Heading into the New Year

Heading into the new year, a Commercial Construction Index survey showed more than 50 percent of contractors were confident 2020 would “provide the necessary business opportunities to yield another strong year.” At Kansas Asphalt, we share this optimism.

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In 2019, we enjoyed healthy growth, but our optimism is not based solely on our overall revenue growth last year. Rather, it is based in large part on the fact we saw growth across several different targeted industry segments we have long served. The combination of overall growth and health across industry segments bodes well for the coming months.

“Although retail still remains the industry leader for parking lot remediation for Kansas Asphalt, transportation and healthcare are quickly building markets with an abundance of opportunities seized in 2019,” Kansas Asphalt Construction Management Executive Vice President Pam Peckinpaugh said.

A quick review of a few of the top-line numbers from 2019 supports our bullish outlook for 2020:

1. Year-over-year total revenue increased 39 percent across our top six industry segments (food service, healthcare, manufacturing, real estate, retail, and transportation).
2. Year-over-year revenue more than doubled in the healthcare segment in 2019.
3. Retail, which represents by far our largest segment, continued to show significant growth in 2019. Revenue increased 50.7 percent in that segment.
4. And bucking an overall market trend, Kansas Asphalt also enjoyed growth in the food service segment.

“Although market trends showed a slight decline in food service brick and mortar locations in 2019, we experienced no such slow down within this industry,” Peckinpaugh said. “Food service revenue represented more than 7 percent of our company’s total 2019 revenue, an increase of two percentage points even as we saw growth across other segments."

Macro-economic forces and trends, of course, can and do change. Like all contractors, Kansas Asphalt is subject to those changes. We remain confident that the unparalleled service and value we deliver across a diverse mix of industry segments, markets, and localities has positioned us for continued growth.

Indeed, from the Carolinas and Atlanta, to Ohio to Texas, the Midwest and California, Kansas Asphalt is in growth mode.