Good afternoon. Welcome to PCI's webinar series. Today's presentation is PCI Construction Forecast. My name is Nicole Clow, Marketing Manager at PCI, and I will be your moderator for this session. Before I turn the controls over to your presenter for 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 PCI Marketing at marketing at pci.org. Please note that all attendee 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'll 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 CS, 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. I will now hand the controls over so we can begin our presentation. Okay, Nicole, can you hear and see everything okay? Yes. Perfect. Thank you very much. And good morning and good afternoon, I guess, to my East Coasters. How are you guys doing today? I hope your week has gone well. Time to have some fun and excitement with some numbers and the latest data that we have related to our wonderful construction market here in North America. So, look, today we'll start off by going through a few ideas around how you guys are hopefully using the data. This forecast and the detailed reports and stuff are all available to you on the PCI website. Then we'll take a look, of course, at the national perspective. You know, where do we think things are going over the next few years? We do have the 2023 precast sales data. Some of you might have seen this at the regional meetings, the early ones this year, but I'm sure that a lot of you haven't. This just came out here at the end of the year, basically, and was made available. We'll also take a quick glance at a regional perspective today, the PCI regions, breaking it down quickly on what the forecast looks like in the big picture, as well as how the precast sales and market share are doing by the individual PCI regions and so forth. So, we'll get started here. As I always point out, it looks at my data. You know, we take data from a variety of sources, the biggest two being DODGE and, of course, all the survey data, which the PCI producers provide, and pull that together, aggregate it, and, of course, do the analysis to present this back to you guys. The national forecasts, keep in mind, are all based on construction starts. The simplest way of thinking of it is whenever that project is scheduled to start work on the site, that is typically the year that they put the full value of the project in. So, if it was to start in December, you might see it in this year in 2025, even though, obviously, the bulk of the project would carry over to 26, 27, et cetera. And from our standpoint, we really want to know about projects before they begin. That's how we win projects, usually. So, that, I think, aligns pretty well. As you look through all these magnificent numbers, try and keep in mind two high-level things to consider. One is actually the general trend of a particular segment or area that you're looking at. And that, the simplest way to look at is by the compound annual growth rate. Essentially, if it's a positive number, that segment or area is expected to grow over that period of time. The example down here is 24 to 27. If it's negative, obviously, they're expecting contraction. It's kind of like an average, but it doesn't mean it's exactly that number year over year. It just says what the next few years would look like, and that percent would kind of get you to that end point at the end of the period that you're looking at. And then, of course, the magnitude is the other big piece to consider. In parking down below, just by example here, we're about a $20 billion across the country total construction spend. And that's up from where we were even just six, seven years ago when we were talking about a $14 billion market. So, a lot of that is in our favor, but that's really different than when you look at, let's say, a $65 billion market for schools. So, it's important to understand, even though some opportunities are growing, do they align well, and what's the magnitude of the opportunity for us, actually? Now, one of the big ones I always talk about is this data is pretty much everything you need to calculate your market share and figure out your positioning in the market that you're in. So, looking probably at least at a PCI regional level, for example. And so, we'll do a quick example here. Maybe you guys can follow along, have fun at home. If I said, do you know your sales for a specific market? My example today will be data centers. I would hope you all go, yeah, we know what we sold in data centers last year. That's the first piece. That's the piece you really have to contribute. So, in my hypothetical example, let's just say we did $10 million in sales in data centers last year. The second piece of information you just got to know is what are the total construction sales for that market? Preferably in the exact same year and segment that, you know, that your sales are in, so they align. So, in my example, let's just say it was $2 billion. Now, here's the good news. PCI gives you this piece of information. This is, in every forecast, it's basically everything you need to finish this calculation. There's a secondary piece of this, which is what we call the relative market, and that is just the adjustment we make. We say, look, if total construction is $2 billion, we don't build all of the entire structure. So, what part is relevant or relative to us, right? And in most cases, we're talking about enclosure systems and structural systems. So, PCI has done the work. We looked at it and said, okay, for data centers right now, we're averaging about 15 percent of the cost. That is for the enclosure only, I'll highlight. It doesn't mean we're not doing total precast. It just means as we collect more data on total precast, we'll be able to adjust that number and maybe offer two relative market calculations. But essentially, I take that, multiply it out, that gives me $300 million. So, that's the potential for precast, right? And if I did – and as I said, PCI does provide this, too, so that – it's national. But after a lot of work on this, I don't think you'll see tremendous differences in the regions and so forth. But you are welcome to recalculate your own. We can help you do that. So, with this piece of information, just take my sales, divide it by the potential, and voila, we have a 3.3 percent market share. Again, this is a hypothetical example. It's just a process. It's not really a complex process, but it is a very important process. And it's a very important piece of data for