February 2024
President Joe Biden and former President Donald Trump seemingly don’t see eye-to-eye on issues – however, there is one area poised to thrive regardless of who wins the U.S. election in 2024. Newton’s Deputy Head of Equity Income and Portfolio Manager John Bailer says a desire for a manufacturing renaissance crosses party lines.
Highlights
- President Joe Biden and former President Donald Trump support bringing jobs back on U.S. soil
- Policies such as the IRA Act, IIJA Infrastructure Act and the CHIPS Act all lay the foundation to create more manufacturing opportunities in the states
Whether it’s President Joe Biden versus former President Donald Trump or any Democratic versus Republican candidate, many people perceive opportunities being greater for one political party over another. In an era where political lines can seem more polarized than ever, where do both sides come together? – creating a manufacturing renaissance.
“They both (Biden and Trump) are very populist. They both believe in bringing jobs back to the U.S. and we're seeing huge fiscal stimulus that got passed over the last couple of years finally start to kick in in 2024,” says Bailer.
Policies such as the IRA Act, IIJA Infrastructure Act and the CHIPS Act highlight the idea that a manufacturing renaissance is here for the foreseeable future.
“You're starting to see a lot of infrastructure spending from the IIJA Infrastructure Act that was passed,” notes Bailer. “That money is just starting to get allocated here in the United States. So that should help a lot of the aggregate-oriented producers here in the U.S.”
The CHIPS Act is also helping to bring jobs back home.
“We're seeing a lot of chips manufacturing come back to the U.S. for security purposes …. we want to manufacture the chips here in the United States and that helps a lot of the semi-cap equipment companies,” says Bailer. “We're seeing real opportunities in that space. And that's something that is not going to go away depending on who gets elected.”
Terms:
IIJA- Infrastructure Investment and Jobs Act.
Semi cap-Semiconductor Capital
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