Kickstart: Powering infrastructure growth

U.S. infrastructure spending for water and sewer pipes and service lines have had more attention recently, but 2021's infrastructure spending bill and this year's federal inflation reduction act includes billions of dollars to upgrade the electric grid and improve communications systems.

Those investments are fueling interest in companies that make wire and cable systems, connectors and other key parts, such as Atkore Inc., a conduit maker that has now made seven acquisitions in 2022 — on top of two acquisitions in 2021 — and in late October announced a $7.7 million expansion in South Carolina.

On Nov. 9, Harvey, Ill.-based Atkore announced it had purchased HDPE conduit maker Elite Polymer Solutions LLC for $91.6 million.

The company said in late 2021 that it would invest $1 billion on capital expenditures, acquisitions and stock buybacks over the next three years.

That has some Wall Street analysts taking a closer look at the company that has been traded on the New York Stock Exchange for five years.

"Demand for electrical systems and related safety systems is growing rapidly," the website Seeking Alpha noted. "Electricity is central to modern life, and economic growth and greater demand for power are increasing. Atkore is riding this demand trend to new highs, and their revenue and profit has been increasing at a rapid pace."

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For a different look at power systems and plastics, the threat of high prices and a reduced power supply in Europe have had old-school machinery companies building solar power systems to make sure their lights stay on all winter.

During K 2022, injection molding machinery maker Dr. Boy GmbH & Co. KG told PN's Catherine Kavanaugh that it recently added solar to its headquarters site in Germany.

"It was a big investment, but you've got to move in this direction," Boy Machines Inc. President Marko Koorneef said. "Right now, electricity is through the roof. The expectation is that as soon the winter starts hitting, there might be companies that aren't going to survive."

If all that news (and all the news in general the last few days and weeks) makes you feel like you need a break, perhaps you can give yourself a massaging foot bath with a product from a big user of plastics trying to distinguish itself in the health and wellness market.

Our sister paper Crain's Detroit Business has a story on FKA Brands' Homedics line of consumer products as it rolls out a "brand refresh" focusing on its presence in big-box stores.

Homedics executives want to be part of what analysts with the consulting group McKinsey estimated to be a $1.5 trillion global market for health and wellness, with an annual growth rate of 5-10 percent.

The company struggled to take advantage of consumer demand early during the COVID-19 pandemic because it relies on overseas manufacturing (I'm sure a few molders would be glad to step in with some reshoring or nearshoring of plastics processing) but executives said they believe those issues are winding down.