Gencor Industries, Inc. (GENC): PESTLE Analysis [Nov-2025 Updated]

You're looking for a clear-eyed view of Gencor Industries, Inc. (GENC) as we head into late 2025, and honestly, the picture is shaped heavily by government spending and compliance costs. The core story for Gencor in 2025 is the $550 billion tailwind from the Infrastructure Investment and Jobs Act (IIJA), which is defintely securing a strong revenue visibility, projected to hit around $102 million this fiscal year. But, as we've seen in the construction equipment space, that opportunity is tempered by the economic reality of high steel prices and the legal burden of stricter EPA and OSHA compliance. You need to know how the political certainty of government contracts stacks up against the technological push for 'warm-mix' asphalt and the persistent labor shortage, so let's dig into the full PESTLE breakdown to map out the near-term risks and clear actions.

Gencor Industries, Inc. (GENC) - PESTLE Analysis: Political factors

Infrastructure Investment and Jobs Act (IIJA) provides a $550 billion new funding pipeline

The single most important political factor for Gencor Industries, Inc. (GENC) is the continued, massive fiscal stimulus from the Infrastructure Investment and Jobs Act (IIJA), also known as the Bipartisan Infrastructure Law (BIL). This act provides $550 billion in new infrastructure spending above baseline levels over five years. For Gencor Industries, Inc., which manufactures asphalt plants and related equipment, the key is the guaranteed transportation funding.

Specifically, the Federal-Aid Highway Program received a total of $303.5 billion in contract authority plus an additional $47.272 billion in general fund appropriations for the FY2022-FY2026 period. This is a direct, multi-year tailwind. For the current Fiscal Year 2025, the IIJA has authorized $61.953 billion in Contract Authority from the Highway Trust Fund alone. Management at Gencor Industries, Inc. has already cited this funding as a structural tailwind supporting steady demand into FY2025.

Here's the quick math on the federal highway funding that directly drives demand for asphalt equipment:

State-level Department of Transportation (DOT) spending cycles are now robustly funded through 2026

The federal IIJA money flows through state Departments of Transportation (DOTs), making state-level spending the immediate driver of Gencor Industries, Inc.'s order flow. The state DOT spending cycles are defintely robustly funded through 2026, translating federal money into shovel-ready projects. As of January 2025, $402 million in IIJA grants had already been obligated, with $134 million outlaid, signaling sustained demand.

This is not an abstract funding promise; it's being executed in major markets. For example, the Florida Department of Transportation's Focus on Fiscal Responsibility Budget for FY 2025-2026 includes a historic investment of $14.8 billion, with $5.7 billion specifically dedicated to highway maintenance and construction. Also, Texas's transportation budget stands at a massive $40.4 billion, a significant increase over prior years. This pipeline provides excellent order visibility for Gencor Industries, Inc. and its customers.

Geopolitical tensions increase pressure for domestic manufacturing and sourcing

Geopolitical tensions, particularly concerning China and critical materials, are forcing a political shift toward domestic manufacturing and supply chain security, which benefits U.S.-based equipment producers like Gencor Industries, Inc. The push for reshoring is accelerating in the heavy equipment sector in 2025.

The challenge, however, is the volatility in input costs. Gencor Industries, Inc. explicitly lists the impact of U.S. government tariff announcements and global conflicts (like those in Ukraine and the Middle East) as a risk factor that could result in higher costs for their products. Tariffs on imported parts are causing domestic manufacturers to pass on rising input costs to clients, which increases equipment prices. This creates a pricing and margin tightrope for the company.

• 82% of manufacturers are actively moving or planning to move factories back to the U.S.
• The IIJA includes 'Buy America' provisions, though asphalt binders and aggregates have an exemption to safeguard state-funded projects.
• The political environment favors companies with strong domestic production capabilities.

Potential for a shift in federal administration post-2024 election introduces regulatory uncertainty

The outcome of the 2024 federal election and the subsequent shift in administration in 2025 introduces a new layer of regulatory and policy uncertainty for the construction sector. While a Republican-led administration is generally expected to favor reduced regulations and tax cuts, it also brings the potential for widespread tariffs.

The construction industry is bracing for potential changes in tax laws, infrastructure spending priorities, and environmental rules. For large projects, the promise of expedited federal permits for energy and other construction projects individually worth more than US$1 billion could accelerate some customer investment decisions. Still, this uncertainty has already caused some commercial builders to delay projects until the post-election outlook became clearer, which can affect the timing of new equipment purchases. You need to model a range of scenarios for tariffs and permitting speed in your financial projections.

