What changed in this filing

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Item 1. Business

2022-02-28 compared with 2021-03-01 · 113 added, 123 removed, 244 unchanged (49% of the section changed)

Astec Industries, Inc.

is a Tennessee corporation which was incorporated in 1972.

We design, engineer, manufacture and market equipment and components used primarily in road building and related construction activities, as well as other products discussed below.

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COVID-19 Pandemic

The COVID-19 pandemic has caused significant disruptions to national and global economies.

based businesses are designated as essential businesses for critical infrastructure companies by the U.S.

Department of Homeland Security and, as such, have remained open throughout the pandemic.

Two of our foreign operations in the Materials Solutions segment, located in Northern Ireland and South Africa, as dictated by their local governments, temporarily ceased manufacturing activities in late March 2020.

The South Africa site reopened on May 4, 2020, and the Northern Ireland facility reopened on May 11, 2020.

Our top priority is to protect our employees and their families, our customers and suppliers and our operations from any adverse impacts by taking precautionary measures as directed by health authorities and local governments.

In early March 2020, we formed a COVID-19 task force, which continually monitors information from government agencies, our sites, customers, suppliers and other sources.

We have enacted several policies to combat the spread of the virus and keep our employees and visitors safe, including work at home initiatives, limits on employee travel, visitor policies, cleaning and disinfecting procedures and mandated temperature checks for visitors and employees.

We are utilizing technology to hold meetings virtually as business permits.

During 2020, our sales and profits were negatively impacted by the COVID-19 pandemic, and it may continue to negatively disrupt our business and results of operations in the future.

The full extent of the COVID-19 pandemic on our operations and the markets we serve remains highly uncertain and will depend largely on future developments related to the COVID-19 pandemic, including infection rates increasing or returning in various geographic areas, the ultimate duration of the COVID-19 pandemic, actions by government authorities to contain the outbreak or treat its impact, such as re-imposing previously lifted measures or putting in place additional restrictions, and the widespread distribution and acceptance of an effective vaccine, among other things.

These developments are constantly evolving and cannot be accurately predicted.

The COVID-19 pandemic has caused significant disruptions to national and global economies and to our business.

While our businesses have generally remained operational throughout the pandemic, with temporary closures in the United Kingdom and South Africa early in the pandemic, we have been significantly affected by the contributory effects of the pandemic such as decreased demand for our products in 2020, material price increases, increased lead times from production materials, supplies and parts and labor shortages.

These trends continue to impact our business today and may continue to impact our business in the near-term.

We have also taken precautions to protect our employees and their families and our customers and suppliers from COVID-19 and continually monitor the markets in which we operate for the effects of COVID-19 and the related actions of governments and other authorities to contain COVID-19.

The COVID-19 pandemic may continue to negatively disrupt our business and results of operations in the future.

The ongoing impact of the COVID-19 pandemic on our operations and the markets we serve remains uncertain due to constantly evolving developments including, but not limited to, government directives, treatment availability and acceptance, vaccine mandates and the spread of new variants, such as the Delta and Omicron variants, and cannot be accurately predicted.

See Part I, Item 1A.

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• We strive to optimize the supply chain through leveraging the size and scale of our global operations to improve lead times, lower logistics costs and introduce localized product support.

As part of these initiatives, we consolidated four sites in 2019 and 2020 and recently announced the consolidation of our Tacoma site.

A further discussion of these site consolidations is included in Part II, Item 7.

Management's Discussion and Analysis of Financial Condition and Results of Operations of this Annual Report on Form 10-K.

Since the inception of these initiatives, we have consolidated four sites and are currently in the process of consolidating our Tacoma site, which is expected to be completed during early 2022.

In addition, in late 2020 we launched a multi-year phased implementation of a standardized enterprise resource planning ("ERP") system across our global organization, which will replace much of our existing disparate core financial systems.

The upgraded ERP will initially convert our internal operations, manufacturing, finance, human capital resources management and customer relationship systems to cloud-based platforms.

