Infrastructure Spending in the U.S.
President Biden wants to spend $2 Trillion on infrastructure in the United States. From roads, bridges, airports, and railways to Green Energy, 5G networks and power grids lies an enormous need for the nation. The United States has been ranked by The American Society of Civil Engineers as a D+ and has warned that “the deterioration of our infrastructure is harming our ability to compete in the economy on a global scale”.
If this next spending bill passes, the boost in sales and earnings for a wide range of leading U.S. companies in the basic materials sector could benefit greatly. Companies that produce building materials such as concrete, cement, and sand, and gravel could benefit highly from any increased expenditure on transportation infrastructure.
3 Basic Material Stocks to Keep on your Watchlist
Martin Marietta Materials NYSE: (MLM) is a producer of aggregated products (gravel, sand, and crushed stone) used for the construction of residential, non-residential, and infrastructure projects. The firm is categorized into aggregates business, cement business, and magnesia specialties business. Its cement business creates Portland and other specialty cement. Its magnesia specialties business manufactures and markets magnesia-based chemical products used in industrial, agricultural, and environmental applications, and dolomitic lime distributed to consumers in the steel industry.
Cleveland-Cliffs NYSE: (CLF) is a large producer of iron ore and steel products. The company has upstream and downstream operations. It produces both steel solutions and customized iron ore pellets. Its segments include steel and manufacturing and mining and pelletizing. Its steel and manufacturing segment is a producer of flat-rolled carbon, stainless and electrical steel products, primarily for the automotive, infrastructure, and manufacturing and distributors and converters markets. The firm’s steel and manufacturing segment includes subsidiaries that provide custom solutions with carbon and stainless steel tubing products, engineered solutions, tool design and build, hot- and cold-stamped steel components, and complex assemblies. Its mining and pelletizing segment is a supplier of iron ore pellets to the North American steel industry from its mines and pellet plants located in Michigan and Minnesota.
Caterpillar NYSE: (CAT) is a manufacturer of construction and mining equipment, diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives. The company operates through its main segments, including construction industries, which is engaged in supporting customers using machinery in infrastructure, forestry, and building construction; resource industries, which is engaged in supporting customers using machinery in mining, quarry, waste, and material handling applications; and energy & transportation, which supports customers in oil and gas, power generation, marine, rail, and industrial applications.