all of us to know about where we're at in the market and stuff. And we'll highlight a few more things and talk as we go through, but if you're in this position, you should have some idea of what kind of position relative to your competitors you are in in the market because that dramatically impacts your strategy. It really should be a big consideration of what you do next, what you invest in next, et cetera. So, we'll highlight a couple ideas. So, for example, when I talk about market share and position, if you did the calculation, you go, hey, I'm less than 5 percent. Okay. Well, what that typically means is you're not really on the radar of the competitors. It doesn't mean somebody doesn't know about you. You're doing some work, but you're not really the primary concern. You're kind of on the outskirts, right? Most of the time, we're battling the big, the largest competitors in this particular market or space, and that's where the attention and focus on that gets most of the resources, et cetera. So, this could be a good position for us, though. We're in this position as an industry in a lot of markets where we can make some strides and do some things, and there's not really a lot of focus on us from an industry or competitive perspective. Now, as you move into, let's say, something like 5 to 20 percent, then we kind of say, well, you're clearly a player in the market now, right? People are starting to become aware of you. Your competitors know you're out there and stuff, but you might not be front and center, right? You're not having your own movie like the Captain America or Iron Man, but at the end of the day, you're part of it now. People are aware of you. You must be doing something right. Things like that start to play into the decisions. And then, finally, after that, you say, okay, well, what happens as we start to get up to a greater market share? Well, look, once you're above 20 percent, these aren't absolutes, but in a general sense, you're considered clearly a competitor. You're one of the leaders in the market. People know who you are, and what that really means is you have a target on you, and what your competition is doing is pretty much trying to take you out, right? And by that, I don't mean competition necessarily being a precast down the street. We really don't own 100 percent of anything, right? We're really big in bridges. We've grown a lot in data, but there are other materials and systems out there that dominate most of the segments we're in, and that's really what we're talking about, whether it's steel, whether it's cast in place, block, glass. There's a bigger powerhouse out there that's really targeting us, and so when you're in those positions, you just got to realize that somebody's really coming after you. They want to take you out, basically. So, in terms of a strategic standpoint, usually when we're, you know, in a very low percent, like I said, about five or less, you can do nothing, obviously. Maybe you're just happy to have a job here and there from that particular area, and if it makes sense, it makes sense, but if you're trying to really grow in an area, then you got to start raising awareness about who you are, what your value proposition is. You probably have to continue to develop your value proposition, your competitive advantages in that space because you're just starting out, right? It's not like you've done 150 projects in that space, usually, whereas when you're in that mid-range, kind of, you know, to maintain it and grow is more work, basically, right? You're trying to leverage the success you've had. You've hopefully got a value proposition fairly well established that your customer agrees with. That's where they're buying from you, and you're trying to leverage that momentum. So, those two strategies are kind of different, right? They're not the same thing, and then, of course, if you go all the way and you say, hey, look, we're a market leader out here, you know, we might not be the number one leader, but we're clearly one of the leaders in a particular segment, chances are you're going to be defensive. A lot of people are coming after you. There'll be a lot of pricing pressure on us in that particular situation. So, usually, innovation is a key to growth, providing or doing something that no one else does, providing or doing something that your customer's customer wants but other systems can't provide, right? That's a strategic standpoint of it. So, depending on where you're at, again, these are just high-level kind of way of looking at it. Your strategies become very different. So, kind of highlighting that in an example, we'll compare and contrast these two real quick. So, scenario one is, hey, guess what? I build parking structures. You know, these are hypothetical. Again, I build a lot every year. So, I have that market share higher, like, say, 25%. Well, of course, that means, again, you know, people know who we are. We have a target on our back. We're a competitor. If we look at another scenario where we're just starting out, I mean, we've done a couple schools. We have a small market share. We're in that first category, right? Less than, you know, 5%. People aren't really sure who we are. So, from a positioning standpoint, in scenario one, clearly a leader, right? Again, not the leader but I'm one of them and we're being talked about somewhere in somebody else's meeting, basically. Whereas in the other one, you have to decide, like I said, what do you want to do? If we're doing multiple projects, maybe you want to grow. So, we're in a growth position and how are we going to continue to move that growth, gain share, and be successful in that new market segment that we're working on. But when you think about overall strategy, do customers know who we are? Well, of course, they do in the parking segment. But in my K-12 example, they don't, right? And likewise, when you think about communication with them, whether it's lunch and learns, webinars, what kind of social work you might be doing, what's your social media programs look like? There's probably a very different message, as well as do you even know who to communicate with versus how to communicate with them? You know, who are the top five firms in that particular market that you're looking at where you're growing versus a market that you've been in for, say, 10 years and you're a leader in? These marketing communication plans are absolutely different between these two. And you could be in both boxes, right? You could be building