5.1 = Paradigm Shift with Economic Policy as the Catalyst

There is a manufacturing boom getting underway in 2026, fueled by policy measures and technological advancement: tariffs, tax incentives, and AI. The President's tariffs have prompted nations (e.g., EU, Japan, Saudi Arabia, South Korea, UK, Vietnam, etc.) to negotiate deals for lower tariff rates in exchange for massive US investments representing several trillion dollars of cumulative commitments to bring back manufacturing including Roche, Hyundai, TSMC, while leading U.S. companies will onshore with large commitments coming from Apple, GM, Pfizer to fortify supply chains.

Companies are reshoring to dodge tariff risks, but also capitalize from the 100% bonus depreciation, allowing full immediate write-offs on machinery, equipment, production facilities, reducing after-tax costs and ROI that will drive growth.

The AI boom is estimated at $500B+ annual spend on data centers, chips, power equipment, cooling systems, semiconductors, and raw materials like copper, steel, and specialty alloys.

Industrial companies, (e.g., Caterpillar, Deere, Eaton, Freeport-McMoRan, Nucor, Steel Dynamics, Powell, GE) are seeing tailwinds from the industrial and AI buildout. Marathon views this as a massive opportunity in the years to come as credit facilities, term debt and asset-based finance will provide critical capital, flexible, and scalable funding solutions for these capital-intensive projects.

The Atalanta Fed who has the best GDP forecasting models in the business estimates Q1 GDP of 5.1%. When is the last time you remember U.S. GDP growing at 5% plus? Changing paradigm where tariffs + tax incentives for CapEx+ AI Buildout + record consumer wealth + public and private capital markets open for business = windfall growth. Capital allocators have much to consider; the time is now. Expect credit markets will have a record year of issuance. that can compound steadily, while remaining positioned for regime shifts that markets may be underpricing today.