Supplier Insider is a weekly roundup of the latest news and insights relevant to construction suppliers.
Concrete and aggregates industry to benefit from increase in construction spending
Research and investment company Zacks reported that the concrete and aggregates industry is expected to benefit from the increase in construction activity, including the planned upgrade of the country’s highways, roads, and bridges that are part of the proposed $2-trillion infrastructure plan. Zacks
- Growth in the public construction sector has boosted the demand for concretes and aggregates, according to Zacks. A 9.2% year-over-year increase was observed as the US public construction spending reached $62.2 billion in just the first three months of 2019.
- Companies are also focusing on “reducing controllable costs and maximizing operating efficiency across business lines to generate higher earnings and cash flow,” Zacks noted in their report.
- Issues on labor shortage, wage increases, and transportation expenses still plague the industry and affect their operations. Weather-related risks also continue to be a problem for the industry’s outlook, as excessive rainfall and flooding affect timely shipments and supply delivery.
Thermal insulation market value to reach $36 billion by 2026
Increase in government focus on energy efficiency will help boost the building thermal insulation market value from 25.75 billion in 2018 to 36.90 billion in 2026. Stock News Magazine
- Forecasts say that there will be an increase in demand for thermal insulation in construction buildings due to the government drive in reducing greenhouse gases emissions.
- Thermal insulation helps reduce energy consumption by preventing heat from accumulating in a room and therefore reducing user reliance on air conditioning systems. The heat does not get absorbed in to the materials of the room and instead gets reflected back.
- The demand for thermal insulation may be high but market constraints still exist, including the fluctuating prices of raw materials as well as the high capital costs of manufacturing insulation equipment.
Garland Industries acquires Merchant & Evans
Merchant & Evans, Inc. a metal roof systems manufacturer, has been acquired by Garland Industries, Inc., a group of companies that primarily specializes in waterproofing solutions for industrial, residential, and commercial projects. Commercial Construction Renovation
- “This merger will… allow us to combine our expertise and resources to continue developing innovative and market-changing technology,” said Joe Orlando, vice president of Garland Industries.
- Some of Merchant & Evans’ products include metal roof systems and wall, fascia and soffit profiles. They have been in offering diverse products to customers since 1866.
- Garland Industries meanwhile consists of 18 companies that focus on developing and manufacturing building materials, as well as delivering contracting and engineering services.