Chris Moran, President
From the time Donald Trump was leading in the polls to the time he won the election, US construction-related stocks spiked to a record high. Stock markets were tuned in to Trump’s campaign, and when the president-elect pledged to put millions of Americans to work building America up, they responded avidly. A spike in change in stocks could be seen the world over, spiking in the UK, Ireland, and Spain, and dropping in Mexico. So what does this mean for the construction industry going forward?
Trump Promises Billions of Construction Infrastructure
Trump’s victory speech apparently tickled the ears of many Americans and businesses, especially construction-related business internationally. Trump promises to rebuild our schools, airports, hospitals, and general infrastructure. Like every president elect, we the people wonder whether or not we will see this policy in action. Here’s hoping we do.
Good Idea for the Construction Industry
Theories that say Trump’s initiative will continue to raise construction stocks are not wrong. Construction companies will grow, both public and private, engineering companies will blossom with new potential as Trump fulfills his promise to put people to work. It’s good for business and for the people.
The accumulation of construction projects that have been eagerly awaiting completion will have to come first. Which begs the question: How much time will it take to begin true advancement in America’s infrastructure?
If He Does Address It, Will It Be Good for the Job Market and Construction Market?
Knowing that, quite possibly, the advancement won’t be happening as soon as we had all imagined, will US stocks drop again? Regardless, possible problems in the timeline should be addressed.
The Engineering Ideas are Amazing
Construction wasn’t the only stock to benefit, but engineering companies as well, which is brilliant. After all, engineers will be the foundation of every project. Aecom‘s Chief Executive Mike Burke, as quoted by the Wall Street Journal, touches on the teamwork necessary to make this happen: “Upgrading the infrastructure we have, and advancing what’s necessary to meet the demands of new growth will require national support for alternative delivery methods, including public and private partnerships.’’
Of the trillions the US spends on construction per year, infrastructure evens out at about $150 billion, which Trump suggests he could increase by 60% per year. If his policy withstands the test of presidency, the future of construction is in good hands. As the excitement builds, the world, and the stock markets, watch and wait to see what Donald Trump will focus on building first. Until then, construction-related industries will continue to linger at their peaks.
About the Author
Chris Moran, President,
has over 30 years of experience in all aspects of Building Construction, Construction Program Management and Facilities Operations. This work includes over $5 billion of planning, design and construction of commercial facilities, hotels, multi-family housing, institutions of higher education, and K-12 facilities. Read More…