Cliff BrewisSenior Director OperationsMcGraw-Hill Construction

GDP Pattern: History Forecast 2009 2010 2011 2012 2013 -3.1% +2.4% +1.8% +2.1% +2.2%

U.S. Macroeconomic Outlook Continued sluggish recovery…

Real GDP Growth - Quarterly Annualized Percent Change

-10

-8

-6

-4

-2

0

2

4

6

05 06 07 08 09 10 11 12 13

'12 Q2+1.3%

Contribution from Housing

Reliance on Private Work

Deficit/Restrictive

Demand/Employment

Sequestration

Europe

Unemployment by State Recovery varied across the country

3

U.S. Residential – Single Family HousingAfter stalling in 2011, construction has picked up 2012.

549

435 446 413510

610

-41% -21% +2% -7% +24% +20% 2008 2009 2010 2011 2012 2013

Single Family Housing Thousands of Dwelling Units

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

88 90 92 94 96 98 00 02 04 06 08 10 12 14

S&P Case-Shiller Home Price Index 20-Metro Composite, Indexed Jan 2000=100

100

120

140

160

180

200

220

01 02 03 04 05 06 07 08 09 10 11 12 13

Supply of Single Family Homes Number of Months, New Homes

0

2

4

6

8

10

12

14

90 92 94 96 98 00 02 04 06 08 10 12

LA/Orange Co.: Single Family

‘$000.00

LA/Orange Co.: Multi Family

‘$000.00

LA/Orange Co.: Retail

7‘$000.00

LA/Orange Co.: Office

8‘$000.00

LA/Orange Co.: Education

‘$000.00

LA/Orange Co.: Healthcare

‘$000.00

LA/Orange Co.: Highways

‘$000.00

LA/Orange Co.: 2007 2008 2009 2010 2011 2012 2013

MULTI FAM $2,713,135 $1,755,974 $341,702 $488,783 $1,018,112 $1,590,132 $1,506,383

-35.28% -80.54% 43.04% 108.30% 56.18% -5.27%

EDUC $1,928,343 $3,255,471 $1,183,684 $2,008,495 $1,183,432 $1,132,773 $889,577

68.82% -63.64% 69.68% -41.08% -4.28% -21.47%

HEALTH $393,261 $384,757 $1,084,142 $331,297 $713,891 $356,598 $631,064

-2.16% 181.77% -69.44% 115.48% -50.05% 76.97%

HOTEL $746,149 $168,785 $64,279 $41,917 $43,758 $252,245 $112,091

-77.38% -61.92% -34.79% 4.39% 476.45% -55.56%

MFG $80,485 $45,374 $2,609 $90,864 $12,220 $2,835 $59,113

-43.62% -94.25% 3382.71% -86.55% -76.80% 1984.76%

OFFICE $766,938 $430,160 $322,480 $187,487 $133,715 $245,153 $188,148

-43.91% -25.03% -41.86% -28.68% 83.34% -23.25%

ONEFAM $2,540,555 $1,480,877 $1,267,419 $1,496,213 $1,475,596 $1,838,581 $2,398,297

-41.71% -14.41% 18.05% -1.38% 24.60% 30.44%

PUB $112,603 $170,393 $110,549 $104,727 $358,489 $145,157 $174,628

51.32% -35.12% -5.27% 242.31% -59.51% 20.30%

RETAIL $662,245 $740,580 $291,767 $330,954 $332,364 $401,073 $421,205

11.83% -60.60% 13.43% 0.43% 20.67% 5.02%

HIGHWAY $801,558 $771,075 $1,051,431 $986,688 $984,586 $962,789 $726,739

-3.80% 36.36% -6.16% -0.21% -2.21% -24.52%

WATER $269,706 $551,484 $361,904 $260,898 $305,950 $264,444 $321,314

104.48% -34.38% -27.91% 17.27% -13.57% 21.51%

TOTAL $15,556,461 $13,251,992 $9,064,543 $10,203,634 $10,167,487 $11,264,072 $11,903,603

-14.81% -31.60% 12.57% -0.35% 10.79% 5.68%

Questions?Cliff BrewisSenior Director OperationsMcGraw-Hill Construction/Dodge510 – 566 – 0913Cliff_brewis@mcgraw-hill.com