Engineering, Construction and Building Materials Industry review Q2-2008; RSM EquiCo Capital Markets

Global Infrastructure Growth

Global infrastructure spending is estimated to average $2 trillion annually through 2015, fueled by population growth, urbanization and industrialization. More than half of that spending is forecast to occur in emerging economies, driven by favorable regulatory policies, improved government finances and increased private-sector participation. Developing countries such as China and India have set ambitious infrastructure targets. China is earmarking over $543 billion for infrastructure expenditures from 2006 to 2010. Meanwhile, India is budgeting $494 billion for the next five-years (2008-2012) and $989 billion from 2013 to 2017.

The U.S. infrastructure is “aging and inadequate,” which will drive infrastructure expenditures. Recent commentary by E&C companies regarding infrastructure needs, backlog and order trends bodes well for continued strength in the infrastructure related end-markets. Read complete report.