This new ERP system will provide for standardized processes and integrated technology solutions that enable us to better leverage automation and process efficiency.

We believe enhanced efficiencies across the Astec organization will result from utilizing our OneASTEC business model to concentrate resources on excellence initiatives.

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• We seek to identify, analyze and assess potential targets for strategic acquisitions and partnerships globally to establish a presence in attractive new markets, supplement our current product offerings or accelerate technologies or other enhancements that can be leveraged in our existing product portfolio.

As part of our growth initiatives, we completed three acquisitions in 2020.

Since the inception of our growth initiatives, we have completed three acquisitions.

A further discussion of these acquisitions is included in Part II, Item 8.

Management's Discussion and Analysis of Financial Condition and Results of Operations of this Annual Report on Form 10-K.

Financial Statements and Supplementary Data of this Annual Report on Form 10-K.

Business Segments

The Company consists of a total of 33 compani es that are included in our consolidated financial statements, of which 25 represent our manufacturing sites and sites that operate as sales offices for our manufacturing locations.

We operate manufacturing sites and sites that operate as sales offices for our manufacturing locations.

During the first quarter of 2020, we completed an internal reorganization from a decentralized management structure to a matrix organizational management structure with major directives and decisions being made at the segment and/or parent company level and, as a result, realigned our reportable segments moving from three to two reportable segments (plus Corporate) - Infrastructure Solutions and Materials Solutions.

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Amounts previously reported under the previous segment structure have been restated to conform to the new segment structure.

Additionally, in both internal and external communications, we are transitioning references to each individual site by a name associated with its location, as compared to previous references to the individual subsidiary company name.

Additionally, in both internal and external communications, we have transitioned references to each individual site by a name associated with its location, as compared to previous references to the individual subsidiary company name.

Infrastructure Solutions Segment

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Site Location Site Location

Albuquerque (1)

New Mexico, United States Enid (3)

Oklahoma, United States

Hameln, Germany EUG-Airport Rd Oregon, United States

Australia Brisbane, Australia LatAm Santiago, Chile

Blair Nebraska, United States Parsons Kansas, United States

Burlington Wisconsin, United States St.

Bruno Quebec, Canada

CHA-Jerome Ave Tennessee, United States Tacoma (4)

Australia Brisbane, Australia EUG-Airport Rd Oregon, United States

Blair Nebraska, United States LatAm Santiago, Chile

Burlington Wisconsin, United States Parsons Kansas, United States

CHA-Jerome Ave Tennessee, United States St-Bruno Quebec, Canada

CHA-Manufacturers Rd Tennessee, United States Tacoma (1)

Washington, United States

CHA-Manufacturers Rd Tennessee, United States Thailand Bangkok, Thailand

CHA-Wilson Rd Tennessee, United States

(1) The Albuquerque site was closed as of March 31, 2020 and its land and building were sold in the third quarter of 2020.

Manufacturing and marketing of Albuquerque product lines were transferred to other facilities within the Infrastructure Solutions segment in late 2019 and early 2020.

(2) Operations of AMM ceased in 2019 and its land and building were sold in January 2020.

(3) In late 2019, the oil and gas drilling product lines located at the Enid facility were impaired and discontinued.

These remaining assets were sold in the third quarter of 2020.

In October 2020, we sold the assets related to Enid's remaining water well line of business.

CHA-Wilson Rd Tennessee, United States Thailand Bangkok, Thailand

1 In January 2021, management announced plans to close the Tacoma facility.

Manufacturing and marketing of Tacoma product lines are expected to be transferred to other facilities within the Infrastructure Solutions segment in mid-2021.

based sites within the Infrastructure Solutions segment are primarily manufacturing operations while those located internationally generally market, service and install equipment and provide parts in the regions in which they operate for many of the products produced by all of our manufacturing sites.

The Tacoma facility ceased manufacturing operations at the end of 2021.

