Agility Wanted

Uncertainty Defines the Global Outlook for Infrastructure Projects in the Coming Years

Article Change Management, Risk Management 1 December 2016

PM Network

Parsi, Novid

How to cite this article:

Parsi, N. (2016). Agility Wanted: Uncertainty Defines the Global Outlook for Infrastructure Projects in the Coming Years. PM Network, 30(12), 15.
 

By Novid Parsi

Consider two scenarios: a continued downturn in China's economy or an upswing in the global economy.

US$1.7 trillion The amount that global infrastructure spending could vary between 2015 and 2020, depending on the scenario.

IF CHINA'S ECONOMY SLOWS …

US$1.1 trillion Projected decrease in global infrastructure spending through 2020—from US$28.2 trillion to US$27.1 trillion

IF THE GLOBAL ECONOMY SPEEDS UP …

US$600 billion Projected increase in global infrastructure spending through 2020—totaling almost US$29 trillion

60%
of the infrastructure spending reductions would happen in Asia Pacific.

58%
of infrastructure spending increases—US$350 billion—would happen in Asia Pacific.

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Drop in infrastructure spending in oil and gas, coal, metals and minerals extraction

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Jump in transportation and utilities infrastructure spending

75% of infrastructure spending reductions would happen in three industries: extraction, transportation and utilities.

  

7 STRATEGIES FOR AN UNPREDICTABLE ENVIRONMENT

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1. Prioritize essential projects; cut or delay others.

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2. Renegotiate contractors' and subcontractors' terms.

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3. Control schedules, deadlines and costs.

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4. Review projects that see the greatest risk during downturns and create a risk mitigation plan.

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5. Partner with multilateral development banks such as the World Bank, especially in emerging markets.

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6. Form public-private partnerships.

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7. Remember the big picture—the project's ROI.

Source: Capital Project and Infrastructure Spending Outlook: Agile Strategies for Changing Markets, PwC and Oxford Economics, 2016

This material has been reproduced with the permission of the copyright owner. Unauthorized reproduction of this material is strictly prohibited. For permission to reproduce this material, please contact PMI.

PM NETWORK DECEMBER 2016 WWW.PMI.ORG
DECEMBER 2016 PM NETWORK

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