How the Election Could Impact Certain Markets
We've looked into how Donald Trump's election victory could affect the promotional products industry in the past through his proposed tariffs and desire to bring manufacturing jobs to the U.S. While these policies could impact the industry as a whole, it's important to look into how President-elect Trump's tenure in the White House could impact industries that many distributors consider to be their biggest markets.
According to Market Watch, health care is one of the most vulnerable sectors in President Trump's U.S. If he repels President Obama's Affordable Care Act, as he promised during his campaign, it would leave many without health insurance.
However, Trump was more lax on regulating pharmaceutical prices than Hillary Clinton claimed to be during the campaign. Because of this, some distributors may want to focus more on clients in the pharmaceutical industry.
Another industry that likely will see a boost under Trump is energy—most notably the coal industry. However, alternative-energy companies, like solar power companies, don't have as positive of an outlook.
Finally, should Trump make good on his plan to increase military spending, defense and aerospace industries will see an increase.
"We can expect the Pentagon can now view Trump as the guarantor of the extra [approximately] $25 billion in funding that is in the current [fiscal year 2018] plan, but we would lose under sequester to keep funding flat with an elevated [fiscal year 2017]," Robert Spingarn, an analyst for Credit Suisse, told Market Watch.
What do you think? Do you anticipate shifting your client base at all in the years to come? Why or why not? Let us know in the comments.