Gencor Industries, Inc. (GENC) - PESTLE Analysis: Economic factors

The economic landscape for Gencor Industries, Inc. (GENC) in 2025 is a classic push-pull scenario: massive, government-backed infrastructure demand is pulling revenue up, but persistent raw material inflation is pushing gross margins down. You're seeing strong top-line visibility, but cost management is defintely the key to profit.

Strong backlog driven by IIJA projects, securing revenue visibility into 2026.

The Infrastructure Investment and Jobs Act (IIJA), which allocated $550 billion for roads, bridges, and other infrastructure, remains the primary economic tailwind for Gencor Industries, Inc. This federal funding translates directly into demand for the company's asphalt plants and paving equipment. The backlog, while seasonal, shows this underlying strength.

For instance, the backlog stood at a record high of $56.2 million as of September 2024, which provided critical revenue visibility into the first half of fiscal year 2025. By June 30, 2025, the backlog had drawn down to $26.2 million, a typical seasonal pattern, but the sustained IIJA funding signals a steady pipeline of future orders. The sheer volume of obligated IIJA grants-$402 million as of January 2025-confirms that state and local projects will continue to drive equipment sales through 2026.

Gencor's 2025 fiscal year revenue is projected to reach approximately $102 million, up from the prior year.

Based on the strong demand and order conversion, I project Gencor Industries, Inc.'s full fiscal year 2025 revenue will reach approximately $102 million. Here's the quick math: The company reported net revenue of $96.6 million for the first nine months of FY 2025. Even with a seasonally slower fourth quarter, this puts the company on track for solid year-over-year growth, demonstrating the company's ability to convert its infrastructure-driven demand into sales.

This revenue growth is supported by a robust balance sheet, which gives the company a huge advantage. As of March 31, 2025, Gencor Industries, Inc. held $143.7 million in cash and marketable securities with zero debt. That is a fortress balance sheet, providing the financial flexibility to weather any short-term economic headwinds.

Inflationary pressures on raw materials, especially steel, impacting gross margins.

The biggest near-term risk remains cost inflation (a rise in the price of inputs, like materials and labor) which is squeezing profitability. Manufacturing heavy equipment requires significant steel fabrication, and the construction sector is still grappling with elevated material costs. Discussions of increased tariffs on steel and aluminum in 2025 only compound this pressure.

This reality is reflected in the company's gross margins (the percentage of revenue left after paying for the cost of goods sold). Gross profit margins declined slightly to 29.7% in the second quarter of fiscal year 2025, down from 30.3% in the same period the prior year, primarily due to these increased material costs.

The table below summarizes the key margin and cost dynamics for Gencor Industries, Inc. in the first half of FY 2025:

Interest rate stability in late 2025 supports municipal bond issuance for local projects.

The financing environment for Gencor Industries, Inc.'s customers-state and local governments-is becoming more favorable in the latter half of 2025. The Federal Reserve is signaling a potential shift toward easing interest rates as inflation moderates. This rate stability is crucial because most public infrastructure projects are financed through municipal bonds (debt issued by state and local governments).

Key factors supporting project funding include:

• Municipal bond yields stabilized around 6.06% (taxable equivalent yield for the S&P National AMT-Free Municipal Bond Index) by the end of April 2025.
• Issuance of municipal bonds, which fund these projects, has been high and is expected to remain elevated due to the higher costs of infrastructure (driven by inflation).
• The market for municipal bonds remains 'well bid' and supported by stable Treasury yields in late 2025, ensuring a reliable source of capital for state DOTs and municipalities.

This favorable financing environment means that Gencor Industries, Inc.'s customers are better positioned to fund new equipment purchases and large-scale projects, translating into sustained order flow for the company.

Gencor Industries, Inc. (GENC) - PESTLE Analysis: Social factors

Increasing public demand for faster, less disruptive road construction projects.

The public's tolerance for long-term road closures and traffic disruption is defintely shrinking, so there is immense social pressure on state and local governments to complete infrastructure projects faster. This pressure translates directly into demand for Gencor Industries' (GENC) high-capacity, high-efficiency asphalt plants and paving equipment. We are seeing a massive wave of funding driving this, but the underlying issue is the poor state of the nation's roads, which the American Society of Civil Engineers (ASCE) still graded a dismal D+ in its 2025 Report Card.

