Infrastructure project involves building and repairing essential services for a society to function efficiently. These include roadways, railways, water supply and sewage facilities, energy grids, telecommunications networks, and more. These infrastructure systems are a necessity for a nation to thrive economically, improve its quality of life, and foster growth in businesses.
There are several types of projects that fall under the umbrella term of infrastructure, and each is unique in its own right. Some of these projects are highly engineered and specialized. Others are large in scale and budget, working with massive amounts of equipment and requiring contractors to work on horizontal job sites that are exposed to the climate. Despite these challenges, working on infrastructure projects can provide contractors with steady work and lucrative pay checks.
As technology continues to transform the world, the underlying infrastructure of our societies is also evolving. Cross-vertical strategies are a growing trend, with infrastructure investment focusing on opportunities that span across different infrastructure sectors. For example, EV corridors require coordination among highway authorities and power utilities to ensure the availability of charging stations. Digital data centers need substantial power to operate, and converting agricultural waste into sustainable aviation fuel relies on water, energy, and transportation infrastructure.
The global demand for infrastructure is rapidly increasing as nations strive to meet the needs of their populations. This is especially true in Asia, where rapid population growth and industrial expansion are driving investments in new and improved infrastructure. McKinsey research shows that the cumulative amount needed to support current and future demand will exceed $106 trillion through 2040. The good news is that governments can mobilize private capital to invest in infrastructure by establishing frameworks that are aligned with investors’ risk/return mandates.