Similar to last year, the top "Investment Heroes" by industry were telecom and cable providers, followed by energy production companies, technology and Internet companies, and energy distribution companies. These four categories comprised 18 out of the 25 companies on the list, and accounted for nearly 80 percent of the total investment.
This year's report adds two new dimensions. The first is an analysis of capital spending trends for the first half of 2016, as compared to the first half of 2014, since investment has weakened in the last two quarters. Many of the top companies on this list show global capital spending down in the first half of 2016. The decline in capital spending is particularly notable in the telecom and energy sectors, most likely as a result of regulatory disruption in the telecom industry and falling oil prices.
Second, the report adds this year a comparison of recent investment trends in the private versus the public sector, in an effort to put the business investment drought in context. PPI finds that government capital spending has fared far worse than its private sector equivalent. In particular public sector spending on long-lived assets such as highways and streets has declined sharply in real terms. Meanwhile, government spending on research and development, the quintessential long-term investment, has far lagged private sector outlays on R&D. This suggests that government policymakers suffer from a worse case of short-termism than corporate executives.
The report concludes with a discussion of the components of a new policy framework to promote long-term private investment, including regulatory improvement. That's especially true in highly-regulated industries, such as healthcare, where layers of rules may discourage investment and innovation, and in telecom, where the FCC is upending its regulatory regime potentially undercutting the incentives for capital investment.
Another policy initiative designed to foster long-term, patient investment in the U.S. is pro-growth tax reform that closes inefficient and inequitable loopholes, lowers the corporate income tax, and provides incentives for investment in intangibles. PPI also urges Congress to adopt a capital budget, in order to make it easier for the federal government to make long-term investments.
For full report click here.
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/ppi-releases-fifth-annual-report-ranking-top-25-us-companies-investing-in-americas-future-300342235.html
SOURCE Progressive Policy Institute