The Road Ahead

Forces shaping Texas’s asphalt industry

By Terry Morris Lhoist North America Associate Member Advisory Comittee Chair

The Texas asphalt industry is entering one of the most dynamic periods in its history. Texas continues to lead the nation in population growth, economic expansion, and infrastructure investment—and this boom is reshaping how we design, build, and maintain the state’s transportation network.

For TXAPA associate members, who provide the equipment, materials, technology, and services that keep our industry moving, success in the coming years will require more than delivering quality products and services. We must anticipate change, embrace innovation, and work together to solve increasingly complex challenges. As we approach 2027, here are six industry forces every TXAPA member should have on their radar.

1.) Workforce shortages are becoming a generational problem

Experienced operators, mechanics, technicians, drivers, and laboratory personnel continue to retire faster than they can be replaced. Recruiting and retaining skilled employees remains one of the most significant issues facing asphalt contractors, producers, and suppliers across Texas. The companies that succeed will invest in training, apprenticeships, internships, and partnerships with technical schools and universities.

Associate members also play an important role by providing technical training, equipment demonstrations, and ongoing support that help companies maximize the workforce they have while preparing for the next generation. Waiting for qualified employees to appear is no longer a strategy.

2.) Competition is increasing across the construction industry.

Rising labor costs, equipment expenses, insurance premiums, transportation costs, fuel prices, and material costs continue to place pressure on profitability. At the same time, customers expect projects to be delivered safely, efficiently, and with consistent quality.

Companies that compete solely with price will find themselves at a disadvantage. Those that improve efficiency, maximize equipment uptime, streamline operations, and embrace technologies that increase productivity will be better positioned for long-term success. Many TXAPA associate members are helping contractors accomplish exactly that through innovative equipment, software, automation, and technical expertise.

3.) AI infrastructure is booming

Artificial intelligence is creating one of the largest construction opportunities Texas has seen in decades. Massive data centers are being planned and constructed across the state, creating demand for site development, access roads, parking facilities, utilities, drainage systems, and supporting transportation infrastructure. Every new facility represents opportunities for asphalt contractors, producers, and the many associate members who provide the products, services, and expertise needed before the first server ever comes online. For our industry, these projects represent far more than buildings—they are complete infrastructure ecosystems

4.) Texas’s population continues to grow

Texas is attracting businesses and new residents at an unprecedented pace. That growth translates into increased demand for highways, municipal streets, airports, industrial developments, subdivisions, utilities, and commercial construction. It also means ongoing rehabilitation and preservation of existing pavements to keep pace with more traffic. The long-term outlook for asphalt infrastructure in Texas remains exceptionally strong.

5.) Sustainability is top of mind

Sustainability has evolved from a regulatory discussion into a business opportunity. The asphalt industry continues to develop innovative solutions that improve pavement performance while reducing environmental impact. Warm-mix asphalt, recycled materials, improved plant efficiency, emissions-reduction technologies, and advancements in quality control all demonstrate the industry’s commitment to continuous improvement. Many TXAPA associate members are leading these innovations, helping contractors deliver projects that are both high-performing and environmentally responsible.

6.) Our voice is only as strong as our participation.

Our voice is only as strong as our participation. Transportation funding, environmental regulations, workforce development, and evolving specifications all directly impact the asphalt industry. TXAPA has long served as the collective voice of the industry, representing members while promoting the benefits of quality asphalt pavements across Texas.

That voice remains strong only when members stay engaged through committees, technical meetings, educational events, and legislative advocacy. The future of our industry depends on continued participation from every segment within membership.

The Road Ahead

TXAPA and the Texas asphalt industry have never been defined by obstacles. Th ey have always been defined by the people willing to overcome them. The coming years will bring workforce challenges, evolving technology, changing markets, and increased competition. They will also create tremendous opportunities for companies that embrace innovation, invest in their people, and stay engaged with the industry.

One of the greatest advantages of TXAPA membership is access to a community of professionals committed to advancing asphalt in Texas. Through technical committees, educational programs, conferences, and year-round collaboration, members share ideas, solve challenges, and help strengthen the industry together. The future of Texas asphalt is bright—and the companies that choose to learn, innovate, and actively participate will be well positioned to help build it.