parking and you could be building K-12 or some other project type at the same time. So, they require different approaches, basically. And from what I said earlier, from a strategic approach, clearly in the parking one, a lot of us are on the defense. Sadly, there hasn't been a tremendous amount of innovation in precast parking throughout the years. So, a lot of people come after us, right? And as that market has grown, there's been a lot of hybrid systems, you know, post-tension cast in place with self-performing GCs, things like that that are really pushing on us. And it shows in our market share. Whereas on the other side, like I said, you've got to decide how you want to attack this. If it's a growth mode and it's resonating, then how do you grow our market? Well, like I said, you've got to find out who the key players are. You've got to communicate who you are and your differentiation, right? Your value proposition for those guys. Start really making those connections and then doing the work out there. And, you know, getting more products out there, running case studies, using PCI, for example, to promote your projects you have done, the innovations you've done, things like that. So, all thoughts to keep in mind as we talk through some of this data. Very powerful things, really. And as you've heard me say before, strategic things, understanding this stuff makes that difference between making a little money and a lot of money. So, now we'll take a look at the national forecast. This is the most recent data. It's from the Q4 jobs report. They cut off and do their analysis at the end of September. So, what that means for you and I is it does not include the latest election results. There's only assumptions that were made. All projects, like I said, are in construction starts. And here are the assumptions that were used in the report, right? This is all the economic stuff, the job stuff, the cost of money, inflation. These are all the things that were assumed in this analysis by DODGE. And you can see what was projected. Now, again, if you go on the internet, you can look up any one of these and see, you know, is it going according to plan? How much has it changed? And we can probably make some educated guesses on how that might impact it overall. But I'll highlight a couple, right? As you look down here, we look at inflation towards the bottom. You know, CPI is a gauge we use. But at the end of the day, the 2.9 at the end of the year was pretty good. But they were projecting that inflation will continue to go down. And the latest reports suggest it's actually going the other direction. So, we're not approaching the 2.4 at this point in time. So, as inflation goes up, our federal funds rate, for example, the cost of money generally stays higher to try and curb it. So, you know, are we going to get down into the 4 percent range by the end of the year? If I had to guess, I would say maybe, but probably not at the moment. So, you can kind of see that will have an impact, obviously, in commercial projects. We've seen it already have an impact in the residential sector. If you look at the residential investments, they're still projecting that 25 will be a good year, 26, and then it starts to taper off. We'll see. Maybe that'll shift in the next report. Residential usually guides or drives a lot of what happens next in our world, right? Meaning commercial spend, infrastructure are the things where people are at. So, this way, at least you know what it's based on, what the assumptions were. Now, the current forecast is pretty strong, pretty positive. As we look at 24, we closed out the year about 1.1, almost 1.2 trillion dollars of spend. That's a record. As you look forward, it's all positive again. You know, there's really not a lot of negatives. I mean, down in the non-building, again, as you get out to 28, you see it slowing down. There's some assumptions there. We'll see how this actually pans out. Residential, you know, all of these are still in the general positive sense, like I said. And when you look at the total numbers and spend, I mean, we're just talking phenomenal numbers, 1.2, almost 1.3 trillion dollars of total construction spend this year, next year, and so forth. So, there's really no absolute contraction, no absolute downturn here. You know, sometimes some projects get moved and they adjust that. And so, you know, you see some percents change. But as you can see historically from the last forecast, they're all positive. There's nothing really of a material nature here that has shifted so much that it would dramatically change our strategy or your strategy going forward in many cases. Now locally, that might be a little bit different, and we'll talk about that here in a moment. This is the breakdown of the segments or the categories. The parentheses are important because there's some things we build and we care about that gets pushed into other categories at the moment, like correctional, for example. We do a lot of that work. That's hidden in government. The hidden I'm putting is in quotes. Data centers is a big one for us. Tremendous growth in data centers for our industry recently. That's hidden in office. This is a good reference slide for you to see where some of the other work is that we're doing, what category it's in, and then what percent of the category that breaks out, which can change, by the way, from year to year. Here's a breakdown of the segment outlook. This is national, again, total construction all across the country. There's that, looking at this year for 25, $1.27 trillion projected of total construction spend. That's not bad. Bigger than last year, right? You start highlighting some things here, obviously bridges. Bridges look pretty positive. Over on the side, I made a note relative to the last forecast so you could see what the shift was. Notice the spend isn't changed. The spend is really about the same, about $132 billion over the next few years. But the reason the CAGR changes, notice the downturn, right? As you go to 28, that number got a lot smaller. We're seeing contraction being projected in the spend. You look at parking, another really big area for us. Slight changes. You know, the magnitude total down there was about $86 billion, down to $1.1 billion. Again, yes, it's smaller, but it's really not a dramatic change for us. We were really happy when it was back at that $15, $14, we were loaded up. Inflation has been adjusted into all these numbers, so the relativeness of this has already accounted for