Although supply chain issues and labor shortages have been significant challenges for the industrial sector, the reopening of economic activities aided industrial companies' performance last year. Also, expanded e-commerce facilities, fulfillment centers, bulk warehouses, and the demand for industrial real estate further indicate the sector’s growth this year.
The U.S. industrial market generated sales volume that was 47% higher than the previous year. In addition, the sector’s long-term production and warehousing investment and strong consumer demand should further fuel its growth. Investors' interest in industrial stocks is evidenced by the Vanguard Industrials Index Fund ETF’s (VIS) 13.7% gains over the past year.
