Manufacturing companies producing construction equipment, trucks, building supplies, and industrial software are enjoying strong sales, helped by a backlog of orders created by supply chain bottlenecks during the pandemic and increased demand from new factories under construction. Robust sales of building materials, equipment, and systems are driven by the construction of new factories, particularly those focused on semiconductors, electric vehicles, and renewable energy. Some analysts had been concerned that economic turbulence could cut into sales or diminish profit guidance. Still, strong demand from construction and factory-building projects has helped companies exceed investor expectations. Despite a strong outlook for heavy-duty trucks and engines, orders for new heavy-duty trucks have fallen recently, indicating trucking companies' wariness about 2024 due to higher fuel prices, lower freight rates, rising interest rates, and the threat of a recession.