the inflation. So still not a bad thing here, a lot of work here. Warehouses is finally turning around. You'll notice all those 40s there, it used to be in the 60s. Now we're slowly pushing back up, eventually getting out to about 51. Amazon has done some less, if you would, of some projects coming up there. They're kind of coming back into it. So that'll be a positive for us, since we're pretty big in the warehousing side. And then, of course, data centers. Data centers are amazing. The last forecast had us at about $73 billion, now we're up to $88 billion. That change occurred just within six months. So there's more money and more demand running into data centers right now. And as you can see, it's actually bigger than market. This is an important slide, because this is what we can actually go after for work. This is the adjustment we talked about for relative markets, took all those big numbers, adjusted them. The percents of the relative market are on the left-hand side. Those are national. They are based on hundreds, if not thousands, of projects now over the past, I guess it's almost 15 years now, that the data's been being collected. And what you see in front of you is what the potential is for precast, pre-stressed concrete. So this year, down at the bottom, there's about $91 billion of work that could be done out of precast concrete. It doesn't mean it will be. We know our sales are about $7.5 billion, so we're nowhere near the $91 billion. But potential is the first step, right? You got to have that before you can go get work. So that's a really good number, and it keeps going up over the next four years. So I mean, we're looking at four years, but like I said, that's a really good number, great starting place for all of us to find work, go after work, go after new work, etc. So that's a big deal. Now kind of highlighting the biggest portions of this, right? So Q12 is a huge industry, about almost $69 billion of potential out there over the next four years, and we are just starting to really play in it. Bridges is pretty strong for us, obviously. You see that in second place, multifamily, followed by parking, and then ultimately office. That's not data centers. That's actual office is showing a significant bump up. We'll see how that all pans out, of course. But again, at the end of the day, what you are looking at is the potential in any given segment or year across the country for precast concrete, structural systems, and enclosure systems. Okay. So here's where we are as an industry. This goes up through 2023 data. As I just mentioned a few minutes ago, $67.6 billion of precast was sold in 2023. So that is a record year. That is the most dollar amount of precast sold in North America ever. As you can see, the history there, we've come a long way in the past 10 years. So good growth. Even though the construction market kind of contracted a little bit, we continue to grow. And that's also evident in market share calculations, that we've actually gained market share. Okay. Looking at the sales for 2023, we had all the plants in there representing 100 percent of the sales. So thank you very much to all the producers. Couldn't do it without you. So that's critically important, especially now that we have historic data and we're making progress on everything and so forth. So very powerful. I mean, growing – the ability and power of this is growing more and more every single year. So that's fantastic. And keep in mind, this data is based on where projects are located, not where they are manufactured. It's where the buildings actually or the projects actually existed. So here's kind of the breakdown now. This is by PCI region. Okay. So if you look in the first column here, 2023, this is where that $7.6 billion of construction and precast construction happened. Three regions that each have over a billion dollars of construction themselves – Mid-Atlantic, Midwest, and then, of course, PCMA region. Fantastic, right? And you can kind of see the breakdown followed by PCI Central, Georgia Carolinas region. And some of this makes perfect sense. There's a lot of population in some of these areas. Obviously, winter plays into it, weather, and the motivation for using precast. But at the end of the day, most of these areas have grown year over year. Now we have historic data. So not only can you see the change year over year – we've only had a couple that showed some slight decreases or some decreases – but you can see the growth rates over time, right? We've gone back all the way to 2018 now. So you can see what areas of the country have shown real good growth rates. I mean, look at Midwest. It's over 10 percent a year on average as a growth rate. That's incredible. That's legit, right? Like, when we see positive numbers long term, especially if market share coordinates with sales and they're growing, then we're making a real change, a real difference. It's not just one project that helped us grow. We've actually taken share. We've won customers and things like that. So overall, this is a very positive picture. In terms of segments, this is the breakdown across there. Again, now we have historic data. So parking is up in 23 over 22 from a sales perspective. When you look historically, we've been higher. In fact, you could argue that essentially we're kind of flat in our parking market. Good or bad, that remains to be determined really by all the precast producers, right? Is that because of competing materials and systems doing things? We know there's been changes out there. We have a task group trying to better understand the market dynamics that have changed. Is that because we've reallocated some of our capacity to other work, maybe even more profitable work in some cases? There's all kinds of questions there to discuss. What we see here, though, are just the straight up hard cold facts, what the sales are, what our share is, and what's happening there. Bridges have been growing very nicely. It's averaged about 7 percent a year growth. Marketing, obviously, really big for us. We've come off our big year, 22 is the pinnacle year. Now we've come down a little bit, but still a pretty big segment for us with growth. Manufacturing, but data centers, off the chart. Incredibly solid growth. Some of the best growth rates we've seen in a long time for our industry, and in my own opinion, a very good alignment of value proposition that we offer to that set of customers and so forth. And then you can see the rest. Multifamily, K through 12 has actually been