Since the downturn of the recession and the decline in US spending on public infrastructure we can all agree there has been a steady decline in economic output. Less construction, less production and a decrease in development of roads and rail to name but a few.
The good news – tentatively at least – is that President-elect Trump has promised an increase in infrastructure spending once he takes on his role in Presidency. While the world or politics is never as it seems, there are few that disagree the need to bring our roads, airports and railways up to 21st century standard.
So how can we as consumers take advantage of increased infrastructure spending?
According to a report carried out by the National Bureau of Statistics, China: RBI; Morgan Stanley Research found on quora.com , the increased spending on infrastructure of the Chinese back in the late 1990’s show that China’s infrastructure ” turbocharged the Chinese economy”. With new roads came accessibility, driving up employment and decreasing poverty.
China’s neighboring country Japan set forth a plan to carry out similar plans. However, it has yet to be seen if Japan’s decision to increase infrastructure spending on mainly their exporting facilities will pay off. Only time will tell as we watch how these implementations affect their economic growth. And the world will be watching and taking note.
The UK has also seen a degree of scrutiny concerning increased infrastructure spending since the turn of “Brexit” coming into effects this year. It seems all are taking note of China’s triumph’s hoping to follow suit.
If the US government delivers it promise by strengthening the nation’s infrastructure, this could mean increased labor, a surge in productivity and potential economic growth. Depending on the success rate of this initiative the US could see a positive boost in consumer moral. Spending habits could be on the rise, the private sector initiatives could grow substantially, leading to an overall increase in tax revenues.
This is great news for the average American. But how can one best take advantage of this possibility to ensure they reap the benefits of this upward turn in industrial spending?
Benefits on many levels
By utilizing labor skills and keeping a focal point on competitive position in the industrial sector, one can expect to benefit from this substantial spend. A broader area of expertise is needed to take advantage of the abundant labor needs that will soon be on the horizon. All sectors will see a surge in growth, speed and overall productivity. Initially jobs in the Construction, Construction Management, Civil Engineering and Logistics fields will be the first to benefit, while fields that support the increased work will see a secondary benefits. These field include Manufacturing Techs, Mechanical and Industrial Engineers. Later down the chain we should see bumps in the Service and Technology related sectors.
With sustained spending on roads, highways and airport, comes more spending in other industrial sectors. More money earned means more money to spend. This indicates that all areas will see a rise in supply and demand, thus a more prosperous income for all.
Urbanization and growth make way for faster more reliably services and a shift in social values. Moving with the tide, embracing the challenges and improving productivity will only benefit you and you career.
Hospitals, schools, airports and other public sector facilities will face tough debate over which projects are investment in. Priority will be given to projects that prove beneficial in repairing the country’s economy. Therefore while many areas will undergo a vast change in environment, others can expect less so.
Increase in costs?
But with investment in Infrastructure comes an increase in spending and this may well indicate an increase in costs. It is suggested by Travis Waldron of the ThinkProgress publication that while the private sector may benefit from Trump’s plan, the public sector will pay the price. Water bills set to increase, toll charges on major highways being introduced and even smaller airports implementing service fees.
While it is also suggested by David Davenport, a contributor from the Forbes publication, that Trump loves his debt and has no trouble getting the country into more, does this mean more public debt for the average American? When one inherits the debt of a nation you have to consider what consequences this brings with it. Are we more concerned with spending than actually controlling our spending and if so how will this impact the economic growth in the long run?
Can all this spending mean an increase in taxes, higher costs and lower household incomes?
What this suggests for the average American is that while they may witness an increase in labor, productivity and overall consumption, it is best to keep an eye on their spending habits. Fear that the economic plan will not turn out as prosperous as once perceived throws caution to the wind. Social security plans, medicare and pensions come under scrutiny, mapping our a steady career plan with sensible spending should be a key focus for all Americans.
Time will tell
A prosperous plan is the American objective but time will be the only factor in determining if the American people will reap the benefits.
Regardless of the outcome, it is best to know how you will be affected by this Increased spend in infrastructure. Plan ahead, be prepared for what is coming and learn how you can truly benefit from this increase in government spending. Take risks, know the market and improve all areas of expertise to ensure you profit overall.