Adam Thalhimer: Hey. On the demand side, I guess I wanted to hit that as well. There’s a lot of angst out there about just private construction demand in general. Are you guys seeing any incremental weakness or strength there?
Thomas Hill: Well, I think it depends on which part of it you’re talking about, and I’ll take them a piece at a time. We’re seeing – on the non-res side, you’ve got weakness in warehouses and kind of traditional light non-res. That being said, the warehouses, we – if you look at starts, they are – the fall is decelerating. It’s getting better as you look at starts on a short-term basis. So hopefully, that will get better. You’ve got strength in large manufacturing projects, which we’ve got 11 of those big projects, and we’re shipping on them now and I think more to come. So it’s too early to call whether it’s getting better or getting worse, but that’s kind of how we call it for – on the non-res side. On highways – excuse me, on housing, I would tell you the weakness is in multifamily and continues that. I think it doesn’t last too long, we’ll be past that, I think, 2025. And then single-family res is recovering, and I think recovering with some momentum.
Adam Thalhimer: Sounds pretty good. Thanks, Tom.
Thomas Hill: Thank you.
Operator: We’ll go now to Phil Ng with Jefferies.
Thomas Hill: Hi, Phil.
Mary Andrews Carlisle: Good morning, Phil.
Philip Ng: Hey, guys. Congrats on a really strong quarter.
Thomas Hill: Thank you.
Philip Ng: I had a question. I mean, a competitor of yours has just closed on a deal in the Southeast, and they’ve already announced price increases for midyears in those markets and called out how pricing there is for us below their corporate average. I’ve always thought that the Southeast is actually a pretty good pricing market. Do you see that dynamic improving the backdrop on pricing, anything on the structure side of things? And then similarly, California, I think pricing still kind of below what that market probably should warrant just given the cost and demand profile. Any thoughts on the momentum on pricing around California as well?
Thomas Hill: Yes, I think we’ve got to be thoughtful when we call out pricing on individual markets. But that being said, the Southeast is very good pricing, some of the best we have. And I think that if you look at the western part of the United States, I think we’re seeing marked improvement in pricing, and we’ll continue – that momentum will continue.
Philip Ng: Okay. Appreciate the color.
Operator: And now we’ll go to Angel Castillo with Morgan Stanley.
Thomas Hill: Good morning.
Mary Andrews Carlisle: Good morning.
Angel Castillo: Good morning. Thanks for taking my question. Just wanted to maybe expand a little bit on some of the dynamics. First, just a quick clarifier. For pricing, is the assumption still 10% to 12%, given the kind of unchanged topline? And then you mentioned kind of no impact from election year. Could you maybe talk about some of the other dynamics that are at play here in terms of the weakness you’re seeing in non-resi and just interest rate environment and kind of some of those challenges? Is that having any kind of impact on your midyears? It sounds like the discussions there have been quite constructive. So just any kind of color there would be helpful.
Thomas Hill: Yes. I think you’re seeing improvement. We’re seeing improvement in single-family, which is always helpful. And the most important thing is that you see growth in public demand, which is still visible and it is a very good foundation for pricing. I don’t know that interest rates have had a big impact on pricing. Obviously, they’ll have – they’ve had impacts on demand and volumes. But I think – so I think that – and I don’t think that the election year has had any impact on pricing dynamics. So I think that the fact that we’ve got strong, very visible public demand for a long time is good. I think you’ve got some improvement in res. All of that is helping the pricing dynamics. And I think we feel pretty good about a midyear at this point.
Angel Castillo: Very helpful. Thank you.
Thomas Hill: Thank you.
Operator: We’ll go now to Michael Dudas with Vertical Research.
Thomas Hill: Good morning.
Michael Dudas: Good morning. Mary Andrews, Mark, Tom.
Mary Andrews Carlisle: Good morning.
Michael Dudas: So it’s an interesting highlight on 67% of your of the IIJA dollars are going to the Vulcan states. So you can talk a little bit about what states does that matching up with some of the DOT budgets in some of your important states? And what it may be throughout the business, what regions or states maybe are lagging a bit that may have some opportunity to catch up as we move into the next several quarters?
Thomas Hill: Well, I think a big part of that is you’ve got the big DOTs, Caltrans and TxDOT and Georgia DOT and Virginia. Obviously, Tennessee, obviously, have excellent funding, both state and local. I think that probably the most – the best – DOT is best at getting money through at this point because they started earlier with their own funding with Texas. Georgia had some struggles, but I think is catching up with that. So I think Caltrans is doing a good job getting their money in. Illinois, I think, has struggled getting some of their funding out. So that’s how I call it. But I think they’re all plugging at it, and I think they’re all getting better at it. It is coming through with improvement in lettings. I think that all of them are going through the 2025 budgeting right now, a little too early to call, but I don’t see them going down.