growing pretty nicely. I think we could grow more. We're making a real difference there. It's starting to grow nicely and consistently each year. You know, and some of the other ones, you kind of work your way down, you can see what I always joke around, say we dabble in some of these areas. One thing I have noticed in looking at the data, a lot of the utility type sections, which we're still working on getting more information on, we have been doing more in those spaces as an industry. And that's starting to show, like I said, in the sales and the numbers. Okay, this is national market share. So if you just start right down to the bottom, we're at about 9% overall market share in the industry. Okay? When I was on staff, we were at five. So we really have grown, and you can see the history there. We've had a few bumps in the 22 area there, and things were a little bit odd, because, you know, we had a variety of challenges. Everybody understands that. But at the end of the day, we really are gaining share. Everything in green is year-over-year share gain. We did it in green, and it kind of makes sense, right? We've just had one of our best years ever in 2023, so we should be gaining some share in certain places. What I will point out is there's four segments that have gained share consistently for three years, and probably even more impressive and important are two segments have gained share over four years. So again, year-over-year gain is great. That's a good direction to go. But it's sustained growth that we really look for, and hopefully it's, you know, like, targeted sustained growth. It didn't just happen. Hopefully it's something we as an industry or you as a company and a producer are doing to try and grow in that particular segment you're seeing results. But both data centers and higher ed have been gaining market share, and the data centers pretty solidly. Higher ed, as you notice, we kind of plateaued a little bit there. But the reality is that we're still kind of gaining share over the past several years, or maybe we could argue holding on to share over the past several years. But there's still a positive story. So as you hopefully can see, the more data we have, we can really start to understand what dynamics are at play, where we're really doing well, where we've got to be cautious of, and maybe where we want to be next as we go forward. In terms of products, just again kind of giving you a quick breakdown here, these are by the PCI certification categories. You know, this all kind of correlates pretty well. When you look at parking in the structural world by product, okay, and the bulk of that, of course, is parking, you can see we're actually flat to a little bit negative long-term. Year over year we fell 11 percent. Okay, this kind of aligns with some of the share loss we've seen in different areas. On the opposite side, though, in transportation, you see the growth, pretty solid growth, too, I might add. The other big one here is in the architectural world. This has been the clearest positive growth and improvement I've seen, period. We're at almost $2.6 billion. More than a third of our total precast sales are in the architectural-slash-wall systems and flow systems. Growth rate is running just under 14 percent. That's an incredible growth rate no matter what industry you're in. And we've also learned that about, you know, this continues to grow, too. About 57 percent of that were insulated wall panels. So I can tell you, you know, again, going back a ways, that number was down in the 30s and the 40s. I remember that. So there was real solid growth there. People connecting with what an insulated wall system can do. It's a strong value. It's a strong part of our value proposition for our customers in the enclosure system market. And then, you can kind of go through the different areas. Like I said, underground or utility-type products have been growing pretty solid. GFRC has been decreasing, sadly, you know, in a general sense. Holocore has kind of plateaued, it seems. There's been some growth. But, you know, again, you can look over the history and say, yeah, there hasn't been a lot of change there. So, okay. Let's take a look from a regional perspective real quick. So again, PCI regions, when I say that, this is just a quick snapshot of this year and next year. You know, what we're looking like is total construction spend. If you are looking at something that has an underlying, what that's saying is that value has decreased from the previous forecast, right? And it's just a very quick snapshot, but it could be a signal, is there more contraction happening in that particular region, or is it just shifting? Products move around, you get one big one that shifts, and therefore, one number goes down and the next year it goes up, and it's not necessarily the end of the world that way. But we'll go through each region and take a little closer look. So, we'll start out west here, looking at PCI West. So, a couple things, and if you look on the left, a couple notes. If you see a $0 or NR for nothing reported, essentially, what that is just saying is there were no sales reported in that region, in that segment for that year, okay? So, I always say that that's what was reported. If you disagree, please let us know. The second piece is pretty important, because that means the MNM is minimum not met, and that means there were sales in that particular segment and region, but it didn't meet the threshold at the time. Now, fortunately, the PCI board has approved removing that threshold now, now that we're at 100% participation. So, in 2023 is the first year that we don't have that threshold passed, therefore, everything can be reported down to a regional level, and that's incredibly helpful, because there were a lot of things happening that were positive, but you couldn't really understand, because you can't get down to the numbers, and now we can, and as we go through. A couple other quick notes, when you see an asterisk, like in bridges, K-12, parking, that means we've assumed it's total precast. The majority of the projects that we get in are total precast projects, so the percent of the relative market is relative to that, right? Everything else you should assume is just, again, it doesn't mean you're not able to do or doing total precast, it's just for this data set, the data we have is only statistically relevant for enclosure systems. As we do more total precast structures, we will be able to add in additional information and get