Cliff Brewis Vice President Operations Dodge Data & Analytics

U.S. Macroeconomic Outlook The U.S. economy has performed in a conservative range since the recession, will trump change that? GDP Pattern: History Forecast 2013 2014 2015 2016 2017 +1.7% +2.4% +2.6% +1.5% +2.4% Trump Impact: Stimulate the Economy: Tax Cuts Deregulation Infrastructure Area of Concern : Trade War: Mexico & China Budget Deficit BOOKEND SLIDE

U.S. Macroeconomic Outlook For consumption to continue employment growth should slow gradually, coupled with an increase in wages. Jobs lost from Feb.’08 to Feb. ’10: 8.7 Million. Job creation so far in 2010-2016: 15.0 million. Unemployment rate at 5.0% Job growth. in Jan.’13- Dec. ’13: 193,000 /mo. in Jan.‘14- Dec. ‘14: 251,000 /mo. in Jan.’15- Dec. ’15: 229,000 /mo. in Jan.’16- Sept.’16: 178,000 /mo. BOOKEND SLIDE

U.S. Macroeconomic Outlook Increased Federal spending already locked in Fixing America’s Surface Transportation (FAST) Act Enacted on December 4. $305 billion over a five-year period – highways, $230 bil.; public transit, $61 bill., Amtrak, $10 bil., safety programs, $5 bil. Fiscal 2016 Federal Appropriations Raises federal-aid obligation ceiling 5% to $42.4 billion Raises Federal Transit Admin.’s budget 8% to $11.8 billion. FAA Airport Improvement grants held at $3.4 billion GSA’s construction account tripled to $1.6 billion VA major construction account doubled to $1.2 billion Corps of Engineers civil works acct. raised 10% to $6 billion. Water Resources Development Act ($10.3 bil. +) Infrastructure plans BOOKEND SLIDE

U.S. Construction – Dodge Momentum Index The Dodge Momentum Index - a measure of projects in planning - offers insight on what lies ahead. The Dodge Momentum Index (DMI) tracks the first (or initial) reports for nonresidential building projects at the planning stage. The DMI bottomed out in July 2011, and has been trending upward since then. The initial increases were shown by the commercial component – leveled off in 2014, Then renewed growth in 2015-16. Institutional building picked up in 2013, then leveled off in 2014-15, renewed growth in 2016, Strong increases in 2016 for both commercial and institutional components through August. BOOKEND SLIDE

U.S. Single Family Housing Single family housing construction is failing behind in meeting demand from households formations. BOOKEND SLIDE

Oregon: Single Family Housing Struggles at entry level, softening at mid and higher levels BOOKEND SLIDE

Oregon: Multifamily Housing Showing signs of peaking at a high level. BOOKEND SLIDE

U.S. Multifamily Housing Top 10 Metropolitan Areas - 9 months year-to-date, 2016 vs. 2015. Based on dollars. BOOKEND SLIDE

Oregon: Office Buildings Strength of Technology along the west coast BOOKEND SLIDE

U.S. Commercial – Office Buildings Top 10 Metropolitan Areas - 9 months year-to-date, 2016 vs. 2015. Based on dollars. BOOKEND SLIDE

U.S. Commercial – Office Buildings Other office characteristics – office high-rise percent and alterations. BOOKEND SLIDE

Oregon: Hotels Often cyclical, but revenue per room remains a good fundamental BOOKEND SLIDE

Oregon: Warehouse & Retail Related sectors impacted by new economic circumstances. Warehouse Retail BOOKEND SLIDE

Oregon: Education Well into recovery mode BOOKEND SLIDE

U.S. Institutional – Educational Buildings K-12 school construction larger and more volatile than colleges/universities. Much of the recent upturn so far has come from K-12 projects In 2015, sq. ft. for K-12 school construction was 4.0 times the size of Colleges/Universities/ Community Colleges. In 2015, dollars for K-12 school construction were 2.2 times the size of Colleges/Universities/ Community Colleges. BOOKEND SLIDE

U.S. Institutional – Educational Buildings Top 10 States K-12 School Construction - 9 months year-to-date, 2016 vs. 2015. Based on dollars. BOOKEND SLIDE

Oregon: Healthcare Continued uncertainty….. BOOKEND SLIDE

U.S. Institutional – Healthcare Facilities Top 10 States – 9 months year-to-date, 2016 vs. 2015. Based on dollars. BOOKEND SLIDE

Infrastructure Considerations Potential for Consensus but framework is not clear Current Status Highway Trust Fund Operating at a Deficit Consensus: Infrastructure Under funded Trump Plan $1 Trillion program $170 Billion Private Equity 80+% Tax Reductions Reduced Lending Costs Revenue from Toll Roads Offset by Payroll Taxes Local Funding 75% of Current funding from State Impact of Tax Plan on Muni Bonds BOOKEND SLIDE

Oregon: Highways Infrastructure is gaining momentum politically. BOOKEND SLIDE

U.S. Public Works – Highways and Bridges Top 10 States – 9 Months year-to-date, 2016 vs. 2015. Based on dollars. BOOKEND SLIDE

Oregon: Total Construction Thousands of Dollars BOOKEND SLIDE

U.S. Construction Market Outlook Points of Perspective BOOKEND SLIDE

Cliff Brewis Vice President Operations Dodge Data & Analytics