The infrastructure sector in the United States of America includes the current infrastructure, the regulatory and financing landscapes and the major projects in the construction pipeline. These include all infrastructures such as roads, railways, electricity and power, water and sewerage, communication, and airports and ports. The US budget blueprint released in March 2017 clearly demonstrates a new foundation for American Infrastructure Insights. The budget includes a combination of new federal funding and incentivized non-federal funding. The public funds will focus on incentivizing additional non-federal investments rather than offering direct funds for infrastructure projects.
The focus is majorly on political and financial institutions involved in the infrastructure market, along with the competitive and regulatory environment. The new investments and an analysis of the project pipeline for each infrastructure sector explain the prospects for major projects and the companies that have secured the contracts. In the year 2017, the US government has released the list of projects to the National Governor’s Association known as the Emergency and National Security Projects. All the infrastructure projects under proposal were identified by the government for further approvals. In the USA, IIC is currently monitoring 1,817 large-scale infrastructure construction projects starting from all stages of development, announcement and finally execution.
According to the research report “Infrastructure Insight: the US”, the analysis of the infrastructure insight includes the regional trends, regulatory changes, projects and investments along with competitive intelligence related to the growth strategies of leading companies. The infrastructures are a built-to-last in reality; however the infrastructure insights in US needs keep evolving as technology, demographics, and cultural values shift. Now-a-days the constant changes were observed in the infrastructure expectations, infrastructure investments in new projects or to retrofit old ones and also a driver of corporate relocations. Technology tops the list in the infrastructure sector because broadband capacity and performance is an important factor in influencing company relocations, the overall quality of existing infrastructure, millennials’ preferences such as density, diversity, walk ability, and transit accessibility as basic requirements at work place or residential.
The infrastructure sector demands for assets with the availability of capital. More than $100 billion revenue is available to target all classes of North American infrastructure assets. All the infrastructure funds, pension plans, energy funds, insurance companies, construction companies, and sovereign wealth funds are ready to invest in Greenfield and Brownfield assets across capital intensive sectors. The majority of the infrastructure projects are related to energy and power assets along with sub-sectors such as transport, social assets, environment, etc. The sub-sectors experience a lower activity level as the assets are government-owned. It was observed that there is a continuous gap in the US between infrastructure needs and investment opportunities available to the private sector. This is due to the combination of financial and political factors.
Infrastructure is often viewed as a critical selling point for real estate in the yesteryears but now it is overpowered by the millennial social value. With the new generation of 83-million strong urban-centric workers, major cities focus on offering more diversity, amenities, and transit options. Majority of the business needs in US are also driving the change in infrastructure insights. Smart and weird infrastructures enable cities to monitor and control energy use, transportation patterns, and utilities for maximum efficiency. Innovative infrastructures encourage a sustainable environment and it is becoming the way of the future as the population view it as key to a city’s livability. The infrastructure transformations are with a price tag and fortunately anticipate for more potential capital in-flow. Majority of the private investors view infrastructure as an alternative asset class and more public-private partnerships are forged to finance US infrastructure projects.
Recent studies on the infrastructure insights in US convey that the market has started relatively very slow and will surely recover over the year. The overall tax, legal, and political environment has a positive impact on the investments in US infrastructure assets. Infrastructure is indirectly a key for real estate development which involves the land cost and construction cost. Infrastructure financing remains a challenge in the US and when high-quality projects are offered, investors are ready to grab the opportunity. J.P. Morgan, Allianz Global Investors, Blackrock, and KKR are among the leading competitors in the infrastructure insights. These competitors invest hundreds of millions of dollars into capital projects in both the operating and construction phases.
Key Factors Considered in the Report
US Infrastructure Construction Industry Research
Leading Infrastructure Construction Projects in US
Infrastructure Projects Pipeline by Stage and Funding in US
US Roads and Rail Infrastructure Projects
US Electricity and Power Infrastructure Projects
US Water and Sewerage Infrastructure Projects
US Airports and Other Infrastructures Reports
US Government Spending on Infrastructure
US Infrastructure Construction Industry Future Outlook
North America Construction Industry Future Outlook
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Ankur Gupta, Head Marketing & Communications