The United States needs about $3 trillion of infrastructure investment
Says who? The wise owls of Northern Trust, that’s who. In a report published on the 4th Dec, this important Asset Manager offers significant insights and research into the drivers for effective wealth management.
The current overarching message appears to be that failure to invest in Infrastructure is a missed opportunity and with a nod to Kevin Costner in ‘Field of Dreams’ they quote ‘Build it and they will come’ as a mantra for smart investing in the future.
Today, it seems as if there is a mysterious voice speaking to politicians all over the world, urging them to build. Infrastructure is a siren’s song that governments are tempted to follow as they search for strategies to sustain economic growth. But the mission of designing an effective infrastructure program has proven frustrating for many who have attempted it. What seems like a panacea can be problematic.
Physical infrastructure encompasses systems and facilities essential to economic functioning. Projects follow a hierarchy of needs: at the bottom are public works that support basic subsistence (water treatment, electricity) and at the top are endeavors that expand horizons (broadband). A 2016 report from the McKinsey Global Institute estimates that global spending on physical infrastructure amounts to $2.5 trillion annually.
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