Industrials account for nearly 22% of the US mid-cap segment, based on the S&P MidCap 400 Index, compared with about 8.5% for the S&P 500. This heavier weighting positions mid-caps to gain from an anticipated infrastructure boom. The US Congressional Budget Office projects that infrastructure investment will add US$800 billion to US$1 trillion to GDP by 2033, with significant contributions from transportation, energy and technology-related projects.
US mid-cap industrial companies are emerging as key beneficiaries of renewed policy support for domestic manufacturing under President Donald Trump’s continued “America First” agenda. Measures such as targeted tax incentives, deregulation and subsidies are designed to strengthen US competitiveness, creating opportunities for nimble, mid-sized firms that can adapt quickly to growing demand for American-made goods and infrastructure solutions.
“As key beneficiaries of renewed emphasis on US competitiveness, we believe mid-caps — often nimbler and more adaptive than their larger counterparts — are uniquely positioned to capitalise on growing demand for American-made goods and infrastructure solutions in a reshoring and energy independent economic landscape,” says Dina Ting, CFA, head of global index portfolio management at Franklin Templeton.