Contractors need equipment that can process more material in less time to minimize the construction window. For example, the U.S. Road & Highway Construction Industry is projected to reach an annual revenue of $193.4 billion in 2025, with revenue set to jump by an estimated 2.9% over the year. This surge in volume mandates more efficient machinery. State and local contract awards for highways and bridges totaled $22.2 billion through February 2025, which is a significant increase from the prior year's $18.8 billion for the same period. The only way to execute this volume without paralyzing traffic is through equipment that maximizes throughput and uptime.

Growing labor shortage in skilled trades (welders, technicians) affects Gencor's production capacity.

The skilled labor shortage is a major headwind for both Gencor Industries' manufacturing operations and its customer base-the contractors who buy the equipment. This is a critical social factor because it directly impacts our production capacity and the demand for more automated equipment. The Associated Builders and Contractors (ABC) estimate the U.S. construction sector needs to attract 439,000 net new workers in 2025 just to meet anticipated project demand. That's a huge gap.

For machine builders like Gencor Industries, the problem is acute. A 2025 report found that 79% of machine builders in North America and Europe reported the skills shortage was having a significant or very significant impact on their operations. Here's the quick math: if one-third of machine building companies have up to 11-25% of their vacancies unfilled, Gencor Industries must invest heavily in automation for its own factory floors or face production delays. This shortage is also driving up costs, with construction wages rising approximately 4.4% year-on-year as of early 2025.

The labor crunch for our customers is creating a strong pull for Gencor Industries' more automated and easy-to-operate equipment:

• Requires fewer skilled operators per shift.
• Reduces reliance on highly-paid welders and technicians.
• Mitigates project delays caused by crew shortages.

Focus on worker safety standards drives demand for automated and safer equipment designs.

Worker safety is no longer just a regulatory compliance issue; it's a social expectation and a major risk management priority for contractors. This drives a clear market opportunity for Gencor Industries to design safety features into its new product lines. The global market for Construction Worker Safety technology is projected to grow significantly, from an estimated $3.2 Billion in 2024 to an expected $4.6 Billion by 2030, a CAGR of 6.0%.

Contractors are now looking for equipment that integrates with new safety technology. For instance, new regulations mandate video surveillance systems for construction sites with contracts worth over $5 million, implemented in June 2024. This means Gencor Industries' equipment must be compatible with jobsite Internet of Things (IoT) sensors and Artificial Intelligence (AI) monitoring systems. In fact, industry experts forecast the construction industry to invest over $4 billion in AI-powered safety technology by 2026.

Public support for 'Buy American' provisions influences procurement decisions for government-funded projects.

The 'Buy American' movement, codified in the Build America, Buy America (BABA) Act, is a massive factor for Gencor Industries, given that much of its business relies on federally-funded highway projects. This social and political mandate gives domestic manufacturers a distinct competitive advantage, provided they can meet the stringent new domestic content requirements.

The Federal Highway Administration (FHWA) rescinded its general waiver for manufactured products, effective October 1, 2025. This is a game-changer. For projects obligated on or after this date, manufactured products, including Gencor Industries' asphalt plants and pavers, must have their final assembly occur in the United States.

Furthermore, the domestic content threshold for manufactured products on federally funded projects is increasing:

• Starting in 2025, the domestic content requirement is 65% by component cost.
• This threshold will rise further to 75% in 2029.

This is a clear opportunity for Gencor Industries, a U.S.-based manufacturer, but it also means the company must meticulously audit its own supply chain (Bill of Materials) to ensure every component meets the 65% domestic cost requirement. Honest assessment of component sourcing is key to winning the high-value government contracts that underpin the market's current growth.

Gencor Industries, Inc. (GENC) - PESTLE Analysis: Technological factors

Technology is a core competitive battleground for Gencor Industries, Inc., and the company's product line demonstrates a clear alignment with the industry's twin demands: sustainability and efficiency. The technological landscape in 2025 is defined by a push toward lower-temperature mixes, higher material recycling, and advanced automation to cut fuel costs, which directly impacts the bottom line for Gencor's contractor customers.

Shift toward 'warm-mix' asphalt (WMA) and higher recycled asphalt pavement (RAP) content requires new equipment designs.

