your situation, and then make the best business decisions you can, so forth, right? Like I said, when you look big picture, we are a small part of the construction industry. In this country, we're about 8% market share. Now, let me stress again, just for clarity, that's not 8% of construction. We have an 8% market share, which means the other 92% of it could be done on a precast. It's not right now, but it could be done on a precast concrete, so that is a lot of room for growth and a lot of strong possibilities for us and our industry. So, with that, I will turn this over, if I can, back to Nicole, if you're still there. Can you hear me? Yes, I can. Thank you, Brian, for a great and informative presentation. It doesn't look like we have- I have a few minutes. What? I said, yeah, I have a few minutes if anyone has any questions now. I haven't seen any come through, but I'll give it just a few more seconds to see if one does. Okay, yeah, that's fine. And like I said, you know, most of you know how to reach me. My email and phone number should be on the screen, especially after you get the data in the report. Feel free to reach out if you have questions about it, or just want to chat for a minute on maybe something more specific in your region, your state, or in a particular segment and so forth. All this is available to you through PCI. You are members of PCI. These reports are available to you. We do this for you to help your businesses, to help you grow and make the most out of what you guys are working on. Perfect. It doesn't look like we have any questions. So, on behalf of PCI, I'd like to thank Brian for presenting today. If you do have any further questions about today's webinar, please email marketing at PCI.org. Or, of course, you can email Brian with any questions about the market survey. Thank you again. Have a great day and please stay safe. Bye, everyone.

Nicole Clough

PCI

Brian Miller

CRISO GCP Applied Technologies

Construction Forecast

PCI Market Survey Update

Precast Sales

Market Shares

Construction Industry Forecast