2 Stocks to Benefit from Industrial & Public Spending
TL/DR –
The Concrete & Aggregates industry is expected to remain stable in 2025, driven by public sector investment and industrial activity, despite private demand remaining uneven. The industry is benefiting from funding from the Infrastructure Investment and Jobs Act (IIJA) and state-level initiatives that drive highway, bridge, and public works activity. Industry challenges include weather-related disruptions, labor costs, and broader economic uncertainty, but the industry has shown resilience through disciplined pricing and cost management.
A cautiously optimistic future for the Zacks Building Products – Concrete & Aggregates industry
2025 is looking bright for the Zacks Building Products – Concrete & Aggregates industry. Anchored by strong infrastructure demand, the industry is progressing steadily. The Infrastructure Investment and Jobs Act (IIJA) and state-level initiatives continue to drive highway, bridge, and public works activity, supplemented by an expanding industrial sector led by data center expansion, semiconductor manufacturing, and new energy generation projects. While the sector faces challenges from weather disruptions, labor costs, and economic uncertainty, its resilience is evident in its disciplined approach to pricing and cost management.
At the forefront of the industry, we see industry leaders such as Vulcan Materials VMC and Martin Marietta Materials MLM benefiting from the consistent public sector investment alongside industrial activity, despite uneven private demand.
An Overview of the Industry
The Zacks Building Products – Concrete & Aggregates industry is made up of manufacturers, distributors, and sellers of construction materials like aggregates and concrete. The industry players are also involved in designing, engineering, manufacturing, marketing, and installation of external building products for commercial, residential, and repair and remodel markets in domestic as well as international markets.
3 Factors Influencing the Concrete & Aggregates Industry Future
Infrastructure Revival: The Infrastructure Investment and Jobs Act, the Creating Helpful Incentives to Produce Semiconductors and Science Act, and the Inflation Reduction Act collectively signify a substantial commitment to bolstering American competitiveness. These laws are revitalizing American infrastructure, expediting the shift toward a sustainable economy, and fortifying the domestic semiconductor sector, giving the construction companies a solid foundation for growth.
Mergers & Focus on Operational Efficiency: The industry has seen an increase in acquisitions to enhance domestic and international portfolios. Companies are also focusing on reducing controllable costs and maximizing operating efficiency across business lines to generate higher earnings and cash flows.
Fluctuations in Input Prices, Weather Challenges & Labor Shortages: The industry is struggling with escalating material expenses, a shortage of skilled laborers, and rising wage costs. Weather-related risks that affect production schedules and profitability are also challenges. These impediments may bump up costs and mar the industry participants’ profits.
Zacks Industry Rank Reflects Strong Prospects
The Zacks Building Products – Concrete & Aggregates industry is a six-stock group within the broader Zacks Construction sector. The industry currently carries a Zacks Industry Rank #98, which places it in the top 40% of more than 250 Zacks industries. The industry’s positioning in the top 50% of the Zacks-ranked industries is a result of a higher earnings outlook for the constituent companies in aggregate. Since June 2025, the industry’s earnings estimates for 2025 have increased to $2.18 per share from $2.09.
Concrete & Aggregates Stocks to Monitor
Two stocks from the Zacks Concrete & Aggregates universe show promising growth potential. These are Vulcan Materials Company and Martin Marietta. Vulcan Materials Company, a Zacks Rank #3 (Hold) stock, has gained 18.7% over the past year. Also, the 2025 earnings per share (EPS) estimate depicts 12% year-over-year growth. Meanwhile, Martin Marietta, also a Zacks Rank #3 stock, has gained 12.8% over the past year, with an estimated 7.1% increase in revenue for 2025.
For the latest recommendations from Zacks Investment Research, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
—
Read More US Economic News