The industry's move toward greener practices is a major technological driver. Warm-Mix Asphalt (WMA) allows contractors to produce pavement at temperatures up to 100°F lower than traditional Hot-Mix Asphalt, which dramatically cuts energy consumption. Gencor's technology, such as the Ultrafoam GX2™ warm mix system, is a direct response, using a simple steam injection process to achieve the necessary viscosity. This WMA technology is proven to reduce fuel use by up to 20% compared to traditional methods, giving Gencor a strong selling point as energy costs remain volatile.

Also, the push for higher Recycled Asphalt Pavement (RAP) content is non-negotiable. Gencor's plants are engineered for this, featuring dedicated Recycled Asphalt Systems (RAP Systems). The Gencor® RAP Lump Breaker, for example, is designed to process RAP material without crushing the aggregate, which is critical for maintaining mix quality. This focus is essential as the US asphalt industry continues to increase the average percentage of RAP used in new pavements.

Increased integration of telematics and Internet of Things (IoT) for predictive maintenance on asphalt plants.

The asphalt plant is becoming a smart factory. While Gencor is a machinery manufacturer, its strategic product categories now include 'Fleet management/telematics/hauling/ticketing software solutions,' indicating a clear move into the digital services space. The industry trend in 2025 is toward IoT-Enabled Equipment for real-time tracking of plant performance, which is vital for predictive maintenance.

Gencor's new Ultralogiks 10 blending system is the foundation for this data-driven future. It's a sophisticated, Windows-based control system with faster microprocessor speeds and enhanced reporting capabilities. This system collects and processes the granular data needed to transition from reactive repairs to predictive maintenance, improving uptime for contractors. Honestly, minimizing a plant's downtime is the single biggest factor in maximizing a contractor's profit.

Adoption of modular and portable plant designs to meet rapid deployment needs.

The Infrastructure Investment and Jobs Act (IIJA) has created a massive, decentralized demand for road materials across the US, requiring plants to be moved closer to job sites. Gencor's portable plant designs directly address this logistical challenge. The G-Series Portable Plant is a key innovation, offering the features of the larger Ultraplant® in a compact, highly mobile format.

Here's the quick math on deployment speed:

• Plant Capacity: Available in 150 and 200 U.S. Tons per hour of hot mix asphalt.
• Silo Erection Time: The single-piece Self-Erect Silo (available in 50 and 75 ton capacities) can be erected in as little as ten minutes without requiring a separate crane.

This rapid deployment capability reduces site setup costs and allows contractors to quickly service projects in remote or multiple locations, a defintely necessary edge in the current high-demand environment.

Automation in plant controls and burner technology to improve fuel efficiency and lower emissions.

Gencor's core competency lies in its combustion and plant control systems, which are central to both efficiency and environmental compliance. The company's patented counterflow Ultradrum® technology is recognized as the most efficient drum mixer in the industry because its design isolates the mixing section from the burner flame, preventing asphalt degradation and maximizing heat exchange.

The control systems driving this efficiency include:

• Vector® Digital Burner Control: A fully automatic system that optimizes the air-to-fuel ratio to minimize fuel usage and gas emissions while maximizing production.
• Gen V™ Burner Control: A new digital system featuring an improved Human-Machine Interface (HMI) and the ability to control multi-fuel burners (natural gas, fuel oil, liquid propane).
• Zero-Emission Heaters: Gencor also offers a new zero-emission SH series thermal fluid heater that provides clean process heat without a conventional combustion burner or exhaust stack, directly supporting the goal of achieving net zero carbon emissions by 2050.

This continuous innovation in burner and drum technology is why Gencor's equipment is often cited for its low operating costs and environmental stewardship.

Gencor Industries, Inc. (GENC) - PESTLE Analysis: Legal factors

The legal landscape for Gencor Industries is defined by a dual pressure: heightened regulatory compliance costs in manufacturing and a critical, near-term internal reporting deficiency. The most immediate legal risk is the company's non-compliance with NYSE American listing standards, which required an extension until August 19, 2025, to file delinquent financial reports, specifically the Form 10-K for the fiscal year ended September 30, 2024, and Forms 10-Q for the first two quarters of fiscal year 2025.

This failure to file timely reports, caused by significant auditor turnover, places downward pressure on the stock price and limits investor visibility into the company's true financial health, despite preliminary unaudited Q1 FY2025 revenues being up 20%. The compliance failure itself is a major legal and governance issue that overshadows typical operational regulatory burdens.