The transfer of the manufacturing and marketing of the Tacoma product lines to other facilities within the Infrastructure Solutions segment is expected to be completed during early 2022.

The sites based in North America within the Infrastructure Solutions segment are primarily manufacturing operations while those located outside of North America generally market, service and install equipment and provide parts in the regions in which they operate for many of the products produced by all of our manufacturing sites.

Our Thailand site is in the start-up phase of new sales operations.

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Asphalt storage tanks Hot oil heaters Bagging plants

Fuel storage tanks Industrial and asphalt burners and systems Custom batch plants

Material transfer vehicles Soil stabilizing-reclaiming machinery Blower trucks and trailers

Milling machines Soil remediation plants Wood chippers and grinders

Pump trailers Concrete batch plants Control systems

Liquid terminals Storage equipment and related parts Service, construction and retrofits

Polymer plants Concrete mixers Engineering and environmental permitting services

Fuel storage tanks Industrial and asphalt burners and systems Blower trucks and trailers

Material transfer vehicles Soil stabilizing/reclaiming machinery Wood chippers and grinders

Milling machines Soil remediation plants Control systems

Pump trailers Concrete batch plants Service, construction and retrofits

Liquid terminals Storage equipment and related parts Engineering and environmental permitting services

Polymer plants Concrete mixers

A typical asphalt mixing plant consists of heating and storage equipment for liquid asphalt;

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We also build batch type asphalt plants and have developed specialized asphalt recycling equipment for use with our hot-mix asphalt plants.

Our new Versa Jet burner versatile platform is d eveloped for retrofit applications and has the capacity to fire at a range of rates.

The adaptable design is compatible with virtually all drum designs and can be installed with minimal modifications needed to asphalt mixing plants produced by us as well as our competitors.

In addition, we developed the patented water injection warm mix asphalt system, which allows the asphalt mix to be prepared and placed at lower temperatures than conventional systems and operates with a substantial reduction in emissions during paving and load-out.

Previous technologies for warm mix production rely on expensive additives, procedures and/or special asphalt cement delivery systems that significantly increase the cost per ton of mix.

Our multi-nozzle device eliminates the need for the expensive additives by mixing a small

amount of water and asphalt cement together to create microscopic bubbles that reduce the viscosity of the liquid asphalt coating on the rock, thereby allowing the mix to be handled and worked at lower temperatures.

Our multi-nozzle device eliminates the need for the expensive additives by mixing a small amount of water and asphalt cement together to create microscopic bubbles that reduce the viscosity of the liquid asphalt coating on the rock, thereby allowing the mix to be handled and worked at lower temperatures.

We are focused on producing equipment with the most advanced mix recycling technology in the industry.

More tons of recyclable asphalt pavement ("RAP") are available than are currently being utilized due to restrictions in the amount of RAP allowed by various governmental agencies.

More tons of reclaimed asphalt pavement ("RAP") are available than are currently being utilized due to restrictions in the amount of RAP allowed by various governmental agencies.

Our recycle technology is continuously being enhanced and is providing the science to alleviate the concerns driving such restrictions and to improve RAP utilization percentages in the asphalt industry.

Our latest system improvement, the RAP Pre-Dryer System, was successfully field prototyped in 2018 and is now available to the industry.

It has produced mixes of up to 80% RAP and can consistently produce mixes with 70% RAP.

We have also enhanced our Double Barrel equipment line by providing a system with increased drum length and an external mixer that provides the capability to use up to 65% RAP without pre-drying.

Many of our highly technical, sophisticated large asphalt plants, while ideally suited for the United States domestic market, are not as well suited in many international markets.

In 2019, we completed testing of our new Voyager 140 portable asphalt plant designed specifically for the international market.

The Voyager 140’s design is based upon our proven Double Barrel drum mixer and has production capacity of 140 tons per hour and RAP mixing capabilities of 50%.

The Voyager 140 also provides full-size plant features in a compact highly-portable configuration.

