The industrial sector is regaining momentum as the resumption in economic activities fuels industrial production. Furthermore, President Biden’s plan to rebuild and reshape U.S. infrastructure, which is due to be voted on in Congress next week, is expected to provide a solid boost to the sector. Therefore, we think it could be wise to bet on fundamentally sound industrial equipment stocks Standex International (NYSE:), Lawson Products (NASDAQ:), Preformed Line Products (PLPC), and LSI Industries (LYTS). These stocks are rated ‘Strong Buy’ in our proprietary rating system. Read on.As the U.S. economy has recovered from the crippling effects of the COVID-19 pandemic this year, the resumption in activities has been driving the industrial equipment sector’s rebound. Equipment manufacturers have seen a significant increase in the demand for their solutions as industries adopt new ways of doing business.

Total industrial output increased by 0.3% in August to 5.9%. Industry capacity utilization rose 0.2% to 76.44%, as compared with respective levels before the pandemic. Investor optimism in the sector is evidenced by the Industrial Select Sector SPDR ETF’s (XLI) 14.4% returns year-to-date.

The U.S. House of Representatives will soon vote on a bipartisan bill to improve the infrastructure spending. This should help drive the market for industrial equipment growth. We believe it would be prudent to place your money on the industrial equipment stocks Standex International Corporation, Lawson Products Inc.(LAWS), Preformed Line Products Company PLPC and LSI Industries Inc. LYTS. These stocks have the potential to benefit from industry tailwinds, and provide solid returns over the short term.

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