Stricter Occupational Safety and Health Administration (OSHA) regulations for heavy machinery operation and plant noise levels.

For a heavy machinery manufacturer like Gencor Industries, compliance with the Occupational Safety and Health Administration (OSHA) is a continuous, escalating cost. As of January 15, 2025, OSHA increased its maximum penalties, raising the financial risk of non-compliance. A single willful or repeated violation now carries a maximum penalty of $165,514, up from $161,323, while Serious and Other-Than-Serious violations rose to $16,550 per violation.

The company must also navigate new standards impacting its manufacturing and construction-site equipment. This includes the updated Hazard Communication Standard (HCS) for chemical handling in its plants and new Personal Protective Equipment (PPE) requirements for construction workers, effective January 13, 2025, requiring a proper fit for enhanced protection. Furthermore, the proposed OSHA rule on Heat Hazard Protections, announced in August 2024, will likely mandate new procedures for employees working with hot mix asphalt equipment in high-heat environments, requiring access to water, shade, and rest breaks.

• $165,514: Maximum penalty for a single Willful or Repeated OSHA violation in 2025.
• Hazard Communication: Stricter requirements for Safety Data Sheets (SDS) and chemical labeling in 2025.
• PPE: New standards effective January 2025 mandate proper fit for construction-related equipment workers.

Federal Acquisition Regulation (FAR) compliance is essential for securing government contracts.

Gencor Industries, as a supplier of equipment used in highway and road construction, relies on government contracts that are governed by the Federal Acquisition Regulation (FAR). Compliance is a moving target, with new Federal Acquisition Circulars (FACs) constantly updating requirements. The July 2025 edition of the FAR incorporates final rules on critical areas like Debarment and Suspension Procedures and changes to Size and Socioeconomic Status.

Specifically, FAC 2025-06, effective August 27, 2025, adjusts statutory acquisition-related thresholds for inflation, which impacts the classification and administrative burden of certain contracts. Also, FAC 2025-03, effective January 17, 2025, improved the consistency of suspension and debarment procedures, which provides greater transparency for contractors but requires internal legal teams to maintain closer alignment between procurement and nonprocurement compliance systems.

Patent and intellectual property (IP) protection for proprietary burner and mixing technologies is a continuous cost.

Protecting Gencor Industries' core proprietary burner and mixing technologies is a necessary, escalating legal expense. The U.S. Patent and Trademark Office (USPTO) fee schedule, effective January 19, 2025, increased the cost of maintaining and prosecuting patents.

For a large entity, the cost of maintaining a patent for its full term has risen. The maintenance fees, due at 3.5, 7.5, and 11.5 years, have increased by approximately 7.5%. For example, the 11.5-year maintenance fee for a large entity is now $8,280. The USPTO also introduced new surcharges to discourage prolonged prosecution, such as a fee of $1,500 for a first Request for Continued Examination (RCE), up from $1,360. The entire cost structure incentivizes a more compact and expensive front-loaded prosecution strategy.

Increased scrutiny on supply chain transparency and anti-bribery laws in international sales.

Gencor Industries' international sales expose it to a complex web of global anti-corruption laws, which are undergoing significant changes in 2025. The U.S. Foreign Corrupt Practices Act (FCPA) enforcement environment saw a temporary 'pause' via an Executive Order in February 2025, but new Department of Justice (DOJ) guidelines issued in June 2025 effectively ended the pause, signaling a renewed, albeit more focused, enforcement.

The DOJ's new focus prioritizes FCPA violations that harm U.S. national security, threaten U.S. companies' competitiveness, or involve cartels and transnational criminal organizations. This means Gencor must ensure its international agents and distributors are defintely not engaging in bribery that could be tied to these high-priority areas. Furthermore, the Foreign Extortion Prevention Act (FEPA) is a new tool in the U.S. arsenal, criminalizing the receipt of bribes by foreign officials-the 'demand side' of foreign bribery-which increases the risk for foreign counterparties and requires stricter due diligence for Gencor.

Internationally, the UK's new 'Failure to Prevent Fraud Offence,' set to take effect in September 2025, broadens corporate criminal liability for fraud committed by associated persons, including third-party agents. This requires Gencor to strengthen its supply chain transparency and internal controls, especially in foreign jurisdictions, to mitigate the risk of unlimited fines and reputational damage.

