America’s industrial rebuild is moving from headline to hardhat. With tariffs in place and national security back at the center of economic policy, capital is flowing into U.S. plants, power infrastructure, and supply chains that serve AI, autos, and advanced manufacturing. The near-term winners are the scale players that can deliver at industrial speed: welders and integrators, mission‑critical distributors, and utility enablers for an electricity-hungry data economy.
Three names stand out from this discussion. First, Lincoln Electric (ticker cited as LEC)—a global leader in welding—benefits as mega‑projects need a “general contractor” to coordinate complex steelwork at scale. Second, WW Granger, a century-old distributor, acts as the industrial hardware store for big jobs, ensuring canisters, fasteners, and equipment arrive on time and in sequence. Third, Hubble (Hubb) builds and aggregates utility products and local operators, a serial acquirer positioned to modernize the grid as AI data centers and electrification lift demand. Add in state incentives and federal nudges, and the setup favors companies that bring coordination, logistics, and network effects to capex-heavy buildouts.
Quick Summary
– In 2017, 85% of wheelbarrows were made in the U.S.; today it’s effectively 0%.
– A shuttered U.S. plant: 240,000 sq ft closed and offshored.
– China produces 32% of global manufacturing; the U.S. is 15%, Japan 6.5%, Germany 4%.
– About one‑third of U.S. imports of lithium batteries, smartphones, and laptops come from China.
– Medicines: 90% of U.S. consumption is imported.
– Tylenol/ibuprofen: China produces 50–60%.
– IBM cited with $150 billion earmarked for U.S. chip manufacturing.
– Kimberly‑Clark plans $2 billion over two years to reshore production.
– States competing with tax relief as long as 10 years to land factories.
– Hyundai building a steel plant in Louisiana underscores onshoring breadth.
Sentiment and Tone (inferred)
– Positive: 60% | Neutral: 25% | Negative: 15%
Top 5 Themes
1) Reshoring for national security and resilience
2) Policy tailwinds: tariffs, incentives, and state competition
3) Industrial buildout scale: welding, coordination, and MRO distribution
4) Grid modernization: utilities shifting from “bond proxies” to growth via AI/data centers
5) Consolidation advantages: serial acquisitions to create efficiency in critical infrastructure
Bottom line: capital, policy, and security are aligned. That’s a powerful trifecta for the companies that can deliver industrial scale.
Rebuilding America – Tariffs, Manufacturing Revival, and Three Stocks to Watch
Introduction: A New Era of American Manufacturing
Welcome, listeners, to another episode of Market Insights Unlocked! I’m your host, and today we’re diving into a transformative moment for the U.S. economy: the push to rebuild America’s manufacturing base through tariffs and government-backed initiatives. This isn’t just a policy shift; it’s a seismic change with roots deep in history, global trade dynamics, and national security concerns. We’re also unpacking three companies poised to benefit from this resurgence, as highlighted in a recent discussion with David “Doc” Irrig, CEO of Marketwise. So, grab your coffee, settle in, and let’s explore how tariffs are reshaping the American economic landscape—and what it means for your investments.
This story starts with a stark reality: the decline of American manufacturing. As Doc pointed out, just eight years ago, 85% of wheelbarrows were made in the U.S. Today? Zero. Factories like the Ames steel plant in Harrisburg, Pennsylvania, have shuttered, jobs have vanished, and production has moved offshore. With President Trump’s return to office, there’s a renewed focus on bringing manufacturing back—not just for economic growth, but for national security. Whether it’s steel, chips, or even everyday medicines (did you know 90% of U.S. medications are imported?), the vulnerabilities of global supply chains are glaring. Let’s break down the market impact, sector-specific effects, and what investors should do next.
Market Impact: Tariffs as a Double-Edged Sword
Historically, tariffs have been a contentious tool. They hark back to the 19th and early 20th centuries when the U.S. used protective tariffs to nurture infant industries against European competition. Think of the Smoot-Hawley Tariff Act of 1930—while it aimed to shield American businesses, it deepened the Great Depression by sparking global trade wars. Fast forward to today, and tariffs are again center stage. The logic is simple: by taxing imports, particularly from manufacturing giants like China (which accounts for 32% of global manufacturing compared to the U.S.’s 15%), the government aims to make domestic production competitive again.
But here’s the catch—classical economics, as Doc noted, argues against this. Global specialization creates efficiencies. Why pay $30 an hour for labor in the U.S. when you can pay $3 in China? Tariffs disrupt this, potentially raising costs for consumers and risking retaliation. Yet, in a world of geopolitical tensions—think U.S.-China trade spats or supply chain shocks during the pandemic—security trumps efficiency. The market has felt this shift already. We’ve seen volatility in sectors reliant on imports, like consumer electronics, where a third of lithium batteries and smartphones come from China. Meanwhile, the S&P 500 and Dow have shown mixed reactions, with some industrial stocks gaining on the promise of domestic growth, while others lag under fears of higher input costs.
