(U.S. Concrete) In a Fox News segment featuring U.S. Concrete CEO Bill Sandbrook and Summit Materials CEO Tom Hill, both guests are asked about projections for infrastructure spending under President Donald Trump. U.S. Concrete saw its stock rise immediately following the election of Trump, who's promises to invest in infrastructure spending and a Mexican border wall have led to a surge in investments for potential suppliers.
Though signs point to an increase in infrastructure spending, Sandbrook notes that no arrangement with U.S. government officials have yet been made regarding the promised border wall. The wall must be approved by Congress before contracts can be outlined, so U.S. Concrete will remain at the ready in case the project begins to develop.
Aside from the wall, Sandbrook expressed optimism regarding Trump's tax plan, suggesting that the reduced regulations and tax burden could boost U.S. gross domestic product by 2 percent. When asked where the money for Trump'sinfrastructure plan would come from, he said that private investors and banks could potentially contribute to subsidize what the government would provide from its own funding.
As of recently, Trump's press secretary Sean Spicer indicated that the President is still intent on following through with his $1 trillion infrastructure plan. The plan has taken a backseat to healthcare and tax reform of late, but the White House has indicated that the project is still very much on their radar. Though Trump raised the idea to lump in the infrastructure plan with his other priorities, the timeline has since been pushed back.
Specific details of the infrastructure plan are not yet ironed out, other than an estimation of $1 trillion in spending over the course of 10 years. Whether or not the plan gets approval in 2017 is still uncertain, but the infrastructure plan would allegedly address the modernization of roads, airports, electrical grids and even broadband.
Nevertheless, as of May 2017, U.S. Concrete stocks are still going strong after an excellent first quarter.