Gencor Industries, is watching the budget talks in Washington and wondering if, and when, it might have the chance to put its infrastructure repair expertise back to work. The company manufacturers the production of highway construction materials, synthetic fuels, and environmental control machinery.
Performance at the company has been steady, but holding, in recent years as congressional appropriators skipped over funding a highway-construction bill. Republican wins in the U.S. House elections last November left an environment more conducive to cuts, rather than spending — including on infrastructure projects such as highway repair.
E. J. Elliott, Gencor’s Chairman said, “The current absence of the traditional multi-year highway bill coupled with the depressed economy have reduced sales opportunities, and those that do arise continue to be subject to severe competition and lower margins.”
Gencor’s stock has traded between $6.75 and $8.00 for more than a year now, well off its pre-recession high of $32.88. Digging itself out of this lull will most certainly require the federal government passing a highway bill, allotting significant money to repairing the nation’s interstate system.
Gencor also has plans for growth outside the government sector.
“Longer term, we believe our strategy of continuing to invest in product engineering and development and focusing on delivering high quality products and superior customer service will position us well for 2011 and beyond. In the meantime we continue to evaluate opportunities for expansion through organic growth and acquisitions,” Elliott said.
Gencor, and other companies waiting on highway contracts, may not have to wait too long. The U.S. House Transportation and Infrastructure Committee is reportedly looking at moving a new, six-year highway appropriations bill out of committee some time this spring.
“The current extension of the last law runs through the fiscal year, which ends September 30th,” said Justin Harclerode, communications director for the committee. “The hearing process is ending soon, and the committee hopes to start drafting soon.”
— Gary Cassady