From Investing.com: 2024-11-10 04:00:00

As the U.S. presidential race unfolds, former President Trump could return to the White House, leading to potential policy shifts impacting machinery and construction sectors. Tariffs, immigration policies, and regulatory changes under a Trump administration may reshape industries, with implications for machinery stocks and labor shortages in construction.

Trump’s emphasis on tariffs as a policy tool could affect machinery companies with global supply chains and international sales exposure. Companies are better prepared to manage cost increases compared to 2018, implementing strategies like tariff surcharges. Stricter immigration policies could lead to labor shortages in construction, especially in southern states heavily reliant on immigrant workers.

Regulatory policy shifts under a Trump administration may have mixed impacts, affecting renewable energy projects like wind and solar infrastructure while potentially easing permitting for machinery companies involved in infrastructure projects. With Republicans possibly controlling Congress, Biden’s spending initiatives could face scrutiny, impacting sectors reliant on public funding for projects.

Investors may face uncertainties with a potential “red wave” scenario, impacting machinery stocks and equipment rental companies tied to large project growth. Construction firms could face risks from immigration policy changes, while firms with diversified portfolios across energy sectors may be better positioned to navigate shifts. Local transportation investments in states like Arizona and South Carolina could boost regional construction demands.



Read more at Investing.com: What a second Trump presidency could mean for the machinery sector: Barclays By Investing.com