Unnoticed Movements in Investment and Job Markets Under the OBBB Regime That Both Investors and Job Seekers Should Not Overlook
The One Big Beautiful Bill Act (OBBBA), while primarily focusing on tax and spending changes, is creating a ripple effect across various sectors, generating new opportunities and challenges.
Industries
Certain industries are poised to benefit or undergo transformation due to tax provisions and government spending shifts. For instance, defense industries are set to gain from increased budgets, while asset-heavy sectors like manufacturing benefit from bonus depreciation and new qualified production property deductions, making them more attractive for mergers and acquisitions (M&A) [1][4]. Technology, life sciences, architecture, and engineering firms may benefit from the reinstatement of current deductions for research and experimentation expenses, improving cash flow and making them attractive acquisition targets [1]. On the other hand, clean technology sectors are experiencing layoffs, reshaping the STEM talent market, and influencing long-term industry composition [2].
Talent Markets
The bill is creating specific pressures and opportunities in professional talent pools. The increased complexity and compliance requirements from revised tax credits and reporting rules have boosted demand for regional and smaller accounting firms, particularly CPAs experienced in small business and family tax planning [2]. There is currently a shortage of such professionals, driving up salaries and career mobility within accounting and advisory services [2]. Additionally, Homeland Security spending initiatives are generating unexpected demand for AI and tech jobs, reshaping talent allocation [2].
Investment Flows
Investment flows see significant secondary impact from the bill’s provisions. Smaller business-focused accounting firms may become attractive acquisition targets as they grow due to increased demand [4]. Middle-market M&A are incentivized by several provisions—permanent qualified business income deductions, bonus depreciation, and interest deductibility—leading to greater deal momentum, especially in asset-heavy industries and high-tax states [4]. Moreover, tax-exempt organizations face new excise taxes and changes to donor incentives, which may alter philanthropic investment flows and fundraising strategies [3].
The Talent Shift
The talent shift also reflects a growing worker preference for stability over sky-high compensation. Homeland Security spending on surveillance, drone technology, next-generation initiatives, and predictive analytics is fueling a surge in AI and defense technology jobs [3]. The next era will favor the quick, not the comfortable. Organizations that adapt fastest and professionals who align with them will define the next decade of growth [3].
CPAs in Demand
CPAs with expertise in small-business and family tax planning are in short supply, leading to increased demand and higher salaries [2]. This trend is expected to continue, making it an attractive career path for accounting professionals.
In conclusion, the secondary effects of the OBBBA create complex dynamic shifts: talent demand aligns more with specialized accounting and AI fields; investment flows favor middle-market M&A and smaller advisory firms; and industries such as defense, manufacturing, and tech benefit from enhanced tax incentives and spending changes [1][2][3][4]. It is an exciting time for professionals and industries alike, as they navigate these changes and position themselves for success in the coming years.
[1] Source: Deloitte Insights [2] Source: PwC US [3] Source: KPMG LLP [4] Source: EY US
- The defi sector might find new opportunities as the OBBBA's impact triggers a reevaluation of traditional finance and investing, creating room for decentralized solutions.
- Increased cybersecurity focus is necessary as the expansion of digital assets and online transactions due to the OBBBA raises concerns for data privacy and protection, necessitating skills training and career development.
- As the bill influences personal-finance management through tax changes, financial education and self-development become crucial to ensure individuals make informed decisions and adapt to these shifts.
- The OBBBA's impact on ICOs is significant as stricter regulations could reshape fundraising possibilities, requiring entrepreneurs to develop innovative strategies while understanding the regulatory landscape.
- The technology sector benefits from the OBBBA's enhanced tax incentives, but its workers may need to continually update their skills for career development to keep up with evolving demands in response to the bill's provisions.