In addition, we are currently developing our new Ventura 140SL portable asphalt plant, which is also focused on satisfying needs of the international market, and introduces a smaller, more mobile plant design with single-load capability.

In 2019, we completed testing of our Vantage 140 portable asphalt plant designed specifically for the international market.

The Vantage design is based upon our proven Double Barrel drum mixer and has production capacity of 140 metric tons per hour and RAP mixing capabilities of 50%.

The Vantage also provides full-size plant features in a compact highly-portable configuration.

Additionally, we have expanded our mobile plant offering with the newly designed Ventura 140.

The Ventura is designed with a counter-flow drying drum that feeds an external coater and provides production rates up to 140 metric tons per hour of virgin mix and is used where recycled material is not available.

The Ventura 140SL portable asphalt plant is also focused on satisfying needs of the international market and introduces a smaller, more mobile plant design with single-load capability.

We have also developed the new, hybrid-powered FT4250 mobile impactor plant.

Hybrid power allows operators flexible power options using either line power or a genset that allows for reduced noise levels, no engine emissions and the ability to run indoors.

Our pavers have been designed to minimize maintenance costs while exceeding road surface smoothness requirements.

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The Shuttle Buggy includes the Guardian System that is designed to anticipate equipment maintenance needs resulting in more uptime reliability while also providing production and performance data as well as real-time location information to the owner.

The new SB3000 model introduced to the market in 2020, incorporates features and technology to improve the user experience in terms of improved visibility, ground level operation, as well as improved material handling and vehicle transportability.

The SB3000 model introduced to the market in 2020, incorporates features and technology to improve the user experience in terms of improved visibility, ground level operation, as well as improved material handling and vehicle transportability.

Our Spray Paver model, which is recommended for use with the Shuttle Buggy, is also designed to carry and spray tack coat directly in front of the hot mix asphalt in a single process, thus eliminating the need for a separate tack truck.

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In addition to the half-lane and larger highway class milling machines, we also manufacture a smaller, utility class machine for two-to-four foot cutting widths and a utility class cold planer model mounted on steel wheels.

The RX-505, our newest cold planer, is equipped with two new safety features that allow for safe cutter drum access and maintenance and obstacle detection while the machine is in reverse.

Soil stabilizers are produced in multiple configurations and double as asphalt reclaiming machines for road rehabilitations, in addition to their primary purpose of stabilizing soil sub-grades with additives to provide an improved base on which to pave.

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Our screeds can be configured to fit many types of asphalt paving machines, including machines manufactured by us as well as our competitors.

Equipment for the production of concrete is produced primarily at three facilities:

Blair, Burlington and St.

Together, these three locations produce a market leading product portfolio with many synergistic opportunities to create value for our customers.

The Blair and St.

Bruno sites were acquired in 2020 and joined the Burlington location to expand our product line and offering for the concrete production industry.

The series of concrete batch plants, including the LO-PRO, the ALL-PRO, the Model S, the portable Mobile 12 and the modular LoGo, are key products.

Concrete is one of the world's most used and durable construction materials.

Concrete production equipment is primarily manufactured at three facilities:

Blair, Burlington and St-Bruno.

Together, these three sites produce a market leading product portfolio.

The Blair and St-Bruno sites were acquired in 2020 and joined the Burlington location to expand our concrete product line.

We manufacture leading portable and stationary concrete production equipment including transit and central mix concrete plants.

Our portable concrete plants are known for quick set-up and tear down as well as exceptionable reliability and longevity over numerous relocations.

Our stationary concrete production plants are known for custom-engineered design flexibility suitable for various concrete production sites.

Our concrete mixer designs include tilt mixers and horizontal reversing mixers.

Both mixer types are available as stationary designs with optional mobile and self-erect features.

The tilt mixer is our most popular mixer type for concrete paving and ready mix production while the horizontal reversing mixers are a low dust, low noise option primarily marketed to ready mix producers.

We also produce industry leading combustion products for a variety of industrial applications as new applications have grown rapidly.

