US construction industry takes a shine to Trump presidency

Trump has suggested he would boost government construction spending by more than 60%

Nov.November 10, 2016 03:45 PM
Construction cranes and Donald Trump (Credit: Evan Guest)

Construction cranes and Donald Trump (Credit: Evan Guest)

While much of the nation is still trying to understand what a Donald Trump presidency means for the United States, the stock market is giving early signs of how real estate industries are coping.

Stocks related to construction and engineering firms spiked in value on Wednesday, indicating builders around the country are feeling good about the president-elect.

The Wall Street Journal reported that Trump had promised to earmark $1 trillion for select infrastructure projects around the country over 10 years, an expectation that helped drive shares of engineering firm Aecom up 13 percent, as well as its competitor Jacobs Engineering Group by 10 percent.

Material suppliers and machinery manufacturers also saw a surge in stock prices Wednesday, the Journal reported, with shares of Vulcan Materails Co. rising 10 percent and crane builder Manitowoc Go. ballooning 14 percent.

It’s still unclear what specific policies and funding strategies Trump will adopt once in office, but the Journal reported that he’s previously floated a tax credit system to help fund road, bridge and airport work.

He’s also put forward that his infrastructure plan could boost the government’s $1.1 trillion worth of construction spending each year by at least 60 percent.

Outside real estate industries have had much more mixed reactions. In both New York and Los Angeles, brokers and developers expressed either shock or jubilance at the election’s outcome. For Miami, some of real estate’s most prominent figures are expressing optimism — if not outright excitement. [Wall Street Journal]Sean Stewart-Muniz

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