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Although the shortage and rising prices of iron ore compelled the machinery industry to cut back production early this year, the supply of used iron has incentivized companies to manufacture efficient power and hand tools, advanced and automated hardware, machinery, and related equipment to meet the surging demand from the resumption of industrial activities. Also, efforts to address the shortage of new iron supplies and the passage of the bipartisan infrastructure bill should drive the growth of machinery manufacturing companies in the coming months. The global industrial machinery market is expected to grow at a 3.6% CAGR to $835.34 billion by 2027. So, both HON and ABB should benefit.
While HON’s shares have declined by 1.5% in price over the past month, ABB has surged 3.5%. ABB is a clear winner with 8.5% gains versus HON’s negative returns in terms of their past six months’ performance. But which of these stocks is a better pick now? Let us find out.