relative calculation for that as well. And then the third piece, or the final piece, I guess, down there in blue, we just took a quick average. Now, keep in mind, all the segments are different, they have different relative market calculations, so more of a parking structure is available to us than an enclosure system of a healthcare, okay? So, when you put them all together and do a rough calculation, in PCI West, about a little over 8% of the total content becomes available to precast. That's that combination of enclosures and structural systems in all the segments, okay? It's roughly about 82%. In regional meetings, we break it down into a lot more detail, but for the sake of today, we'll keep it pretty high level. So, here, if you look at PCI West, about 500 million are the precast sales, that's out of the 7.6 million, went to the PCI West area. That's where it was sold. And I've highlighted their biggest ones there, so parking was 118 of it, bridges, including piles, about 103, so those are the biggest ones, apartments, which is multifamily, fell in third place at, you know, just around, what, almost 45 million of it in sales. Now, here's what's interesting. If you look across the other side, I've also highlighted the top two market share areas. Notice that market share and sales don't always correlate, directionally or even just in that general sense, like, you know, there's a high market share of government work in that particular space. Don't have the answer why. I know we have a strong value proposition, but I'm sure in the West, that's something you would explore and look at, right? It's important to understand, if you have something right there, right, why is that? You should know those answers, and you may be missing opportunities if we don't understand those answers. Now, that could be correctional, because that's included in there, and that could be driving, and if memory serves me right, I think that was a big part of it. And then all the way down at the bottom, then you can see the overall market share. So, PCI, from a national perspective, precast was at 8.9 percent market share. In the West, we have about 6.1, so obviously a little bit lower than the national market share, and just sharing that for reference point, right? Numbers mean something when you can refer them to some sort of baseline, so this gives us baselines to understand things better. And here's the forecast. Nevada's gotten kind of flat, it looks like, for the next few years, but California, obviously, very big economy, very big market, and it's really driving the growth there. So $135 billion of total construction spend, as I said earlier. You could probably take about 8.2 percent of that to get an idea of how much of that becomes basically available or potential for precast. Growth continues at about 5.5 percent a year, roughly. So it's a positive story still. A little bit lower than the national, but still a very positive story. So now we'll take a look at Oregon and Washington. One of the smaller areas of construction spend, one of the smaller areas of precast spend, about $155 million of the 7.6 occurred there. Market share is around 6 percent, so not dramatically different than what we saw in PCI West. The average of the total construction spend is a little below 8, so we're at 7.9 percent. So those numbers will vary by region quite a bit, actually. Then the top mover is manufacturing, data centers, and bridges and piles, basically. Again, market share doesn't always align. Miscellaneous has a high market share, but data centers, the majority of data centers out there are being built out of precast, pre-stressed concrete. So we kind of really won that market. Congratulations, guys. And looking at the forecast side, pretty much on par with what we see nationally, again, about $43 billion in spend, going up to 48, basically, in the 50s. So a positive story, a little more aggressive growth out there. Notice the magnitude's a lot less than the West, but still, still a lot of good opportunity. Okay, looking at mountain states, guys, plus Arizona out there. So in terms of sales, $446.7 million of precast sales. Remember, right, that was a pretty good number over the previous year, 7.5 percent market share. So pretty close, getting a little bit better there, closer to the national, about 6.6 percent of the total spend. It's just a quick calculator again. Big areas, parking, of course, data centers, really large, high market share of data centers out there as well. Bridges, also a big sector. Those ones that are highlighted, that's where all the work is happening. That's the bulk of the work in your particular region. Good to know. Good to know if your market share is increasing or decreasing there as well, because when you have large share, and it's a big part of your region, competitors are after it, and if that market happens to go down in terms of forecasting, you're going to feel that impact, right? It's hard to be a big player and not feel the impact of a market change. So all different things to consider. In terms of forecasting out, not too bad, pretty much on par with the national. You know, again, without Arizona, you're looking at $66 billion and then going positive all the way up to $82. You can see it there by the states. Idaho is a little bit slower. You know, Wyoming, four people left Wyoming, so they're going to go negative overall and do a little bit of contraction there after this year. You know, but you pull in Arizona, Arizona's a big state, big economy, so that bumps it up quite a bit. And that doesn't look too bad either as far as that state goes. PCMA, always amazing. So that's one of the billion-dollar precast industries down there, parking, manufacturing and bridges. The key areas in leadership down there, even though the sales weren't as big in data centers, high data center market share for our industry, obviously a high share on the bridge side, overall 8.3 in terms of market share and running about 6.8 percent of the total construction spend. In terms of forecasting, one of the biggest, if not I think actually the biggest, you know, in those three states. But the story is pretty consistent, all positive, you know, continued growth is seen over the next few years. Great capability, running at about 9.3 percent a year, obviously Texas drives it, but the neighboring states also doing fairly well in their respective areas. Okay, looking at the Midwest, also another big industry, really big in the manufacturing followed by apartments and then