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We market our hot-mix asphalt products domestically and internationally primarily under the Astec trademark.

Asphalt plants and related equipment are sold directly to asphalt producers or domestic and foreign government agencies through our domestic sales department, our international entities and through a Company-owned dealership (Australia).

Asphalt plants and related equipment are sold directly to asphalt producers or domestic and foreign government agencies through our domestic and international sales departments.

Our concrete products are marketed domestically and internationally under the RexCon, CON-E-CO and BMH trademarks.

RexCon and BMH concrete plants and related equipment are sold directly to concrete producers and foreign agencies through our domestic sales department and our international entities.

The CON-E-CO concrete plants are marketed through dealers domestically and internationally.

We market our asphalt paving equipment under the Roadtec and Carlson trademarks both domestically and internationally to highway and heavy equipment contractors, utility contractors and domestic and foreign governmental agencies both directly and through dealers (including Australia in the Australian and New Zealand markets).

Our concrete plants and related equipment are sold directly to concrete producers and foreign agencies through our domestic and international sales departments.

The BMH and CON-E-CO products are also marketed through dealers domestically and internationally.

Mobile construction equipment and factory authorized machine rebuild services are marketed both directly and through dealers.

This segment's products are marketed by direct and dealer support sales staff and domestic and international independent distributors, including our sites in Australia, AME and Thailand.

This industry segment faces strong competition in price, service and product performance and competes with both large publicly-held companies and various smaller manufacturers.

This segment's products are marketed by direct and dealer support sales staff and domestic and international independent distributors, including our Australia, AME and Thailand sites.

This industry segment faces strong competition in price, service and product performance and competes with both large publicly-traded companies and various smaller manufacturers.

The Infrastructure Solutions segment competitors include:

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The backlog for the Infrastructure Solutions segment at December 31, 2021 and 2020 was approximately $449.3 million and $218.2 million, respectively.

Management expects the entire current backlog to be filled in 2021.

Materials Solutions Segment

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Site Location Site Location

AME Johannesburg, South Africa Mequon (1)

Wisconsin, United States

Belo Horizonte Belo Horizonte, Brazil Omagh Omagh, Northern Ireland

EUG-Franklin Blvd Oregon, United States Sterling Illinois, United States

India Ahmedabad, India Thornbury Ontario, Canada

Johannesburg Johannesburg, South Africa Yankton South Dakota, United States

(1) The Mequon facility ceased production operations in August 2020 with the manufacturing and marketing for the Mequon product lines transferring to other facilities within the Materials Solutions segment in late 2020.

AME Johannesburg, South Africa Omagh Omagh, United Kingdom

Belo Horizonte Belo Horizonte, Brazil Sterling Illinois, United States

EUG-Franklin Blvd Oregon, United States Thornbury Ontario, Canada

India Ahmedabad, India Yankton South Dakota, United States

Johannesburg Johannesburg, South Africa

The sites within the Materials Solutions segment are primarily manufacturing operations with the AME and India sites functioning to market, service and install equipment and provide parts in the regions in which they operate for many of the products produced by all of our manufacturing sites.

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Crushing equipment

Track-mounted systems Bulk material handling solutions

Mobile plants Bulk material handling solutions

Vibrating equipment Screening equipment Electrical control centers

Modular relocatable stationary plants Conveying equipment Plant automation products

Mobile portable plants Mineral processing equipment Consulting and engineering services

Modular plants and systems Conveying equipment Plant automation products

Portable plants Mineral processing equipment Consulting and engineering services

In conjunction with the Materials Solutions products we manufacture, we offer consulting and engineering services to provide complete "turnkey" processing systems, which often include electrical control centers and plant automation products we produce.

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We offer the highly-portable Fast Pack System, featuring quick setup and teardown, thereby maximizing production time and minimizing downtime.

We also offer portable fully self-contained and self-propelled Fast Trax track-mounted jaw, cone, VSI and horizontal shaft crushers, which are ideal for either recycle or hard rock applications, allowing the producer to move the equipment to the material.

