Concrete Business Looking Solid Says Summit Materials CEO

Shares of Summit Materials have gained ten percent so far in 2016, and the company's CEO says demand looks solid for the months ahead.
Author:
Publish date:

Shares of Summit Materials  (SUM) - Get Report  have gained 10 percent so far in 2016, and the concrete supplier's CEO Tom Hill says demand looks solid for the months ahead. 'We are in the early innings of a construction market recovery,' said Hill. 'We are an acquisition driven company and the deal flow has been very good.' Hill says residential construction, which drives the concrete business, is on the upswing. He noted that the Portland Cement Association (PCA) forecasts total housing starts to accelerate to 1.53 million in the United States by 2019, 38 percent higher than in 2015. Nonresidential construction spending has also begun to bounce back, in his view. In 2015, it rose 8.7 percent, after averaging minus 0.6 percent annual growth since the recession. TheStreet's Gregg Greenberg reports from New York