Plans to pump money into rebuilding the nation’s roads, bridges and other infrastructure could give companies that make machinery and materials a solid foundation for growth.
The plans are long overdue, economists and business leaders have said, as the nation’s roads, bridges and other infrastructure age without any significant overhaul.
President
Details of the deal were scarce, but the pared-down plan, with
“From an economic growth perspective, we see the infrastructure deal really boosting productivity,” said
Analysts at Citi and elsewhere have been focusing on the president’s
Any deal that makes it to the president’s desk for a signature will be spread out over many years, giving stock values an initial boost before the long-term benefits to profits and revenue kick in. And it’s the larger companies that will likely see greater benefits from years-long construction and overhaul projects.
Citi expects nearly all heavy machinery makers in its coverage group to benefit from government spending, but
“Coming as little surprise to anyone that has passed by a major highway project,
Profits for many companies tied to the construction or industrial sector are already projected to gain ground over the next several years as the economy recovers. Any spending measure spread out over years will help secure and boost that growth through contracts for projects and orders for supplies and equipment.
Makers of cranes, bulldozers and other machinery are still only part of the bigger picture. Companies that make asphalt, concrete and other road and building materials are in a good position with any future infrastructure spending.
“Remember that in any definition of infrastructure, if it’s new construction, aggregates is going to be in the foundation,” said
Paint and coatings makers like
Copyright 2021 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed without permission., source