With the election now behind us and the holiday season approaching, American business owners are preparing for the transition to a new presidential administration in January. As President-elect Donald Trump prepares to take office for a second term, business owners will need to know about the opportunities that lie ahead and any potential challenges that could impact the sectors they work in.
Here’s what business owners can expect in the upcoming years:
Business Services
Under Trump’s presidency, the business services sector will likely experience reduced regulatory oversight. Ryan Sweet, Oxford’s chief U.S. economist, said, “The regulatory easing could stimulate growth, allowing companies to reinvest savings into expansion and technological advancements.” However, proposed tariffs might increase operational costs for firms relying on imported materials, potentially impacting long-term strategic planning.
Construction
The construction industry can expect potential growth from Trump’s infrastructure spending plans. Michael Bellaman, CEO of the Associated Builders and Contractors, said in a recent statement: “We are confident that the construction industry will thrive and all workers will be given the opportunity to build America with fewer obstacles.”
However, Trump’s immigration policies, which include mass deportation proposals, may worsen labor shortages, impacting project timelines. Additionally, tariffs on imported construction materials could lead to higher costs.
Consumer Products & Services
The tariffs proposed by Trump could affect the supply chain and increase costs for consumer goods companies. While tax policies may boost consumer spending by increasing household income, companies must navigate the complexities of changing trade dynamics and the potential for retaliatory tariffs.
Energy
The energy sector is poised for a shift towards fossil fuels, with Trump supporting oil and gas expansion. Analysts from Forbes indicate that “Trump’s policies could result in a 4% increase in energy stocks as traditional sectors gain ground.” Renewable energy firms might see a decrease in federal support, even though state and private investments could sustain growth.
Food & Beverage
For food and beverage manufacturers, Trump’s trade policies, which include imposing higher tariffs, could complicate international supply chains, increasing production costs. Tom Madrecki from the Consumer Brands Association emphasized, “Tariffs are taxes and are not paid by foreign nations. They are paid by U.S. consumers and manufacturers.”
Deregulation could reduce operational costs, but changes could also affect food safety and labeling standards.
Healthcare
The healthcare sector faces uncertainties regarding federal health policies and funding alterations. Trump’s focus on deregulation could result in lower costs, but might also positively impact innovation and service delivery frameworks.
Industrials
Industrials, particularly manufacturing, may benefit from lower corporate taxes. However, they must prepare for the impact of heightened tariffs on raw materials. Deregulatory efforts could lower compliance costs but also introduce competitive challenges. Manufacturers that successfully navigate tariff impacts and leverage tax benefits could see significant growth.
Seafood & Agribusiness
The agribusiness sector, which is significant for the U.S. economy, may face export disruptions due to Trump’s tariff policies. The USDA reports a potential “$27 billion decline in foreign sales due to retaliatory tariffs.”
Deregulated agricultural policies might enhance productivity, and technological advancements for sustainable practices could open new markets and increase efficiency, presenting growth opportunities.
Technology
The technology sector could benefit from reduced corporate tax rates and a deregulatory environment. Technology companies could benefit from reduced corporate tax rates and deregulation. However, Trump’s trade stance might affect global tech supply chains. According to PwC, “Navigating expanding AI policy and standards continues to be a challenge for 47% of tech and information leaders.”
Companies focused on innovation and leveraging tax incentives are likely to experience robust growth, particularly in AI and cybersecurity sectors, positioning themselves favorably to capitalize on the increasing demand for technological solutions.
Transportation & Logistics
Transportation and logistics firms should brace for trade route changes and increased costs due to tariffs. While deregulation might reduce operational barriers, global supply chain dependencies could introduce significant risks.
Despite these potential challenges, a renewed focus on infrastructure projects under Trump’s administration may increase government contracts for logistics companies, providing opportunities to expand their services and optimize operations. Additionally, technological advancements, such as automation and data analytics, can enhance efficiency, allowing firms to better navigate the challenges of tariffs and trade variations.
To navigate this evolving landscape successfully, business owners must stay informed, adapt strategically, and seize emerging opportunities. If you’d like to learn how ACT Capital Advisors may assist you with your future exit plans, please reach out today to explore your options.
About ACT Capital Advisors
ACT Capital Advisors is a premier mergers & acquisitions firm representing lower to middle-market companies across all industries. ACT has a 40-year history of deal-making, closing 250+ transactions, and unlocking over $2.5 billion in wealth for its clients. For more information, visit https://actcapitaladvisors.com/.
