The industry is responding very well to the global pandemic economic impact, and it is key for governments across the globe to modernize infrastructure and support the nations’ growth plans. In 2020, the global construction revenue was estimated at $10.7 trillion: an estimate buoyed significantly by infrastructure projects in emerging economies that account for 53.2% share of the industry global revenue.
“Everyone is impressed with overall work product.”
– Vice President of Business Development, Engineering and Construction Firm
Public sector infrastructure projects typically are awarded to heavy/civil engineering construction contractors- transportation (roads, bridges, tunnels, airports, rail), utilities (water, wastewater, water distribution/collection, reservoirs, dams), other (parking garages, stadiums, etc.).
Private sector construction of new structures for commercial, institutional, industrial use, along with modification of existing structures is generally awarded to general construction contractors. Firms specializing in carpentry, electrical, plumbing, and roofing may be subcontractors to the general construction contractor.
Aging infrastructure in North America and parts of Europe could benefit greatly from a large injection of capital into public sector infrastructure projects- particularly transportation and utilities. A large injection of capital by the public sector would fuel hiring and equipment purchases among heavy/civil engineering construction companies.
Unfortunately, cash-strapped governments are unable to fund much-needed infrastructure improvements. In North America, money is being spent in pipeline construction because of the need to move natural gas and will be spent on LNG terminals as the US approves additional LNG export locations.
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