Thread
The economy is trash.

Stocks are jumping off a cliff.

Tech is being annihilated.

However, one industry is booming by 116%.

Here's an overview of the most under-appreciated and unheard-of part of the American economy.

Oh yeah, and they can also exceed FAANG returns.

๐Ÿงต๐Ÿ‘‡
It seems like everywhere you go, you hear the same phrase being repeated over and over again: "American manufacturing and industry has collapsed".

This is plain false.
Auto manufacturing slowed down HARD during 2008 but is experiencing a resurgence due to Tesla and other foreign EV manufacturers.

Most of the public has generalized this to include industrials even though it is false.
American industry is thriving and experiencing an unreported boom due to supply chain disruptions in China.

Business leaders are reshoring and onshoring America and hundred-year-old firms are innovating for a bright new future.
Why it matters: American manufacturing has the opportunity to become the new engine of growth as this recession deepens

China's supply-chain problems have forced the business world to come back to America to hedge.
"The construction of new manufacturing facilities in the US has soared 116% over the past year, dwarfing the 10% gain on all building projects combined."

www.bloomberg.com/news/articles/2022-07-05/us-factory-boom-heats-up-as-ceos-yank-production-out-of-ch...
These firms are innovative as Meta, Tesla, and Google as they innovate in solar, waste, materials, fluids, and artificial intelligence.

They're reinventing what the factory looks like and shifting it away from a dinghy and loud place to a quiet and sleek place.
These firms don't take out super bowl ads, they don't name stadiums, and they aren't on CNBC or the cover of WSJ bragging about their progress.

They work in silence and outperform FAANG stocks by being ridiculously profitable.
If they were to disappear most of the world would come to a halt.

Plus, they also perform well during recessions.

For some reason, most of America has this idea that manufacturing has been kicked off its thrown and a digital king has been crowned.
This couldn't be further from the truth, instead digital and manufacturing share the crown of wealth creation like the Consuls of Rome.

I held this idea for a long time until I read more into American industrials and manufacturing.
For example, $CWST or Casella Waste Systems are changing what waste means by turning waste into energy with new silos that can turn manure and food waste into electricity in a process known as anaerobic digesting.
Casella has outperformed all FAANG companies with a 60% CAGR in total shareholder returns over the past five years.

And this trend shows no sign of stopping.

They also beat the S&P 500.

13% v. -11%.
As Apple pursues cookie-cutter innovation and Meta copies Chinese tech companies, relatively unheard of family owned industrial firms are turning literal shit into energy.

Which of the two kinds of firms do you think will create the most wealth in the future?
The bottom line: Stop looking at just tech for innovation and remarkable returns.

American industry has been here and it is going to shine during this recession.

Recessions are, historically, where industrials shine the most.
I'll be covering these firms more in the future when I find them as they're extremely interesting and are generally doing pretty well given current market conditions.

They aren't my range of expertise so I'll be learning more about them with you.
Disclaimer: This is financial advice is any capacity; just a thesis of mine.
Hey @JoshuaSteinman and @StevenGlinert, I bet you'd love this.
If you found this thread useful please give the first tweet linked below a RT.

And follow me @BowTiedRobin.


Mentions
See All