By: Scott Davis
We’re updating our forecasts for the top 20 industrial verticals, including estimates for 2022, likely our first “normal” upcycle year. At the margin, the biggest changes since we last ran through this exercise are within consumer verticals. While some consumer verticals remain impaired (i.e. travel/leisure, restaurants, retail), others are showing impressive growth. Notably almost anything touching the resi space, including housing construction, retrofit/remodel and HVAC, as well as others such as life sciences and food/bev. It’s our view that these demand changes driven by work from home and the cities-to-suburbs shift are more structural than temporary, and likely to persist for 5-10 years.