Clusterstock created this interesting chart from a Barclays report about the coming reconstruction boom in Japan, which concludes that short-term GDP declines will ultimately give way to faster GDP growth. (Click image for full size)
What companies will profit from the reconstruction boom? According to Scott Rothbort of StockPickr, there are several:
The first such Japanese company that comes to mind is Kubota (KUB). Kubota is first and foremost known for manufacturing industrial, farm and construction machinery and equipment. To that extent, Kubota’s American competitors would be Deere (DE) and Caterpillar (CAT). Kubota is also engaged in the design and construction of water and environmental systems, which will be in great demand in Japan. Lastly, Kubota fabricates materials, pipes and electrical equipment for infrastructure projects.
Sources:
“CHART OF THE DAY: How Long Could Japan’s Post-Crisis Construction Boom Last?” Gregory White. BusinessInsider, 3/17/11. https://www.businessinsider.com/chart-of-the-day-disaster-economy-gdp-2011-3?r=US&IR=T
“6 Japan Stocks, Funds to Watch” Scott Rothbort. Stockpickr.com, 3/17/11. http://stockpickr.com/6-japan-stocks-funds-watch.html
