Bank of AmericaBofA Securities analyst Dimple Gosai detailed the rousing success of the U.S. Inflation Reduction Act during its first year. “As the one-year anniversary of the Inflation Reduction Act (IRA) approaches, its impact is becoming more evident. Over 270 new clean energy projects have been announced, with investments totaling $130-billion. Of this investment, half was earmarked for new renewable energy projects, representing 25 GW of capacity - enough to power over 22 million homes. Alongside the IIJA and CHIPS Act, the IRA has contributed to a doubling of real manufacturing construction spending since late 2021, boosting US GDP growth by 500 bps since Q2 of the previous year and driving manufacturing employment to its highest level since 2008. The clean energy sector now accounts for more than 40% of all energy jobs in the US, with a positive shift towards greater gender diversity as women represent over half of the energy jobs added in 2022.”
Cameco Corp and Nutrien Ltd. were listed among the 40 North American companies expected to benefit from the ongoing stimulus. Other potential investments most likely of interest to Canadian investors include Ford Motor Co., Eli Lilly & Co., Caterpillar Inc., General Electric Co., Honeywell International Inc., CF Industries Holdings, Linde PLC and Sunrun Inc.