bridges, the main areas there. Taking a look at market share, the bridges is pretty high. Overall one of the highest market shares in the country at about 16.4 percent this year. Just phenomenal, right? I mean, we're almost double the national average. It's tremendous growth and success has been happening in this particular area in these states. Something interesting to highlight there in correctional and government, you see 103 percent. Why that number is greater than 100 percent is they're just that damn good. Now, in a serious note, we've assumed that those buildings and structures are enclosures. If you are doing total precast and adding structural elements to those, obviously then the math is going to push you into a higher percent. So that's all that's happening when you see that is just that we've assumed a lower percent and there's probably a lot of total precast construction happening in there. And eventually, as I said, we'll be able to get enough data to add that piece into it and that'll give you the full reflection of it. Forecasting guys, again, fairly positive, not quite as aggressive growth but still going in the right direction here, all the way up to about 93 billion in total construction spend, only one negative area there in North Dakota. But some of these growth rates are a little bit smaller, right? So as I was pointing out, you got to think about where you want to put your resources, where you want to spend your time, et cetera. This hopefully gives you a part of a roadmap to do that. Looking at the Gulf South guys, about 266, almost 267 million of the spend down there, also a pretty good year for those guys. That's 10 percent market share, about the national average. Big down there in parking, bridges, followed by government and correctional. Their market shares, the key top market shares align pretty well with the correctional and the bridges. Again, still a positive story, good growth rates. It's nice to share positive information, nobody wants to hate you that way. Tons of opportunity, just keep going in the right direction for now. Looking at PCI Central, another really big spend over there, we've done about 856 million of our precast sales occur there, parking, warehousing, and bridges being the biggest three. I will highlight the highest market shares in the region have nothing to do with where those sales are. What we do in government correctional and data centers there is working really well. Market share is a nice way of saying the majority of the work out there is happening and you're getting it. Again, I highlight important things to understand so we don't miss opportunity and we don't lose out or lose share to competing material systems and forces out there. But overall, good market share, about 8.3%. Looking at the forecast, also pretty solid. Again, while it's a little slower than the national, at the end of the day we're still talking $150 billion of construction spend just in this year alone and going up from there every year in the foreseeable future. In the Illinois-Wisconsin markets, also about $558 million of precast spend, great market share, 14.5%, really big in the warehousing side, really big on the apartment side. High market share in manufacturing and miscellaneous residential buildings. Good story, positive information here again. It's going in the right direction. In terms of the forecast, still no real red flags. I mean, it's lower at the rate in terms of compound annual growth rate, but it's still growing at an average of 6% a year and we've still got $52 billion of construction spend this year. It's fun saying that stuff because there's no downside to it. That's all positive information, positive numbers, and most importantly, positive opportunity. In the Northeast, about 4.4% market share, mostly occurring in warehousing, parking, and K-12. Some really nice growth there been occurring in K-12. Market shares are in alignment with warehousing and parking, but at the end of the day, we're seeing some other areas in this particular region use more precast concrete, and we need to do that. We need to diversify and expand as an industry. Overall, as I kind of highlighted, of total construction spend, this is almost 11% is available to precast, so it's the types of projects they do up there, right? The national relative market doesn't change. That's a structure type-based thing, but in each area, if you do more work in certain segments with higher percentages, right, relative percentages, then you have more opportunity, basically, and so just a higher percent calculation to keep there, but again, pretty positive story for the most part. As far as the forecast, still going the same direction, guys. Again, not a lot of negatives there. Maine's a little bit slow and Rhode Island's flat, but at the end of the day, people are still spending money. They're still projecting to invest in our construction, and that's, again, what we need to have. Mid-Atlantic, another billion-dollar industry for precast, warehouses, parking, and data centers being the big three. You can see the market share aligns pretty well. Overall, 12.5%. That's a pretty solid market share rating. We would say that a lot of the competitors know who you guys are, right, and again, that means they're talking about us, right? The higher our market share gets in areas, our competing material systems are having conversations on how do we drive precast out of here. We need to know that and do something about it, basically. From a forecast standpoint, pretty solid here. All states growing, heading the right direction, 115, almost 116 billion this year. Just keeps getting bigger right now each year and going that direction. You guys in Georgia Carolinas, you know, the story just kind of keeps repeating right now. Again, bridges, parking, and warehouses make up the bulk of your sales. Keep in mind, high market share in hotels, too, and obviously, parking. I think it's one of the highest market shares in parking across the country. Overall market share, though, is about 8.4%, and not bad at all, a little bit below the national average, but what that could mean, too, is when you start seeing information like that is there's probably some opportunities we could take advantage of but are not at this point in time. Just a different thing to consider as you talk strategically about your plans. Okay, and on the forecast side, we've got, again, it's pretty much the same positive story. You know, growing at almost 10% a year, 108 billion this year alone, 