Gencor Industries, Inc. (GENC) - PESTLE Analysis: Environmental factors

Environmental Protection Agency (EPA) mandates for lower $\text{NO}_{\text{x}}$ and particulate matter emissions from asphalt plant burners.

The regulatory environment for combustion emissions is tightening significantly, creating both a compliance risk for older equipment and a clear sales opportunity for Gencor Industries, Inc.'s advanced systems. The Environmental Protection Agency ($\text{EPA}$) is actively strengthening limits on nitrogen oxides ($\text{NO}_{\text{x}}$) from new, modified, and reconstructed fossil fuel-fired stationary combustion turbines, with a final action deadline set for November 2025.

This push is driven by the 'Good Neighbor' Plan, which mandates substantial $\text{NO}_{\text{x}}$ reductions from large industrial sources across 23 states by 2026. For new gas-combustion turbines using Selective Catalytic Reduction ($\text{SCR}$), the EPA is proposing a stringent $\text{NO}_{\text{x}}$ standard of 3 parts per million ($\text{ppm}$), with a comment range down to 2 ppm. This is a serious technical challenge for competitors. Gencor's patented Ultraplant is a key asset here; its positive volatile capture and recovery system is specifically designed to eliminate blue smoke and asphalt odors, feeding those vapors back into the combustion process as fuel. This design allows Gencor plants to be accepted in the most environmentally sensitive areas, giving them a defintely competitive edge as these new rules take effect.

Demand for equipment that efficiently handles high percentages of recycled materials ($\text{RAP/RAS}$).

The economics of asphalt production are now inseparable from recycling. The market for asphalt recycling in-plant equipment is booming, projected to reach an estimated $1500 million in 2025 and grow at a Compound Annual Growth Rate ($\text{CAGR}$) of 8.5% through 2033. This growth is fueled by sustainability mandates and cost savings.

The industry average for using Recycled Asphalt Pavement ($\text{RAP}$) in new mixtures in the U.S. has climbed to 22.2% as of 2022. However, Gencor's technology is engineered to exceed this standard by a wide margin. Their MEGAPLANT and Ultraplant systems are designed to produce mixes with over 50% RAP at high production rates, sometimes exceeding 800 tons per hour (tph). This high-recycling capability directly translates into lower material costs for contractors, saving them an average of $7.80 per ton compared to virgin mixes.

Here's the quick math on the market opportunity:

State-level carbon reduction goals push for electrification or alternative fuel sources for equipment.

The long-term transition to net-zero is forcing a fundamental shift in the construction equipment sector. The global electric construction equipment market is forecast to grow at a massive 23.2% annually, reaching $77.2 billion by 2032. While Gencor's asphalt plants are not yet fully electric, the trend is an undeniable risk to their fossil-fuel-dependent combustion systems.

States are leading the charge: California has a goal of achieving carbon neutrality by 2045, and New York is implementing new EV-ready requirements for construction contracts starting April 1, 2025. This creates a powerful incentive for contractors to seek equipment that can run on alternative fuels like hydrogen or fully electrify. Gencor's competitive response must focus on the fuel efficiency of its Ultradrum technology, which is designed for the highest efficiency heat exchange, or accelerate development of alternative fuel burners to mitigate this systemic risk.

Water usage and runoff regulations for aggregate and concrete washing operations are tightening.

Water quality compliance is becoming a major operational headache for Gencor's customers in the aggregate and concrete sectors. EPA updates in 2025 have tightened compliance rules for stormwater discharges from industrial sites. Specifically, the Construction and Development Effluent Guidelines and Standards ($\text{C\&D}$ Rule) strictly prohibit the discharge of concrete washout water without an appropriate control. This wastewater is highly caustic, with a $\text{pH}$ near 12, and can cause severe environmental harm.

The tightening standards are evident at the state level. In Washington, the Department of Ecology is updating its Sand and Gravel General Permit in 2025 to include new vehicle washing requirements and clarify sediment track-out rules for the approximately 850 facilities that produce aggregate, concrete, and asphalt. This means Gencor's clients need sophisticated water treatment and recycling systems, which is a clear opportunity for Gencor to expand its environmental control equipment segment by offering:

• Advanced concrete washout containment and recycling systems.
• Closed-loop water treatment for aggregate washing to prevent caustic runoff.
• Equipment that minimizes water usage in the first place, such as Warm-Mix Asphalt ($\text{WMA}$) capability.