U.S. Infrastructure development is front and center in the national conversation. After many years of stagnation, the United States seems to be moving toward meaningful infrastructure spending. On March 31st, the Biden Administration announced the American Jobs Plan. The plan seeks to revitalize the country’s backbone through sweeping federal spending across major infrastructure areas. These include components of physical infrastructure like roads and bridges, ports and waterways, buildings, and public transit; as well as next-gen areas like clean energy and related CleanTech, modernized water utilities, and digital infrastructure.
The Jobs Plan is currently the subject of spirited debate in Washington as members of both parties negotiate the specifics of what would be drafted into law. While it is uncertain how closely any legislation might mirror the Jobs Plan, we expect a significant public spending bill to pass in 2021, directing billions of dollars to U.S. infrastructure-exposed companies. This includes companies involved in construction and engineering services, products and equipment, raw materials and composites, as well as industrial transportation.
In this piece, we highlight four companies that exemplify the sub-themes of U.S. Infrastructure Development, including:
- Jacobs Engineering: Providing Construction & Engineering Services from End-to-End
- Hubbell: Manufacturing Electrical Products for an Electrified Future
- Insteel: Enabling Resilience Through Raw Materials & Composites
- Union Pacific Corporation: Delivering Infrastructure Components by Rail & Road
Originally Posted on June 17, 2021 – Four Companies That Could Help Develop Infrastructure in the United States
Investing involves risk, including the possible loss of principal. Narrowly focused investments typically exhibit higher volatility. Investments in infrastructure-related companies have greater exposure to the potential adverse economic, regulatory, political and other changes affecting such entities. Investment in infrastructure-related companies are subject to various risks including governmental regulations, high interest costs associated with capital construction programs, costs associated with compliance and changes in environmental regulation, economic slowdown and excess capacity, competition from other providers of services and other factors. PAVE is non-diversified.
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