CREATE
  • Technology
    • BIOTECH
    • COMMUNICATIONS
    • COMPUTING
    • IMAGING
    • MATERIALS
    • ROBOTICS
    • SOFTWARE
  • Industry
    • DEFENCE
    • INFRASTRUCTURE
    • INNOVATION
    • MANUFACTURING
    • POLICY
    • PROJECTS
    • TRANSPORT
  • Sustainability
    • ENERGY
    • ENVIRONMENT
    • RESOURCES
  • Community
    • CULTURE
    • PEOPLE
  • Career
    • EDUCATION
    • INSPIRATION
    • LEADERSHIP
    • TRENDS
  • About
    • CONTACT
    • SUBSCRIBE
No Result
View All Result
CREATE
  • Technology
    • BIOTECH
    • COMMUNICATIONS
    • COMPUTING
    • IMAGING
    • MATERIALS
    • ROBOTICS
    • SOFTWARE
  • Industry
    • DEFENCE
    • INFRASTRUCTURE
    • INNOVATION
    • MANUFACTURING
    • POLICY
    • PROJECTS
    • TRANSPORT
  • Sustainability
    • ENERGY
    • ENVIRONMENT
    • RESOURCES
  • Community
    • CULTURE
    • PEOPLE
  • Career
    • EDUCATION
    • INSPIRATION
    • LEADERSHIP
    • TRENDS
  • About
    • CONTACT
    • SUBSCRIBE
No Result
View All Result
CREATE
No Result
View All Result
Home Industry Infrastructure

Thinking of investing in infrastructure? Here’s why now is the time

create by create
17 October 2017
in Infrastructure
2 min read
1
Thinking of investing in infrastructure? Here’s why now is the time

Macquarie Bank experts say there has never been a better time for investing in infrastructure.

Macquarie Private Wealth’s Martin Lakos said the Australian economy needs more people and companies investing in infrastructure to replace the significant growth gap created by the end of Australia’s mining boom.

He cited the US as an example of an economy that had reinvented itself around IT and innovation, and was now tracking at ‘normal settings’ economically, with a rally in consumer confidence.

Lakos described Europe as “steady but unspectacular”, Japan as on target for growth for the first time in decades, India as poised for 7.4 per cent growth while it embarks on ambitious reform, and China is “defending a more stable 7 per cent GDP growth”.

He said while business confidence in Australia was improving, consumer confidence, which drives 50 per cent of economic activity, was still weak and this was holding back growth.

His colleague John Pickhaver from Macquarie Capital painted a similar picture, explaining that while mining investment has fallen, other infrastructure spending hadn’t come through.

“Residential construction is up, but it’s not enough to fill the gap. Transport and utility construction is not replacing mining investment,” Pickhaver said.

He explained Australia’s superannuation funds currently have assets of around $2 trillion, which is forecast to double in the next decade.

They are looking for long-term and stable cash flow, predictable and consistent demand and high barriers to entry. However, there are a limited number of projects to invest in relative to the capital that is available.

“Residential construction is up, but it’s not enough to fill the gap. Transport and utility construction is not replacing mining investment.”

As a result, the cost of funds has reduced due to competition, and the definition of infrastructure has evolved, with ‘non-core’ assets such as renewables, waste and telecommunications now a greater part of the mix, as investors look for opportunities outside the ‘core’ areas of airports, toll roads and regulated utilities.

Tags: Create July 2016economic growthinfrastructure
Previous Post

Can CRISPR turn back the clock on ageing?

Next Post

Personalised surfboard designs are riding the 3D printing wave

create

create

create tells the stories behind the latest trends, innovations and people shaping the engineering profession. Through our magazine, website, enewsletters and social media, we spread the word about all the ways engineers help create the world around us.

Next Post
Personalised surfboard designs are riding the 3D printing wave

Personalised surfboard designs are riding the 3D printing wave

Comments 1

  1. Pingback: Victoria’s first Chief Engineer talks how to raise the profile of the industry – WEC 2019

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

    WANT CREATE DELIVERED DIRECT TO YOUR INBOX? SUBSCRIBE TO OUR NEWSLETTER.

    By subscribing to create you are also subscribing to Engineers Australia content. Please find our Terms and conditions here

    create is brought to you by Engineers Australia, Australia's national body for engineers and the voice of more than 120,000 members. Backing today's problem-solvers so they can shape a better tomorrow.
    • ABOUT US
    • CONTACT US
    • SITEMAP
    • PRIVACY POLICY
    • TERMS
    • SUBSCRIBE

    © 2024 Engineers Australia

    No Result
    View All Result
    • Technology
      • BIOTECH
      • COMMUNICATIONS
      • COMPUTING
      • IMAGING
      • MATERIALS
      • ROBOTICS
      • SOFTWARE
    • Industry
      • DEFENCE
      • INFRASTRUCTURE
      • INNOVATION
      • MANUFACTURING
      • POLICY
      • PROJECTS
      • TRANSPORT
    • Sustainability
      • ENERGY
      • ENVIRONMENT
      • RESOURCES
    • Community
      • CULTURE
      • PEOPLE
    • Career
      • EDUCATION
      • INSPIRATION
      • LEADERSHIP
      • TRENDS
    • About
      • CONTACT
      • SUBSCRIBE
    preload imagepreload image