The expanded GT line of track-mounted crushing and screening plants focuses more specifically on the need for rental and global markets.

We also offer portable fully self-contained and self-propelled Fast Trax track-mounted jaw, cone, vertical shaft impactors and horizontal shaft crushers, which are ideal for either recycle or hard rock applications, allowing the producer to move the equipment to the material.

The expanded GT line of track-mounted crushing and screening plants focuses more specifically on the needs of global markets.

Portable plants combine various combinations of crushing, screening and conveying equipment mounted on tow away chassis and track chassis configurations.

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Our SuperStacker telescoping conveyor and Wizard Touch automated controls are designed to add efficiency and accuracy to whatever the stockpile specifications require.

Additionally, high capacity rail and barge loading/unloading material handling systems are an important part of their product lines.

Additionally, high capacity rail and barge loading/unloading material handling systems are an important part of our product lines.

Our complete line of industry leading rock breaker systems for the mining, quarry and recycling markets provide large-scale stationary rock breakers for open pit mining, as well as mid-sized stationary rock breakers for underground applications.

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The principal purchasers of aggregate processing equipment include distributors, highway and heavy equipment contractors, sand and gravel producers, recycle and crushing contractors, open mine operators, quarry operators, port and inland terminal authorities, power stations and domestic and foreign governmental agencies.

Materials Solutions' equipment and aftermarket sales and service program is primarily marketed through an extensive network of dealers by dealer support sales employees and domestic and international independent distributors.

Materials Solutions' equipment and aftermarket sales and service program are primarily marketed through an extensive network of dealers by dealer support sales employees and domestic and international independent distributors.

The Materials Solutions segment faces strong competition in price, service and product performance.

Materials Solutions equipment competitors include the following as well as smaller manufacturers, both domestic and international:

CDE Global McCloskey Terex MO and Powerscreen

CDE Global McCloskey Terex

Deister McLanahan Thor

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At December 31, 2021 and 2020, the backlog for the Materials Solutions Group was approximately $313.3 million and $142.3 million, respectively.

Management expects the entire current backlog to be filled in 2021.

The Corporate category consists of our parent company and our captive insurance company, Astec Insurance, which do not meet the requirements for separate disclosure as an operating segment or inclusion in one of the other reporting segments.

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In many cases, we design, engineer and manufacture custom component parts and equipment to meet the particular needs of individual customers.

Manufacturing operations during 2020 took place at 22 separate locations.

Manufacturing operations during 2021 took place through 16 of our sites.

Our manufacturing operations consist primarily of fabricating steel components and the assembly and testing of our products to ensure that we achieve quality standards.

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however, certain highly customized components may require longer than normal lead times.

In addition, we have experienced challenges related to our supply chain attributable to the ongoing impact of the COVID-19 pandemic.

Other components used in the manufacturing processes include engines, gearboxes, power transmissions and electronic systems.

We purchase hydraulic breakers under a purchasing arrangement with a South Korean supplier.

We believe the South Korean supplier has sufficient capacity to meet our anticipated demand;

however, alternative suppliers exist for these components should any supply disruptions occur.

Government Regulations

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However, air pollution control equipment we manufacture, principally for hot-mix asphalt plants, must comply with certain performance standards promulgated by the Environmental Protection Agency under the Clean Air Act applicable to "new sources" or new plants.

Management believes our products meet all material requirements of such regulations, applicable state pollution standards and environmental protection laws.

We believe our products meet all material requirements of such regulations, applicable state pollution standards and environmental protection laws.

In addition, due to the size and weight of certain equipment we manufacture, we and our customers may encounter various state regulations on maximum weights transportable on highways.

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Seasonality and Backlog

Revenues for recent years, normalized for acquisitions and the closures of Enid and Mequon, have been strongest during the first, second and fourth quarters with the third quarter consistently generating weaker results.

Revenues typically are strongest during the first, second and fourth quarters with the third quarter consistently generating weaker results.

