GS Sustain: The Reliability Imperative

The report identifies a major secular shift as corporates prioritize supply chain and infrastructure redundancy ('The Reliability Imperative') to mitigate geopolitical, physical, and power-demand risks. This transition is expected to fuel a multi-year investment supercycle benefiting infrastructure, technology, and automation providers.

Key Takeaways

• 1.Corporates are increasingly investing in redundancies (fixed assets/inventory) due to geopolitical, supply chain, and power demand risks.
• 2.A 1% increase in gross fixed assets or 10% increase in inventory levels across publicly traded companies is estimated to require $400 billion in incremental investment.
• 3.We maintain a bullish outlook on sectors enabling redundancy, such as Power/Water Infrastructure, HVAC, Cybersecurity, and Skilled Labor.

Table of Contents

• What corporate inventory and fixed asset redundancy could represent
• Sector-level trends
• Potential implications to corporate returns
• Redundancy, Reliability and key verticals to watch
• Proactive vs. Reactive investment