1. Dodge 2014 Construction Outlook Cliff Brewis Senior Director Operations

2. U.S. Macroeconomic Outlook 2 On balance, the pace of economic expansion remains lackluster. GDP Pattern: History Forecast 2010 2011 2012 2013 2014 +2.5% +1.8% +2.8% +1.6% +2.7% Shape of Recovery: Private Sector Dependency Sequestration Government Uncertainty Fed Tapering Improving Local Conditions

3. U.S. Macroeconomic Outlook 3 Employment growth has also been tepid.

4. Construction and Employment 4 The recession impacted industry capacity

5. State Performance: Employment 5 Three unique markets Source: Bureau of Labor Statistics

6. U.S. Construction Market Outlook – 6 The Dodge Momentum Index offers insight on whats ahead.

7. 7 U.S. Construction Market Outlook – Percent Change, 2009-2014, for Total Construction Starts and Major Sectors.. 2013 Value

8. Los Angeles/Orange County: Single Family 8 Continued strong contribution $000.00

9. Los Angeles/Orange County: Multi Residential 9 Continued strength. $000.00

10. Los Angeles/Orange County: Retail 10 Modest recovery $000.00

11. Los Angeles/Orange County: Hotel 11 Occupancy and revenue per room are up $000.00

12. Los Angeles/Orange County: Health 12 We expect consolidations to limit construction $000.00

13. Los Angeles/Orange County: Education 13 Bottomed out, but not recovering yet. $000.00

14. Los Angeles/Orange County: Highways 14 Expected to soften after 2014 $000.00

15. Los Angeles/Orange County: Totals 15 Unquestionable Improvement $000.00

16. QUESTIONS? Cliff Brewis Senior Director Operations McGraw-Hill Construction/Dodge 510.566.0913 Cliff.brewis@mhfi.com 16