Uncle Larry

7 Ways to Profit from Asphalt and Highway Construction

I have followed the concrete and asphalt companies for several years, investing in Florida Rock, Vulcan Materials and Astec. Vulcan Materials by the way, got its start by grinding up the slag from iron production and using it as an additive in asphalt and concrete block.
Asphalt is a cheap source for paving material but it lacks the durability of concrete and it will never fully replace concrete. I will keep my concrete driveway, thank you. But concrete requires a lot of limestone to be turned into cement and this stone is not found all over the world.
Still, I am very impressed with paving equipment and methods, like Astec and with Astec's entry into lightweight gas drilling and pipeline trenching equipment, I feel this has a better future. Their production backlog is down at the moment but I expect to see added demand before the end of the year.
If you do not know much about asphalt get their investor's kit because it has a lot of great educational material about this product.