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Mr. Grant started his Sunday morning with some housework—taking out the trash, mowing the lawn, cleaning the pool, changing light bulbs, installing cabinets, and fixing the air conditioner. It was a productive day until 2:00 PM when his shoulder cushioned a fall off his ladder, requiring a trip to the ER. Making matters worse, Mr. Grant's normal route was getting re-paved, forcing him to take the long way through a $5 toll road to the hospital. The bad news: He needed an MRI and a shoulder specialist—the closest was an hour's plane flight away. Early Monday, he took the train to the airport and boarded a jet. At the hospital, he got his MRI, and the doctor told Mr. Grant his shoulder would be fine in time. Mr. Grant celebrated with a shopping spree through the airline's gift catalogue, fixing Post-it notes on everything he wanted to buy.
To Fisher Investments researchers and analysts, this is more than a simple anecdote with a happy ending—it's an illustration of the importance of Industrials products in our everyday lives. Every event, action, and item in Mr. Grant's travails used products and services, from the Industrials sector. Reference Table 1.1 in Fisher Investments on Industrials to see some of the Industrials products and services Mr. Grant encountered.
What does the Industrials sector look like from a high level? Because it has many diverse industries, it's split into three broad categories (as defined by the Global Industry Classification Standard [GICS] classification system—See Fisher Investments on Industrials: GICS for more information). Firms in these categories primarily serve governments and corporations, but in some cases serve consumers as well:
- Capital Goods
- Transportation
- Commercial Services & Supplies
Capital Goods, the largest sector component, consists primarily of firms involved in production and making machinery and industrial goods including airplanes, tractors, power generators, and defense and transportation equipment. Globally, Fisher Investments' research has found that there are over 4,300 publicly traded Capital Goods firms.*
Transportation firms, the second largest weight within the sector, mostly ship goods rather than make them. Fisher Investments found that most forms of transportation are included in this group, including planes, trucks, ships, and railroads. Globally, there are nearly 900 publicly traded Transportation firms.**
For more information or to purchase Fisher Investments on Industrials, click here.
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