The Infrastructure Construction and Equipment Finance Opportunities report stated that the U.S. infrastructure system has been rated a D grade by the American Society of Civil Engineers (ASCE), due to years of neglect and delayed maintenance. Trenchless Technology is an invaluable tool in rehabilitating infrastructure in that ageing assets can be rehabilitated with minimal impact to surrounding infrastructure systems such as highways and railway lines. This could provide assistance in performing greatly required maintenance with as little disruption as possible.

The report says that the gap between the investment required and investment allocated creates upside potential in infrastructure construction for equipment suppliers and financial institutions to help close the investment deficit that exists to restore the national infrastructure to good condition.

According to the report:

  • Stimulus bills such as the American Recovery and Reinvestment Act will give infrastructure construction a small, temporary boost. However, with funding stretched thinly across the nation, and state and local budgets in disarray, the stimulus bills will not provide a long-term solution.
  • The future of infrastructure investment depends heavily on federal legislation. Currently, Congress is targeting the highways and streets, power, and rail segments.
  • The prospect of public-private partnerships and the development of a national infrastructure fund designed to attract private investors is becoming more enticing as government agencies struggle with fiscal troubles.
  • Lack of work forced many companies to lay off workers and idle or sell their equipment. Utilisation rates among construction equipment fell to around 60 per cent compared to around 80 per cent during normal economic times.
  • Operating on a lower-risk model, financial institutions are requiring that borrowers have top credit quality. They are also giving preference to longstanding clients.
Opportunities are detailed by infrastructure sector and include the following, among many others:
  • Sewer and Water – Despite the urgent need for repair, federal support for water and sewer infrastructure is generally mixed.
  • Highway and street construction – The most visible infrastructure segment, highway and street projects will continue to attract public and private attention.
  • Rail – Quickly gaining momentum as a preferred mode of transport, high-speed rail studies are sprouting up across the nation.
  • Power and Communications – Power sector investment will dominate infrastructure construction spending for this sector.
  • Transportation – Trends in transportation are generally slower moving and less volatile, which means that growth in the segment will not occur overnight.
  • Conservation and development – The nation's dams, levees, and locks all received poor to failing grades from the ASCE; of the 257 locks that are part of the inland waterway system, 47 percent were deemed functionally obsolete by the US Army Corp of Engineers.

To read the executive summary of the report, click here.