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CURRENT ECONOMIC CONDITIONS
12 Months Ended
Dec. 31, 2016
CURRENT ECONOMIC CONDITIONS  
CURRENT ECONOMIC CONDITIONS

11. CURRENT ECONOMIC CONDITIONS

 

Construction activity along the Southern Front Range of Colorado, around Colorado Springs, exhibited modest and thus far sustained improvement over the past two years. Construction activity in the Pueblo market has shown some improvement in the current year as well. Residential construction is expected to remain below prior, more robust periods, however commercial construction is improving. A new street tax passed in Colorado Springs is expected to spur some municipal projects over the next five years. Economic growth in Southern Colorado continues to lag behind the growth experienced in the Denver area. Although pricing improved in the CACS segment during 2016, bidding on jobs has been and is expected to remain highly competitive. Further improvement in the CACS segment will require sustained improvement in the Colorado Springs and Pueblo construction markets and the ability to maintain or enhance ready-mix concrete prices especially in response to any increases in cement and/or fuel costs that may occur.

 

The markets for products manufactured or fabricated by the Heating and Cooling segment are expected to remain somewhat strong mainly due to anticipated continuation of construction spending in the lodging industry. The markets for the Evaporative Cooling and Door segments are expected to stay fairly constant. As has historically been the case, sales of all segments, other than the Door segment, are influenced by weather conditions.