Rock Products - Coverage Report January 2021

Published on: 09/29/2020

Capstone Headwaters has released its most recent Rock Products industry update, available for free download below.

Construction activity has demonstrated resilience amid substantial COVID-induced headwinds, providing enhanced visibility for upstream aggregates providers.  Following a 12% increase in construction starts in October led by the Nonbuilding segment, November activity modestly fell 2%, according to Dodge Data & Analytics.  However, industry optimism has been supported by the steady recovery in the Nonresidential sector, which registered a 19% increase in starts, buoyed by a 27% rise in the Commercial sector. 

Report highlights include:

  • Public company valuations have improved since the onset of the pandemic as construction demand has rebounded.
  • Capstone’s Aggregates Materials Index has recovered from early pandemic headwinds, with returns in positive territory.
  • M&A activity has slowed compared to the prior year, although public companies have been increasingly active.
  •  Aggregates production has improved from earlier in the year, yet remains lower on a year-over-year basis.

To learn more about the report, please reach out to Managing Director Darin Good.

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Key Contacts

Darin Good

Managing Director