When President Trump unveils his budget on May 23, it is expected to include a $200 billion investment in infrastructure spending over 10 years – part of a larger $1 trillion plan – according to a recent report from Bloomberg.
"The administration’s aim for the funds … is to provide incentives for at least $800 billion of infrastructure investment by the private sector and state and local governments," according to the article, whose source was a senior Office of Management and Budget official speaking on the condition of anonymity.
The infrastructure plan will be designed to encourage state and local governments, as well as private companies, "to secure their own funding and financing rather than relying on the federal government," writes the article's author, Mark Niquette.
"Trump promised throughout the campaign and since taking office to invest $1 trillion over 10 years to upgrade roads, bridges, airports and other assets," Niquette writes. "The $200 billion in the budget being released next week would be mostly spent between years two through six in the 10-year budget window, the official said, adding that it would be offset to avoid adding to the deficit. The official didn’t specify how."
Distributors should be thrilled with the investment if the budget get passed. Respondents to our annual Industry Outlook Survey listed Trump's ability to follow through on his infrastructure campaign promise as one their top concerns for 2017.
And in recent earnings calls with analysts, HD Supply specifically mentioned an increase in infrastructure spending across the U.S. as beneficial to the company's top and bottom lines.
"HD Supply Waterworks and construction and industrial are very well positioned to benefit from incremental infrastructure spending," CEO Joe DeAngelo said in December. "We believe benefit from the spending would likely occur late 2017 or beyond. Like most, we will continue to monitor this topic."