Globally, this isn’t just America’s story. Countries like Japan (6.5% of global manufacturing) and Germany (4%) are watching closely. If the U.S. succeeds in reshoring, it could inspire similar protectionist moves elsewhere—or escalate trade tensions. For now, massive investments are pouring in: Taiwan Semiconductor is committing $100 billion to U.S. chip manufacturing over the next four years, while IBM is pledging $150 billion. These aren’t just numbers; they’re a signal that the government’s push—through tax incentives and regulations—is redirecting capital flows in a big way.
Sector Analysis: Who Wins in the Rebuild?
Let’s zoom into the sectors set to thrive under this manufacturing revival. First, semiconductors are the obvious frontrunners. With AI and tech driving demand for chips, companies like Taiwan Semiconductor are building plants in states like Arizona, spurred by the CHIPS Act of 2022, which allocated $52 billion to boost domestic production. This isn’t just about tech—it’s about securing supply chains for everything from military hardware to electric vehicles (EVs).
Next, traditional heavy industries like steel and infrastructure are getting a second wind. Hyundai is constructing a steel plant in Louisiana, alongside automotive facilities, while companies like Kimberly-Clark are investing $2 billion to bring paper production back to U.S. soil. States are competing fiercely, offering tax breaks to lure these factories, which means local economies in places like Wisconsin and Louisiana could see significant job growth.
Lastly, let’s not overlook utilities and energy infrastructure. As Doc highlighted, the electrical grid—already strained by extreme weather events and rising demand from data centers for AI—is in desperate need of upgrades. Companies involved in utility products and grid modernization are positioned for growth, especially as federal and state funding flows into infrastructure projects.
Now, let’s spotlight the three companies Doc recommended, each tied to this rebuilding theme:
1. Lincoln Electric (Ticker: LEC) – A leader in welding technology, Lincoln Electric stands out for its ability to handle large-scale industrial projects. As new steel and chip plants rise across the U.S., the demand for welding expertise at scale will soar. Unlike smaller, local welders, Lincoln Electric acts as a “general contractor” for massive builds, coordinating complex operations for giants like Hyundai or IBM. Their stock has already seen movement, and Doc’s team suggests it’s worth a deeper look for entry points.
2. W.W. Grainger (Ticker: GWW) – Founded in 1927, Grainger is a distributor of industrial supplies—think bolts, tools, and equipment for big projects. As manufacturing ramps up, so does the need for reliable, on-time supplies. Grainger’s role as a consolidator makes it a steady player, not a flashy growth stock but a “steady Eddie” with nearly a century of resilience. It’s a hardware store for industrial giants, and its longevity suggests durability in uncertain markets.
3. Hubbell Incorporated (Ticker: HUBB) – Focused on utility products and electrical grid solutions, Hubbell is acquiring smaller regional players to create efficiencies. With AI data centers and manufacturing plants demanding more power, and aging grids facing breakdowns (remember Texas in 2021?), Hubbell is well-placed for growth. Doc noted that utilities, once seen as stable dividend plays, are now almost a growth sector due to skyrocketing energy needs.
Investor Advice: Navigating the Rebuild Boom
So, what should you, as an investor, do with this information? First, recognize that government policy is a powerful tailwind right now. When the government pushes regulations, tax incentives, and billions in funding toward a sector, ignoring it is a missed opportunity. Look at these three stocks—Lincoln Electric, W.W. Grainger, and Hubbell—as starting points. Dig into their financials: check revenue growth tied to U.S. projects, profit margins under tariff pressures, and debt levels if they’re expanding aggressively.
Second, diversify within the theme. Don’t just bet on one company; consider ETFs like the Industrial Select Sector SPDR Fund (XLI) for broader exposure to manufacturing and infrastructure. Semiconductors are hot, but they’re volatile—balance them with steadier plays like utilities.
Third, watch for risks. Tariffs can inflate costs, squeezing margins for companies reliant on imported materials. Monitor U.S.-China relations; any escalation could hit markets hard. Also, keep an eye on interest rates—higher rates could dampen growth stocks in utilities or industrials by raising borrowing costs for expansion.
Finally, think long-term. This rebuilding isn’t a 2024 fad; it’s a decade-long project. Patience could reward you with compounding gains, especially in “steady Eddie” stocks like Grainger. If you’re intrigued by Doc’s deeper research, check out Marketwise’s report on American manufacturing’s impact on the dollar and economy—links are in our show notes.
Conclusion: A Call to Rebuild and Reinvest
Listeners, the story of rebuilding America is more than a political slogan—it’s a fundamental shift in how we think about trade, security, and economic strength. Tariffs are back, manufacturing is returning, and companies like Lincoln Electric, W.W. Grainger, and Hubbell are at the forefront. This isn’t just about factories; it’s about jobs, innovation, and reducing our reliance on fragile global supply chains.
I want to hear from you. Are you excited about this manufacturing revival? Are there other companies or sectors you’re eyeing in this space? Drop your thoughts in the comments or send us a message. And don’t forget, investing in times of change requires knowledge and strategy—stay tuned to Market Insights Unlocked for more deep dives like this. Until next time, keep your portfolios diversified, your research sharp, and happy investing!