The basic materials industry has been recovering from the COVID-19 pandemic-related supply chain disruptions since last year with increasing demand as manufacturing and industrial activities resumed. In addition, the passage of a trillion-dollar infrastructure bill last year, spending from which will be directed to public works projects, including highway, bridge, freight, port, and public transit expansions and repairs, should drive demand for basic materials in the coming months. Also, rising commodity prices should benefit basic materials companies.
Earnings for companies in the basic materials industry have grown 15% per year over the last three years, while revenues have grown at 9.6% per year, indicating higher sales and subsequently increasing profits.
