Investment in Infrastructure Boosting Demand for Talent
Democratic presidential contender, Sen. Barack Obama, says he will call for the creation of a “National Infrastructure Reinvestment Bank” that would invest $60 billion over 10 years in highways, technology and other projects, according to the Associated Press. Obama says his plan would be an effort to “rebuild America” and create 2 million jobs in the process.
Well, regardless of who is sitting in the oval office next year, the federal government is likely going to be forced to spend billions on infrastructure. According to Kiplinger, “Investors are waking up to the sound of jackhammers worldwide. In the next 20 years, the tab to build and maintain roads and bridges, and to create and maintain systems that deliver electricity, water, sanitation and telecom services, will swell to $30 trillion. Rich countries must upgrade decades-old infrastructure, and developing nations must build it to make their economies competitive.”
Infrastructure is considered by most investors to be long-term, inflation proof, and run contrary to business cycles. And as global investors looking to capitalize on opportunities in infrastructure, executive search firm, A.E. Feldman, says infrastructure finance jobs are opening up. The firm reports that the most sought after candidates are those with experience in infrastructure transactions and environmental engineering.
The American Society of Civil Engineers projects that $1.6 trillion be invested in U.S. infrastructure over the next five years alone. And according to Deloitte, the evidence is everywhere of the large and growing gap between infrastructure needs and historical rates of investment.
The rising need for more and updated infrastructure around the world coupled with continuing volatility in other asset classes is opening the door to private investment in public infrastructure - or public-private partnerships (PPPs). These arrangements enable the private sector to develop and operate infrastructure assets and services that traditionally have been provided by government, such as roads, bridges, tunnels, railways and water plants. Deloitte reports that more than 25 states now have PPP-enabling legislation on their books. The firm concludes, “The PPP trend is global, accelerating and encompassing a broad range of infrastructure sectors.”
