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2013 Outlook forU.S. Construction

July 2013

Cliff Brewis Senior Director Operations McGraw Hill Construction

McGraw Hill Construction

2 McGraw Hill Construction Confidential. All information presented @ McGraw Hill Construction, 2013. All rights reserved.

The pace of economic expansion remains lackluster.

GDP Pattern:

History Forecast 2009 2010 2011 2012 2013

-3.1% +2.4% +1.8% +2.2% +2.1%

Shape of Recovery:• Reliance on Private sector• Impact of reliance on private sector• Sequestration• Fed Tapering

U.S. Macroeconomic Picture

California

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2010 2011 2012 2013

EDUC $ 5,639,165 $ 4,382,107 $ 3,252,202 $ 3,284,868

-22.3% -25.8% 1.0%

HEALTH $ 3,665,282 $ 2,950,105 $ 2,677,585 $ 2,955,916

-19.5% -9.2% 10.4%

HIGHWAY $ 3,642,359 $ 3,580,204 $ 3,743,907 $ 3,154,786

-1.7% 4.6% -15.7%

HOTEL $ 158,101 $ 185,736 $ 435,860 $ 497,646

17.5% 134.7% 14.2%

MFG $ 257,108 $ 287,846 $ 604,795 $ 838,565

12.0% 110.1% 38.7%

MULTI RES $ 1,657,565 $ 2,559,982 $ 3,027,578 $ 3,455,532

54.4% 18.3% 14.1%

OFFICE $ 957,899 $ 994,906 $ 1,170,144 $ 1,281,655

3.9% 17.6% 9.5%

ONEFAM $ 7,183,462 $ 6,635,083 $ 8,285,845 $ 10,463,240

-7.6% 24.9% 26.3%

RETAIL $ 941,289 $ 961,767 $ 1,089,085 $ 1,433,973

2.2% 13.2% 31.7%

WARENM $ 221,710 $ 322,985 $ 426,259 $ 591,942

45.7% 32.0% 38.9%

WATER $ 1,693,518 $ 1,285,197 $ 1,053,156 $ 1,221,494

-24.1% -18.1% 16.0%

TOTAL $ 42,223,236 $ 46,117,744 $ 39,859,761 $ 42,127,681

9.2% -13.6% 5.7%

Questions?Cliff Brewis

Senior Director Operations

McGraw-Hill Construction/Dodge

(510) 566 – 0913

Cliff.brewis@mhfi.com

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