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Vulcan is well-positioned to benefit from infrastructure spending, but near-term headwinds persist
minsta

Vulcan is well-positioned to benefit from infrastructure spending, but near-term headwinds persist

Aggregates producer Vulcan Materials is well-positioned to benefit from the ongoing recovery in U.S. construction spending. We expect demand growth to strengthen for the public sector and modest growth for the private sector. Accounting for approximately 40% of shipments, public sector demand is generally more stable and projects, primarily highway construction, require more aggregate per dollar of spending. Federal funding power has weakened as improvements in vehicle mileage and inflation have diminished the purchasing power of the $0.18 per gallon gas tax, unchanged since 1993. FAST Act, passed in December 2015, provided stability and certainty of short-term funding, but did not solve the problem. the gas tax, still falling. However, long-term federal funding was passed in late 2021, totaling $1.2 trillion.

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