Ernst & Young reminds us in a recent global infrastructure report that the U.S. is expected to add 30 million people to its economy, each decade, right through 2050.
At first this seems terrifying. It means the U.S. will have to generate 30 million net new jobs per decade just to break-even on its employment rate.
Yet while this population growth is a challenge, it’s much more likely to be a huge and highly dependable economic driver for the U.S. going forward.
Particularly, it will be a constant economic tail wind for companies, investors, and workers in the U.S. who align themselves with infrastructure needs.
One strong example of this is rail, as shown below. The U.S. remains horrendously underinvested in rail, even after recent stimulus plans, thus we should expect substantial spending increases in this transportation space over time as economic pressure on the U.S. transportation system builds.
Another long-term no-brainer area for business growth based on demographics is water. Ernst & Young shows how the Western U.S. could face serious water supply challenges by 2025, and remains one of the world’s least efficient water hogs. Expect substantially more U.S. investment here as well whether on the public or private side:
Energy and other transport are another obvious contenders for profiting from future U.S. demographics, and the list goes on.
The point is that there will be a powerful demographic driver for the U.S. economy regardless of where everything else in the world goes, and substantial profits will be available to those who can find and solve the pain points caused by population growth. So good hunting.
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