U.S. Construction Companies On The Rise

in a report by Zacks.com, the construction industry in the United States appears to be on the rise as multiple companies are outperforming expectations. Investors are optimistic about the industry, with an economic boom set to take place as a result of increased infrastructure investment promised by President Trump. One factor investors are worried about are the looming rate hikes that will impact mortgages and may deter certain families from buying houses, however, income increases could negate this. Short term housing figures would suggest the housing market is struggling. But in the big picture, things look quite the opposite. In fact, “Sales of new homes rose 12.2% in 2016 from a year earlier − marking the best in a decade. Sales growth during 2016 was majorly boosted by affordable mortgage rates and a steadily improving job market.”Construction stocks to watch out for according to this article are: Fluor Corporation (FLR), Summit Materials, Inc. (SUM), and Lyon William Homes (WLH). All of which have been exceeding expectations and look to continue the pattern as government begins to play a larger role.

Selon un récent article de la National Law Review, Donald Trump a une très bonne chance d'influencer positivement l'industrie de la construction en décrivant des projets de développement ou de réaménagement des infrastructures, de l'éducation et des services de santé. Bien que cela ressemble beaucoup à la «loi américaine sur le redressement et le réinvestissement de 2009», le plan de Trump pour financer ces projets consiste à faire participer les investisseurs privés en utilisant les crédits d'impôt comme levier financier. En tant qu'ancien homme d'affaires immobilier, il y a des raisons importantes de croire que des changements se produiront dans cette industrie. Par exemple, M. Trump a dit que 25% du coût d'une maison est directement dû à la réglementation, et il a l'intention de réduire ce nombre à 2%. En outre, les réductions d'impôts promises aux riches peuvent signifier plus d'argent peut être dépensé sur les projets de construction et d'investissement, qui seraient clairement bénéfiques pour l'industrie de la construction. Malgré cela, les problèmes sous-jacents dans l'industrie de la construction doivent être résolus si l'on veut atteindre une véritable prospérité. Il y a encore une pénurie de main-d'œuvre qui ne sera aggravée que par la déportation prévue d'immigrants illégaux et où l'espace est également à un point bas. Un autre problème actuel face à la reconstruction de l'Amérique est les différends commerciaux internationaux. Il n'est pas fan des multiples accords de libre-échange que l'Amérique a mis en place. Trump prévoit renégocier et / ou rompre les liens avec plusieurs des traités auxquels il est actuellement associé, comme l'ALENA et le PTP. Si cela devait se produire, les prix des matériaux en Amérique augmenteraient, rendant plus difficile pour les entreprises de construction d'augmenter leurs profits. Les politiques d'atouts vont-elles apporter de grands changements à l'industrie de la construction? Très probablement oui. Cependant, il reste à voir si ce sera aussi bon qu'il le dit.
Sources: (Zacks.com)
(The National Law Review)

According to a recent article by the National Law Review, Donald Trump has a very good chance of positively affecting the construction industry by outlining plans to develop or redevelop infrastructure, education and health services in order to get more Americans working and access to public goods. Although this is very similar to the ‘American Recovery and Reinvestment Act of 2009’ Trump’s plan to fund these projects is by getting private investors involved using tax credits as leverage. As a former real estate businessman, there is significant reason to believe changes will occur in that industry. For example, Mr. Trump has said 25% of the cost of a home is directly due to regulation, and he has plans to reduce that number to 2%, In addition, tax cuts promised to the wealthy may mean more money can be spent on building projects and investment, both of which would clearly benefit the construction industry. Despite this, underlying issues in the construction industry need to be solved if true prosperity is to be reached. There is still a shortage of labor which will only be made worse through the planned deportation of illegal immigrants and lot space is also at a low point. Another current problem facing the rebuilding of America is international trade disputes. Not a fan of multiple free trade deals America currently has in place, Trump plans to renegotiate and/or cut ties with many of the treaties they are currently involved with such as NAFTA and the TPP. If this were to take place, material prices in America would increase, making it harder for construction companies to increase their profits. So will trumps policies bring many big changes to the construction industry? Most likely yes. However, it remains to be seen whether it will be as good as he says it will be.