...June 5, 2024 Caterpillar has secular tailwinds that will help offset pockets of weakness. We believe Caterpillar will continue to benefit from recent legislation, particularly within the U.S., such as the Infrastructure Investment and Jobs Act (IIJA), the Inflation Reduction Act (IRA), and the CHIPS and Science Act (CHIPS). S&P Global economists project nonresidential structures investment will increase 4.8% in 2024 following strong growth in 2023. In 2025, we expect growth to slow, but remain at high levels relative to historical values. Furthermore, we expect moderate growth in residential investment following two years of decline. Caterpillar benefits from its enormous scale and its global reach. Approximately half of the company's machinery, energy, and transportation (ME&T) sales are to customers in North America, which has helped support sales growth in recent years. We expect the company to continue to perform well in the region, offset by weaker economic conditions in Europe and...