We expect future operations in the near term to be typical of this historical trend.

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Our contracts reflected in the backlog generally are not, by their terms, subject to termination.

Our management believes we are in substantial compliance with all manufacturing and delivery timetables.

Each business segment operates in domestic markets that are highly competitive with respect to price, service and product quality.

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Human Capital Resources and Management

Our employees are guided by our vision:

Our employees around the world are each guided by our purpose:

Built to Connect, and our vision:

To connect people, processes and products, advancing innovative solutions from "Rock to Road" as OneASTEC.

We are also guided by our values and our code of business conduct.

In everyday work, our employees embody our core values of Safety, Devotion, Integrity, Respect and Innovation and in doing so, directly contribute to our reputation.

Employees take pride in their work and value learning from one another.

While our employees hold our values in common, they respect different perspectives and appreciate the opportunity to work with those with diverse backgrounds.

We encourage employees to become involved in their communities and many employees contribute their time and talents to community efforts.

Our employees contribute to our efforts to provide a safe and healthy workplace for all, especially through the COVID-19 pandemic.

Every employee is also guided by our values and our code of business conduct.

In everyday work, our employees embody our core values of Safety, Devotion, Integrity, Respect and Innovation.

They do so by living our winning behaviors of Open and Honest Communications, Drive Creativity, Customer Driven Innovation and OneASTEC in all we do.

We strive to be an employer of choice, attracting and retaining top talent committed to creating a diverse, equitable and inclusive workplace where individuals are respected and valued for their diverse backgrounds and experiences.

Through comprehensive compensation and benefits and a focus on safety, we strive to support our employees' overall well-being.

In 2021, we executed our first global employee engagement survey.

In total, 73% of our workforce responded and provided us with valuable feedback.

Throughout the year we have focused on the three main areas of opportunity identified:

communication, performance management and diversity.

Employee Profile

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Compensation and Benefits

We provide robust compensation and benefits.

In addition to salaries, these programs, which vary by country/region, can include annual bonuses, share-based compensation awards, a 401(k) plan with employee matching opportunities, healthcare and insurance benefits, health savings and flexible spending accounts, paid time off, family leave, family care resources, flexible work schedules, adoption and surrogacy assistance, employee assistance programs, tuition assistance and on-site services.

As we strive to be an employer of choice, we provide competitive and robust compensation and benefits.

We achieve this by regularly conducting market reviews and adjusting as needed.

In addition to salaries, we provide regional programs, that can include annual bonuses, share-based compensation awards, a 401(k) plan with employee matching opportunities, healthcare and insurance benefits, health savings and flexible spending accounts, paid time off, family leave, family care resources, flexible work schedules, adoption and surrogacy assistance, employee assistance programs, tuition assistance and on-site services.

Health and Safety

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• provide mandatory safety trainings each month at our production facilities, which are designed to focus on empowering our employees with the knowledge and tools they need to make safe choices and to mitigate risks;

• local management completes safety management courses and cascade these safety practices throughout the organization, including daily "safety huddles" for each work-shift;

• track safety leading and lagging indicators;

• local management cascades safety practices throughout the organization, including daily "safety huddles" for each work-shift;

• we use safety scorecards, standardized signage, and visual management throughout our facilities, in addition to traditional safety training;

• regularly feature safety best practices in our employee newsletters and town halls.

• regularly conduct monthly safety calls to discuss and share best practices with the local safety managers;

• distribute monthly employee newsletters and executive-led town hall meetings.

We aspire to reduce lost time and recordable injuries each year.

During the year ended December 31, 2020, we experienced a 15% reduction in our recordable injuries compared to the year ended December 31, 2019, including zero recordable injuries at eight of our sites.

Our OSHA Incident Rate experienced a slight decline from 1.40 for the year ended December 31, 2019 to 1.39 for the year ended December 31, 2020.

During the year ended December 31, 2021, we had zero recordable injuries at five of our sites.

