As investors get ready to close out 2016 and move into 2017, President-elect Donald Trump's proposed infrastructure policies are reinforcing some of the work that the Obama administration began laying the ground work for in 2015.
As U.S. Concrete (USCR) CEO William Sandbrook noticed, Trump mentioned infrastructure in the first few minutes of his acceptance speech. "He didn't talk about racial healing, he didn't talk about ISIS, he talked about infrastructure, meaning it's on the top of his mind," Sandbrook told TheStreet in a recent phone interview.
Building on the FAST Act, which represented the first investment in infrastructure since 2008, Trump plans to pour $550 billion into the infrastructure. The president-elect says he wants to "build roads, highways, bridges, tunnels, airports and railways of tomorrow." Trump also reaffirmed, but slightly amended, his plans to build a wall along the U.S./Mexico border, saying that a fence would be acceptable in certain areas, but a wall is necessary in other location on CBS' "60 Minutes" Sunday, Nov. 13.
With this in mind, the outlook for the companies that would be responsible for constructing the infrastructure and transportation "of tomorrow," are presented with opportunities for upside growth.
Furthermore, Trump's plans to make America energy independent, which include building pipelines and opening onshore and offshore leasing on federal lands, only appears to strengthen this infrastructure play.
However, on Friday, the Obama Administration and the U.S. Department of the Interior issued new guidelines for the offshore oil and gas leasing plan for 2017 to 2022. The program focuses on oil and gas development in the Gulf of Mexico, while areas in the Arctic will not be included.