Biden’s Plan
America’s infrastructure has been deteriorating for years and in need of modernization. Bridges, highways, schools, airports, water treatment plants and more need attention, while services like high-speed broadband need to be expanded seamlessly across the country. The American Society of Civil Engineers (ASCE) most recent analysis gives the nation’s infrastructure a D+ grade.
President-elect Joe Biden has stated he will launch a national effort aimed at creating jobs needed to build a modern, sustainable infrastructure, a venture which will need millions of construction, skilled trades and engineering workers. Biden’s plan calls for investment of $1.3 trillion over ten years to improve the U.S. transportation infrastructure, energy and water systems, and digital networks.
Moving Forward
With the Democratic Party controlling both houses of Congress and the White House, it’s likely that plans for additional stimulus and support for Biden’s infrastructure proposals will meet with less resistance. Given that Republicans could regain control of the House in the 2022 midterm elections, it’s also likely that we will see movement to further these proposals sooner rather than later.
Investment
As there is defined need for improvement, and financial resources likely to be committed to projects that are necessary to repair, rebuild and grow America’s infrastructure, a strong case can be made for investment in industries that are involved in the process. Specifically, companies that provide construction and engineering services for large-scale infrastructure projects, those that supply raw materials and composites, products and equipment suppliers who sell or rent the needed specialty equipment, and companies that provide the industrial transportation of raw materials and equipment can be considered candidates for investment.
We are monitoring infrastructure funding and developments which may lead to further investment opportunities. Please contact us if you have any questions.