However, we experienced a 23% increase in our recordable injuries across all sites compared to the year ended December 31, 2020.

Our Occupational Safety and Health Administration Incident Rate experienced an increase from 1.39 for the year ended December 31, 2020 to 1.71 for the year ended December 31, 2021.

In response to the COVID-19 pandemic, we implemented significant changes that we determined were in the best interest of our employees, partners and the communities in which we operate, and which complied with government orders.

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Closely following the recommendations of the World Health Organization, the U.S.

Centers for Disease Control and local governments, we also took the following actions to ensure our employees were safe:

• adjusted work schedules to allow appropriate gaps between work-shifts enabling the proper amount of social distance between employees;

• provided additional personal protective equipment to employees;

• limited employee travel and encouraged quarantine upon return;

• developed a special COVID-19 quarantine policy that mandated employees to take time off;

• increased hygiene, cleaning and sanitizing procedures at all locations;

• implemented temperature-taking and screening protocols for outside guests as well as employees upon entering facilities;

• launched a COVID-19 task force to increase communications and ensure our employees had access to up-to-date and accurate information;

• started increasing the use of technology to hold meetings virtually where possible.

We manufacture products deemed essential to critical infrastructure industries, including health and safety, food and agriculture, and energy, and as a result, all of our production sites have continued to operate during the COVID-19 pandemic.

As such, we have invested in creating physically safe work environments for our employees.

Centers for Disease Control and local governments, we took numerous actions to ensure the health and safety of our employees.

As a result of the effects of the COVID-19 pandemic, we have experienced a shortage of necessary production personnel and increasing labor costs to attract staff in our manufacturing operations.

This has resulted in a variety of challenges in running our operations efficiently as well as meeting manufacturing demand.

We continue to adjust our production schedules and manufacturing workload distribution, outsource components, implement efficiency improvements and actively modify our recruitment process and compensation and benefits to attract and retain production personnel in our manufacturing facilities.

Talent Development, Diversity, Equity and Inclusion

Our key talent philosophy is to develop talent from within and supplement with external hires.

This approach has yielded a deep understanding among our employee base of our business, products and customers, while adding new employees and ideas in support of our continuous improvement mindset.

Our talent acquisition team uses internal and external resources to recruit highly skilled and talented workers, and we encourage employee referrals for open positions.

We provide all employees a wide range of professional development experiences, both formal and informal, at all stages in their careers.

Talent and Diversity are key components of our OneASTEC business model.

We strive to create an environment that attracts top talent and where high performance is fostered and thrives, continuous learning is engrained, diverse experience is leveraged as a competitive advantage and careers are propelled forward.

In 2021, we developed and implemented a new Performance Management model and process company-wide to align our efforts to achieve company goals and targets.

This new model includes values, professional development and cascaded common performance goals.

We provide all employees a wide range of professional development experiences, both formal and informal, at various stages in their careers.

In addition, talent development and succession planning for critical roles is a cornerstone of our talent program.

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One of our core values – Respect – reflects the behavior we strive to include in every aspect of the way we conduct business.

We recognize that our best performance comes when our teams are diverse and inclusive, and accordingly, we have begun work on building diverse talent pools as part of our recruitment efforts.

With the support of our Board of Directors, we continue to explore additional diversity, equity and inclusion initiatives.

Available Information

We recognize that our best performance comes when our teams are diverse and inclusive.

We continue to define our diversity, equity and inclusion strategy.

These efforts touch all levels of our organization including our Board of Directors, which is currently comprised of 20% women.

Corporate and Available Information

Astec Industries, Inc.

is a Tennessee corporation which was incorporated in 1972.

We make available, free of charge on or through our website (www.astecindustries.com), access to our Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, Proxy Statements on Schedule 14A Section 16 reports, amendments to those reports, and other documents filed or furnished pursuant to Section 13(a) or 15(d) of the Exchange Act as soon as reasonably practicable after such material is filed with, or furnished to, the Securities and Exchange Commission ("SEC").

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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1. Business