Tom’s Thoughts on Manufacturing Investments Based on Infrastructure Plans
Transcript:
Easan Arulanantham:
The next question comes from Jean.
It’s about the US infrastructure bill, do you think that the US could have a manufacturing Renaissance in the near future with all the money that’s been planned?
Tom Vaughan:
Yes, I do with some caveats.
So for example, when you really look at kind of what is being planned? The answer is yes, I mean, they’re gonna put $50 billion into trying to get semiconductors up and running, they’re trying to get at one of the things we definitely learned from the pandemic, is that some of these things need to be made here in this country, somehow, some way, you know, the PP, you know, equipment and those types of things that are out there, semiconductors are one of those pieces too. And so with the money coming in, and with the kind of the path and the things that we’ve learned from the pandemic, we could definitely see a renaissance in kind of the manufacturing portion of the economy.
Having said that, the government, it doesn’t always work, right. I mean, one of the issues that does happen, it’s sometimes just throwing money at things, and then having these these massive issues that you’re trying to deal with. And so they’re very complex, does it work? You know, does it work to have the government pushing things out? At the moment, you’re seeing movement in the price? Alright, so the stock market is feeling good about the possibility. And so that is important, the stock market can be a really good harbinger of what’s going to happen going forward, but it’s not right every time.
So that is why we’ve actually started to move towards some of those stocks, because we are seeing some motion coming from there. And so I do feel like that’s a strong possibility. But I would keep that on a bit of a short leash to see what actually happens and watch the price. These manufacturing companies or, you know, as a whole, even semiconductors and those types of things, you know, what happens to price how’s it doing, if they all start to fall apart, you know, then again, the market is 12 to 24 months ahead of what actually ends up happening most of the time and so that that would be a good way to really track and right now that market is telling us things are gonna get a lot better in that category. So that could be could be a great area. This is a really interesting time for a lot of the things that are going on.