Infrastructure Intensifies

These days, everyone is talking infrastructure—but where do the opportunities really lie for contractors working in this space? The answer just might help gain more work.

The global infrastructure market totaled $3.1 trillion in 2016, and is expected to grow to $4.2 trillion in 2020. In 2016, developing economies accounted for 62% of total infrastructure spending, and are forecast to represent 66% by 2020.

Infrastructure spending is closely aligned with GDP growth; annual average global growth is projected to stand at 3% in 2016-2020. The amount of potential projects for contractors is limitless.

In terms of investment opportunities, the Timetric's IIC (Insurance Intelligence Center) is currently tracking more than 12,700 public and private large-scale infrastructure projects worldwide, from initial announcement to the execution phase.

Collectively, these projects are worth $14.2 trillion. Power and electricity projects dominate at a cost of $5.4 trillion, while railways, valued at $5.2 trillion, account for the second-largest sector.

Road projects recorded the third-largest cost share of $1.9 trillion, followed by airports and ports at $1.2 trillion, and water and sewerage at $421.5 billion. Almost half of all projects require private investment, either directly or through PPPs (public private partnerships).

For contractors looking for work in this market, these are some critical factors to consider when looking for new opportunities in the market.

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