The United States Interstate Highway System is in need of infrastructure repairs. The timing is just right because the United States is in need of a jobs program too. A long term, long overdue investment into the United States infrastructure from transportation, to electric grids, to sewers is coming. Savvy long term investing in United States companies able to provide products and services for infrastructure repairs will reap rewards through the recession and for years to come.
Transportation, the Interstate Highway System, and the United States Infrastructure
All infrastructures, transportation included, need maintenance and replacement. The United States transportation system is no exception. The initial components of the United States Interstate system are sixty years old. It was championed by President Eisenhower who experienced a pre-interstate trip of several weeks by military truck convoy from the East to West Coast in 1921. The United States rail system dates back to the 19th century. Some bridges, like the one in Minneapolis, are falling down.
An efficient transportation system not only benefits the nation, but creates and maintains jobs. Hydroelectric dams provide non-polluting electricity. Mass transit systems save time, energy, and urban space. Modern, well maintained, electrical grids provide the electricity that modern life depends upon without perpetual brownouts.
Fiber optic, as well as old copper wire, telecommunications infrastructure have changed the speed of world communication. United States competitiveness depends upon continuing updates and maintenance to its infrastructure.
The Economic Crisis, Politics, and Long Term Investing in the United States Infrastructure
Over the years much needed updating and maintenance of the United States infrastructure went begging as tax breaks were handed out or money went for military spending and other hot issues of the day.
However, the dismal economy and the need to get people back to work are the issues of today and politicians want to be seen dealing with these issues. An possible ideal solution already being proposed by the Obama transition team will focus on the rebuilding of the United States infrastructure.
Long Term Investment in Companies Involved in Infrastructure Improvements
Infrastructure includes roads, bridges, hydroelectric dams and irrigation systems, railroad mass transit systems, airports, the entire air traffic control system, concrete, steel, fiber optics, computer systems, satellite systems, electrical grids, water and sewer systems, and more.
So, it’s time for a little homework. It is likely that at some level, work on rebuilding the United States infrastructure will be bid on in such a way as to prevent the money spent from going overseas. Foreign owned companies will probably need to manufacture in the United States to be involved in United States infrastructure improvements. So look for US companies and foreign companies doing substantial manufacturing in the United States.
There are two approaches here. One is very generic. There will be lots of cement poured with steel rebar. Thus any well-run company making Portland cement or a modernized, efficient steel company will be a good long term infrastructure investment bet. A less obvious but strong infrastructure investment might be with a company like 3M that creates the coatings for many road signs.
The non-generic approach has to do with anticipating a need and finding and investing in the company that provides the solution. With the continuing issue of homeland security, a computer program that improves the scanning, cataloging, and tracking of cargo in and out of US ports could be a winner. Those interested in long term investing in the US infrastructure are invited to do the research, buy the stock, and possibly prosper for years to come.