A new survey finds global private and public sector leaders are not confident about an increase in infrastructure spending following the worldwide spread of COVID-19 and are pessimistic about a post-virus economic recovery.
“The data shows that the outbreak of COVID-19 cases worldwide has essentially put a halt to infrastructure investment globally, putting the likelihood of essential projects such as the development of new hospitals, schools and irrigation systems into doubt,” explained Norman Anderson, chairman and CEO of CG/LA Infrastructure, a company which focuses on infrastructure project development globally and conducted the survey. “There is a need for a robust infrastructure commitment as part of any serious economic recovery.”
The Global Infrastructure Industry Survey was conducted from March 19 to 30 and received over 13,000 responses from various sectors including engineering/construction, finance, public owners of infrastructure and technology fields from over 30 countries.
“Now is the time for leadership, an investment model that will allow local economies to recover, and real attention to the benefits that infrastructure brings to people — not just jobs, but health, and a sense of confidence in the future,” said Anderson.
“What I am trying to do is use our platform so that people around the world have a voice in terms of what they need in infrastructure investment.”
The survey found only five per cent believe that investment will “increase significantly” following the pandemic, a sharp decline from 34 per cent before the crisis. Twenty-seven per cent of respondents said that the infrastructure investment would increase or increase significantly — a drop from 71 per cent, when asked previously.
According to the survey, prior to the crisis only 10 per cent of respondents thought that infrastructure investment would decrease (seven per cent), or decrease significantly (three per cent), but now a majority (52 per cent) believe that infrastructure investment will decline (34 per cent) or decline significantly (18 per cent).
The survey asked a variety of questions including how did you see infrastructure investment in your country before COVID-19 and how do you see it today?
“The whole message here is that people in countries around the world see this as being a big problem and from my point of view, I really want to bring this to peoples’ attention so that people can figure out how to do something about it right now,” said Anderson. “These are real issues and we want to get people to pay attention to them.”
Another question asked from a global recovery point of view is how do you see the infrastructure brand in your country? The study found 82 per cent of respondents see infrastructure as a weak or average brand, with the majority saying it is problematic or “characterized by incompetence and, especially, chronic corruption.”
“Because one of the big problems globally — it’s even a big problem in the U.S. and Canada but a bigger problem in emerging markets — is when you mention infrastructure people think corruption,” Anderson explained.
“If you are trying to look at a recovery, part of the recovery is going to come from infrastructure investment, you are throwing money down a hole if you are working with a very weak brand.”
There is an urgent need to address emerging markets infrastructure due to the lack of public trust in the infrastructure brand, he added. A question that focused on which infrastructure areas require the most investment found 28 per cent selected social infrastructure such as hospitals and schools was a top priority. Clean water was highlighted as the top priority by 14 per cent as were transit and highways (12 per cent) and wastewater (11 per cent).
“This is all stuff that doesn’t have any financial return…but it’s absolutely critical for countries and it’s critical for the brand of infrastructure because that means you would be focusing on the right stuff,” Anderson pointed out.
TORONTO – Canada’s main stock index was up more than 100 points in late-morning trading, helped by strength in base metal and utility stocks, while U.S. stock markets were mixed.
The S&P/TSX composite index was up 103.40 points at 24,542.48.
In New York, the Dow Jones industrial average was up 192.31 points at 42,932.73. The S&P 500 index was up 7.14 points at 5,822.40, while the Nasdaq composite was down 9.03 points at 18,306.56.
The Canadian dollar traded for 72.61 cents US compared with 72.44 cents US on Tuesday.
The November crude oil contract was down 71 cents at US$69.87 per barrel and the November natural gas contract was down eight cents at US$2.42 per mmBTU.
The December gold contract was up US$7.20 at US$2,686.10 an ounce and the December copper contract was up a penny at US$4.35 a pound.
This report by The Canadian Press was first published Oct. 16, 2024.
TORONTO – Canada’s main stock index was up more than 200 points in late-morning trading, while U.S. stock markets were also headed higher.
The S&P/TSX composite index was up 205.86 points at 24,508.12.
In New York, the Dow Jones industrial average was up 336.62 points at 42,790.74. The S&P 500 index was up 34.19 points at 5,814.24, while the Nasdaq composite was up 60.27 points at 18.342.32.
The Canadian dollar traded for 72.61 cents US compared with 72.71 cents US on Thursday.
The November crude oil contract was down 15 cents at US$75.70 per barrel and the November natural gas contract was down two cents at US$2.65 per mmBTU.
The December gold contract was down US$29.60 at US$2,668.90 an ounce and the December copper contract was up four cents at US$4.47 a pound.
This report by The Canadian Press was first published Oct. 11, 2024.
TORONTO – Canada’s main stock index was little changed in late-morning trading as the financial sector fell, but energy and base metal stocks moved higher.
The S&P/TSX composite index was up 0.05 of a point at 24,224.95.
In New York, the Dow Jones industrial average was down 94.31 points at 42,417.69. The S&P 500 index was down 10.91 points at 5,781.13, while the Nasdaq composite was down 29.59 points at 18,262.03.
The Canadian dollar traded for 72.71 cents US compared with 73.05 cents US on Wednesday.
The November crude oil contract was up US$1.69 at US$74.93 per barrel and the November natural gas contract was up a penny at US$2.67 per mmBTU.
The December gold contract was up US$14.70 at US$2,640.70 an ounce and the December copper contract was up two cents at US$4.42 a pound.
This report by The Canadian Press was first published Oct. 10, 2024.
