Clouds Darken Over the Smokestack Sector

"Obviously if the economy worsens from here by a tremendous amount, I think more and more companies will start to take a closer look at their dividends," he says. "A lot of companies don't like to cut their dividends, but if you're in a different situation and you have to preserve cash, you need to take these steps."

Another reality industrial firms are facing is that while the government can grease the wheels, it can't pull the economic wagon on its own. As a result, investors taking a look at the industrial space may want to be selective and cautious until there is more clarity on the stimulus plan, who stands to benefit most, and when.

"Just putting the shovel in the ground is going to take some time to happen," says Ben Halliburton, chief investment officer of Tradition Capital Management. "These companies, on a global basis, are announcing their layoffs, announcing their dramatic capex cuts and I don't think the stimulus plan is going to help that right now. And while the government is an important consumer of these products, the private sector is much larger."