After passing the Tax Cuts and Jobs Act, President Donald Trump issued an infrastructure agenda that never resulted in legislation. Should he win re-election, Trump could push for a package targeting surface transportation improvements—measures to repair roads and bridges—along with airports and other critical infrastructure. Democratic candidate and former Vice President Joe Biden, by contrast, has called for an ambitious plan to fund traditional infrastructure projects while also investing heavily in clean power and energy efficiency.
If implemented, Biden's expansive plans could accelerate the push for energy efficiency and reductions in greenhouse gas emissions—a secular trend that would affect companies specializing in air compressors, rail, commercial aircraft, electric vehicles, and industrial gases.
The ultimate shape of either candidate's infrastructure plan would depend heavily on the balance of power in the Senate.
Regardless of which candidate wins the presidential election, Jason Adams, portfolio manager of the Global Industrials Equity Strategy, believes some type of infrastructure bill is likely—which could be a boost to machinery and construction companies.
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