The Zacks Manufacturing – Construction and Mining industry is currently facing challenges due to rising operating costs, supply-chain disruptions, and a tough labor market, placing the industry in the bottom 25% of Zacks industries with a rank of #184. Despite this, companies like Caterpillar Inc. (CAT), Terex Corporation (TEX), and Hyster-Yale, Inc. (HY) are well-positioned to benefit from increased infrastructure investment in the U.S. and demand from the energy transition trend.
As of May 2026, the ISM Prices Index indicated that input costs have risen for 20 consecutive months, sitting at an elevated 82.1%. Meanwhile, the manufacturing index from the Institute for Supply Management showed a rebound to 54%, signaling continued expansion. Industrial production saw a 1.7% increase over the past year, resulting in cautious optimism despite ongoing geopolitical uncertainties.
Total industry growth over the past year stands at 135.5%, significantly outperforming the broader sector’s growth of 28.7% and the S&P 500’s 21.6%. Looking ahead, substantial government investments in infrastructure and a shift towards zero-emission technologies are expected to bolster demand for construction and mining equipment.
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