Donald Trump’s election victory has boosted sentiment in the US construction industry.
Shares of building firms jumped on the morning following the historic political win, reports MarketWatch. Vulcan Materials, which makes cement and asphalt, saw its shares rise 10 per cent, its biggest one-day increase since 1972, while Martin Marrietta Materials also saw its shares jump 12 per cent.
Bill Sandbrook, CEO of US Concrete, told CNN that he voted for Trump in the belief that he had a better plan to fix the USA’s infrastructure.
“There hasn’t been enough political will to increase funding. Washington needed an outsider and oversized personality to not just talk about infrastructure but to get it funded and enacted,” he comments. “It’s not going to be a cakewalk. But I’m optimistic.”
The firm currently expects to generate $1.2 billion in sales this year, providing materials to construction firms in San Francisco, New York, Washington DC, and more.
Trump has made headlines with his controversial campaign talk of building a wall along the USA’s border with Mexico, as part of an anti-immigration stance. The President-elect, though, has also spoken of boosting public infrastructure spending, fixing roads and bridges.
Confidence in the USA’s home-building sector was also holding steady in the run-up to the election, with the National Association of Home Builders’ latest index ranking at the same positive level in November as the previous month.
“With most of our members responding before the November elections, confidence levels remained unchanged as they awaited the results,” says NAHB Chairman Ed Brady, a home builder and developer from Bloomington, Ill. “Still, builder sentiment has held well above 60 for the past three months, indicating that the single-family Housing Sector continues to show slow, gradual growth.”
“Ongoing job creation, rising incomes and attractive mortgage rates are supporting demand in the single-family housing sector. This will help keep housing on a steady, upward glide path in the months ahead,” adds NAHB Chief Economist Robert Dietz.