109 almost, and keeps going up from there, every state doing fairly well. And as you get into it, you can see where projects are. You know, certain states will have more parking opportunity for you. Other states will have more data center opportunities for you, depending on what you want to target and go after that. That may make more sense. And then, finally, our friends in Florida, you know, again, 10% market sharing, big, that seems to make sense, multi-faceted also seems to make sense. Big market shares in dormitory and correctional, again, that's where your largest shares are. And I don't remember off the top of my head, but I think there's some growth in market share in some of these other areas as well, but overall 10%, very positive. And of course, the growth, looking at about 10% a year, we're on about 110 billion this year and then going up from there, all the kind of stuff we want to see in here. So this slide gives you the comparison of the market share, current market share we have across each segment, across each PCI region. So when you're looking at your own company, because you can calculate your market share, right, for your company, and you've got it for your region, you can kind of see, where do you fit it? What's a good market share versus an average versus maybe one, you know, you want to improve upon, right? This gives you the ability to do that and relatively see, you know, when you look across parking, for example, that's so big in Virginia or New York, I always say to us, when I see Georgia, Carolina is at 52%, that's great. That's the largest market share in the country. Why is that? If you're in parking and you want to know, maybe that's a good place to have some conversations, you know, what holds back in some other regions, right? And you can do the exact same discussions and variations of it in any area you're interested in. I encourage you to do that and, you know, maybe where you want to be interested in, you know, going forward in the future. So, a lot of information. At the point of this data, you know, we still seem to have a pretty strong economy. Again, as the next round comes out, we'll see some of the more recent decisions and changes, what that impact looks like, what we think will happen for the foreseeable future. But overall, in a general sense, seems pretty solid, pretty strong at the moment. Construction is probably going the opposite direction, it appears, which will also most likely result in not quite as much decrease in our funds rate and the cost of money. That obviously, I guess, can impact quite a bit in terms of, you know, how fast we build houses, how fast we do other developments, all those kind of things, right? So, we watch that closely. Obviously, hopefully, you've seen it through here that where you're at, where you live, what you're interested in, it varies, right? So, the more focused in we become on something, the more one project can vary that number dramatically. And it might not be the same story that's told as we do nationally or in a different region of the country. But like I said, yeah, at the end of the day, I think it's really relatively positive. There's a lot of opportunity out there. Overall, in our country, we're about 9 percent of the overall market, and we do have the strongest value proposition of any material or system out there. Doesn't mean it's perfect for every specific situation, but we absolutely do have the strongest value proposition to offer in any material or, excuse me, in any segment or situation. So, making sure we communicate that, looking at that, and taking advantage of it is critical for us to grow and grow profitably in the areas that we wanna do so. So, I encourage you to use the data, go through it, spend some time with it with your teams, your leadership teams, et cetera, and be as strategic as possible, right? There's a lot here to help you do that better now than ever before in our history. Take advantage of it. Okay. Look, we start late, we end on time, I think. Other questions, Nicole? Well, first off, thank you, Brian, for a great, informative presentation. I haven't seen any questions come through yet, but I'll give it just a few more seconds to see if any do come through. Okay. And, of course, my number and email are on the screen. You guys are always welcome, you know, to reach out to me with any questions about the data or any questions more specific to your situation. Always happy to help. Again, I wanna thank all the producers. We appreciate your timely support of the PCI survey and information. And I'll use that minute just to give you a quick plug. Please do this or have your people, whatever, share that information on time. The delays is why we sit here now doing this presentation in a year, a year and a half later. If this information is wrapped up in the summer, we can get you this data and reports in time for your strategic planning, which I'm assuming in most cases will be Q3, Q4, and it'd be very helpful then. So, the timing matters is all I'm saying, and the faster and sooner we can get it, the faster and sooner we can get it to you and make it more valuable. We did have one question come through. Sure. Is there any data regarding projects that have sustainability requirements for a project? Not through our current systems. So, yeah, it doesn't go down to the level of saying, yeah, this one had a LEED requirement or this one had some other carbon reduction requirement. That's not in any of the systems I've seen or have access to. It doesn't mean we shouldn't collect it or get our arms wrapped around it. I just, at the moment, no, that's not something we've seen. Perfect. And then we did have an attendee ask if we'll be sharing this slide deck. So, the handouts for this presentation, you should see it on your GoToWebinar pane under handouts. If you do not, you can send an email to marketing at PCI.org, and I'll make sure to get you a PDF version of these slides. Perfect. Okay. We're a little short on time, so any additional questions that come through, I'll have those sent to Brian. But on behalf of PCI, I'd like to thank Brian again for a wonderful presentation. If anyone has any further questions, like I said, please email marketing at PCI.org, or you can also contact Brian based on what you can see on the screen. So thank you again. Have a great day, and please stay safe.

construction forecast

precast concrete

economic outlook

market opportunities

PCI regions

sales data

market share

strategic planning

Brian Miller