Stocks classified under the industrials sector include those with operations in aerospace and defense, industrial machinery manufacturing, lumber production, construction, waste management, and cement and metal fabrication. Performance of industrial stocks is heavily reliant on the supply and demand for building construction materials in residential, commercial, and industrial real estate markets. The industrials sector is somewhat cyclical; during periods of economic contraction, companies often put expansionary plans on hold and produce fewer goods, lowering the demand for industrial companies’ products and services.
