Part two of the 5 keys to the markets
Industrial renaissance is fueling a new era of growth
From the American heartland to the arid desert, an industrial renaissance is underway. Capital expenditure (capex) projects are popping up across the U.S., boosting local economies and creating opportunities for select companies.
Taiwan Semiconductor Manufacturing Company’s $65 billion build-out of a production facility in Arizona is one notable example. It is expected to create thousands of manufacturing and construction jobs. But for every megaproject, there are dozens that remain under the radar. Eli Lilly, for example, is investing $4.5 billion to create a new drug development and manufacturing center that could bring hundreds of jobs to Indiana.
Investing in America: Grassroots manufacturing has surged
To be sure, this activity is happening outside America, too. The build-out of data centers, rising travel demand and the development of new energy sources are creating growth opportunities for Europe’s industrial titans. In emerging markets, the nearshoring movement is leading to a rewiring of supply chains and the construction of new trade hubs.
“These trends represent multi-decade investment opportunities, and we are only in the early innings,” says Lara Pellini, equity portfolio manager for The New Economy Fund®. “Industrial powerhouses in the U.S. and Europe are solidifying their foothold in areas ripe for long-term global growth.”