Where the Obama Stimulus Plan Helps Tech

Much has been written about the infrastructure aspects of Obama's stimulus plan. Clearly, fixing roads, federal buildings and schools will provide much needed work for construction workers suffering through a crash in the housing market.

The Obama team has, however, been shrewd enough to understand that a stimulus package for the nation needs to help a broad swath of industries. As a result, they have added a bit of high tech to their plans.There are four main areas where tech is involved:

• improve efficiency of the health care industry
• modernize schools
• develop a green economy
• ease congested traffic

Let's look at each in turn and see how it benefits tech.

Improve efficiency of the health care industry

This means software - software for creation and sharing of medical records between doctors, hospitals and insurance companies, software for managing prescriptions, software for tracking treatment regimens, etc.

At the heart of these systems there will be databases. That will favor companies like Oracle (ORCL), Microsoft (MSFT) and IBM (IBM). Software development could involve the same companies just listed as well a selection of companies more focused on the health care vertical such as Cerner (CERN), Eclisys (ECLP), McKesson (MCK), etc.

Modernize schools

Installing high speed networks, broadband connections to the Internet and hanging more PCs and servers on these new networks will certainly generate business for companies like Cisco Systems (CSCO) as well as the PC companies like DELL and HP (HPQ). Going further back into the supply chain, this will also generate business for the semiconductor firms that supply these manufacturers. Software will be needed for all these PCs and servers and Microsoft (MSFT) is a likely beneficiary. Finally, there will be work for the local technicians who develop the system designs and perform the installation.

Develop a green economy

Make public buildings more energy efficient - this mostly benefits the building trades and building materials industries but there may very well be engineering opportunities in improving on current materials and practices.

Develop, refine and deploy alternative energy sources - opportunities in this area range from deployment of wind farms to refinement of fuel cell and battery technologies to basic research on alternative energy sources we haven't even thought of yet. There is a range of companies that might benefit from these kinds of initiatives ranging from large caps like General Electric (GE) to smaller players like Fuel Cell Energy (FCEL) or even the currently out of favor solar stocks.

Ease Congested Traffic

Creating “smart” highways that alert motorists to congestion and help re-route automobiles to keep traffic flow smooth will require sensors, computers, networks (most likely wireless) and electronic displays. This should create work for electronics and software engineers as well as the technicians responsible for installation and testing.

There are suggestions that light rail mass transit could play a part. This would benefit workers ranging from steel company employees to software engineers.

Conclusion

The goals embodied in the objectives of the Obama team will help support a reasonable cross section of tech companies at a time when they need it. And the goals are worthwhile and beneficial to the U.S.

Whether these initiatives will be enough to absorb all the tech workers being laid off by Hewlett Packard (HPQ), for example, or all the IT workers losing their jobs at financial companies remains to be seen. Nevertheless, it appears that government support should translate into some new jobs but also into preservation of many existing tech jobs that might easily be at risk. Preventing job losses is no small benefit in the current economy.

As long as politics don't derail these initiatives and as long as the funds are available, tech should enjoy some support in the Obama administration.

Disclosure: none

Comments

[Robert Nabloid:]

I think I missed something - I was gone for a little while. Uh, where is this plan? Do you have a link to a pdf file or something that contains Obama's plan? I'd like to take a look.

2008 Dec 12 02:17 PM

[desicon:]

Yep, we will modernize schools, but still the kids won't be able to speak or write correct and complete sentence in English, not know the history, trail rest of the work in arithmetic. But we will have broadband to every school supported by offshore engineers.

Go IBM..

2008 Dec 12 04:21 PM

[Bull in Chi...:]

You can throw all the money you can muster up at schools but the kids will still come out of the system dumber than ever. Parents and discipline are the answers - not bigger and more modernized schools!! Yikes, what a country!

2008 Dec 13 08:49 AM

[bbowen7:]

Education is more complicated than that. Rural schools are OK; suburban schools are among the best in the world; inner city schools are a disaster. Problems range from the destruction of neighborhood schools; the disengagement of parents; the need to educate waves of non-English speakers; and the inability to properly manage the teaching and administrative staffs. Money and technology will help in some circumstances - particularly where the negative factors are least present and the resources have been inadequate. There would be a disproportionate benefit in rural areas, but you can bet that most will go to the cities.

2008 Dec 13 01:34 PM

[keithpiccir...:]

He is "right in San Francisco". And why shouldn't the inner cities get this opportunity? We clearly want that future segment of our populace to spend less time in jails/prisons eventually and become better participants in society.
As for the stock plays, I am waiting for the re-test that I believe will come in the next 6 months where many infrastructure stocks will have to be sold off yet again.

2008 Dec 13 02:19 PM

[Jake2:]

Nabloid is right. There is no plan yet, only a lot of smoke and mirrors. Blue sky . . . Show me the plan first, then show me the money.

2008 Dec 29 01:37 AM