Construction
The Government's Efforts to Transform Road Materials for Climate Change
2024-12-01
Combating climate change is a global challenge that requires innovative solutions. One such solution lies in the use of greener asphalt, steel, and concrete for roads. A new federal highway grant program is aiming to achieve just that, providing billions of dollars to states and a companion agency initiative to issue emissions labels for transportation materials.

Key Initiatives and Their Impact

The Federal Highway Administration recently awarded $1.19 billion in grants to nearly 40 state transportation departments. This funding will help these departments launch purchasing programs that require the use of low carbon transportation materials instead of traditional construction inputs. The federal government defines low carbon transportation materials as those with minimal greenhouse gas emissions throughout their entire life cycle.Acting Federal Highway Administrator Kristin White emphasized the importance of materials with a lower carbon footprint in modernizing the transportation sector to fight climate change. These federal investments in the Low Carbon Transportation Material Grants Program are part of the Inflation Reduction Act.An FHWA fact sheet highlights that about 11% of GHG emissions from the infrastructure industry result from embodied carbon in construction materials. Traditionally, these materials have significant embodied carbon emissions due to energy-intensive processes.

States Receiving Green Transportation Material Grants

Several states received large grants under this program. California, Colorado, Delaware, Iowa, Idaho, Illinois, Indiana, Kansas, Kentucky, Louisiana, Massachusetts, Maryland, Michigan, Minnesota, Missouri, Montana, North Carolina, North Dakota, Nevada, New York, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, Tennessee, Virginia, Washington, West Virginia, and Wisconsin each received $31.9 million.Other states with varying distributions include New Mexico ($29.8 million), Hawaii ($28.9 million), New Jersey ($27.8 million), Arizona ($27 million), Mississippi ($26.6 million), and Vermont ($14.5 million).U.S. Rep. Raúl M. Grijalva supported the FHWA's grant, noting its importance in reducing pollution and mitigating climate change. He will continue to advocate for such programs.In Colorado, lawmakers enacted legislation to ensure the use of greener state transportation materials. The "Global Warming Potential For Public Project Materials" legislation requires contractors to submit an environmental product declaration for eligible materials.Iowa plans to incorporate low carbon transportation construction materials into its transportation infrastructure design, as outlined in its 2024 Carbon Reduction Strategy.U.S. Rep. Sharice Davids welcomed the federal funding in Kansas, emphasizing its role in creating jobs and strengthening the economy.Michigan will use the grant to create procedures for including and verifying low-carbon materials. It also aims to incentivize contractors as best practices are established. MDOT officials will focus on lowering emissions in concrete and asphalt materials and create an emissions rating scale.

EPA's New Labels for Highway Construction Materials

The U.S. Environmental Protection Agency launched a new label program in August to assist buyers in making greener choices. The goal is to create labels similar to nutrition labels on food to identify green construction materials.On November 12, EPA began offering advisory support to manufacturers on developing Environmental Product Declarations for construction materials.These federal and state government efforts are in the early stages of development. By using their powers, agencies are seeking to bring about changes in the marketplace for transportation materials. Only time will tell the full impact of these efforts on climate change and the financial outcomes for businesses.
Construction of Wawa, Arby’s, Popeyes in Union County: Progress Update
2024-11-30
LEWISBURG is witnessing the steady advancement of three businesses coming to Kelly Township. According to township officials, the construction is on track as expected. Wawa is in the process of building at the former Just Lite It Fireworks location on Westbranch Highway. Meanwhile, Arby’s and Popeyes, sharing a single building, are set to be located between Hampton Inn and Sheetz along Route 15.

Witnessing the Growth of Kelly Township's Business Landscape

Wawa's Construction in Kelly Township

Wawa announced its plans to build new stores in Central Pennsylvania markets, including Lewisburg and Danville, in April. A groundbreaking ceremony marked the official start of construction at its first store in Dauphin County. Over the next five years, Wawa aims to have up to 40 stores in the region, opening approximately five to seven a year. Each store requires an investment of around $7 million and will employ an average of 140 contractors and local partners. Once open, each store will have an average of 35 associates, creating 1,400 new long-term jobs in Central Pennsylvania. In Kelly Township, Wawa's construction is visible with equipment and a fence on the site, and it is expected to have a spring opening.

Arby’s and Popeyes' Construction in Kelly Township

The construction of Arby’s and Popeyes is progressing, although a specific opening date has not been set. An unfinished structure stands on the lot, and recent paving work has been ongoing. Chairman David Hassenplug of the Kelly Township Board of Supervisors is excited about the projects and sees signs of on-site construction. There have been rumors of Arby’s pulling out, but Central Keystone-COG has received no such notification. Access to the site will be through AJK Boulevard and International Drive.
See More
Return on Capital Trends Suggest Trouble for KEPCO Engineering(Note: This title focuses on the return on capital trends and their implications for the company without using specific formatting or prohibited words.)
2024-12-01
Financial metrics play a crucial role in assessing a company's health and trajectory. In this article, we delve deep into the world of ROCE and its implications for companies like KEPCO Engineering & Construction Company. Let's explore how these metrics can reveal whether a business is maturing or facing a decline.

Uncover the Hidden Truths of Company Financials

What Is Return On Capital Employed (ROCE)?

ROCE is a vital metric that measures a company's ability to generate pre-tax profits from the capital employed in its operations. For KEPCO Engineering & Construction Company, the calculation is as follows:Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets – Current Liabilities)For instance, based on the trailing twelve months to September 2024, it is calculated as 0.054 = ₩30b ÷ (₩874b – ₩318b). This indicates that KEPCO Engineering & Construction Company has an ROCE of 5.4%, which is in line with the industry average but still relatively low on its own.

What Can We Tell From KEPCO Engineering & Construction Company’s ROCE Trend?

We are concerned about the trend of returns on capital at KEPCO Engineering & Construction Company. About four years ago, the returns on capital were a healthy 9.5%, but they have now significantly dropped. Meanwhile, the business is using approximately the same amount of capital as it did back then. Companies with such attributes are often mature and facing competition-related margin pressure. If these trends persist, it is unlikely that KEPCO Engineering & Construction Company will become a multi-bagger.On a side note, the company's current liabilities have increased over the past four years to 36% of total assets, which has distorted the ROCE to some extent. Without this increase, the ROCE could be even lower. Although the ratio is not currently too high, it is still worth monitoring as a high ratio could bring new risks.

The Bottom Line On KEPCO Engineering & Construction Company’s ROCE

A declining return on the same amount of capital is generally not a sign of a growth stock. Despite this, the stock has gained an astonishing 282% over the past five years, suggesting that investors are highly optimistic. However, the current underlying trends do not bode well for long-term performance. Unless these trends reverse, it might be time to look elsewhere.While KEPCO Engineering & Construction Company may not have the highest returns currently, we have compiled a list of companies that earn more than 25% return on equity. You can access this free list here.Valuation is a complex process, but we aim to simplify it. Discover if KEPCO Engineering & Construction Company is undervalued or overvalued with our detailed analysis, including fair value estimates, potential risks, dividends, insider trades, and its financial condition. Access our free analysis now.If you have feedback or concerns about this article, please get in touch with us directly at editorial-team (at) simplywallst.com. Our analysis is based on historical data and analyst forecasts using an unbiased methodology and is not intended to be financial advice. It does not recommend buying or selling any stock and does not consider your individual objectives or financial situation. We focus on long-term analysis driven by fundamental data and may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
See More