Dive Brief:
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More U.S. construction companies, architects, engineers, and contractors have international building projects “on their radar,” according to American International Group.
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Those projects mostly involve transportation and energy infrastructure. The group quotes the World Economic Forum’s estimate that demand for infrastructure construction around the world is $4 trillion a year. “Emerging” countries, the AIG report noted, will account for nearly two-thirds of all construction activity over the next decade.
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China, for example, is spending up to 12% of its gross domestic product on infrastructure as its urban population is on track to increase by more than 300 million people within 16 years, the report noted.
Dive Insight:
The rising demand around the world for infrastructure building could present an opportunity for U.S. construction contractors. Even smaller countries like Malaysia are building to keep up with their growing populations—and they’re looking for expertise from anywhere in the world.
Growing nations “want a strong product and strong return on their investment, so they’re looking for whoever can provide the greatest value for their citizens,” said Matthew Schardt, multinational energy and construction casualty leader at American International Group. “That knocks down some of the borders between countries and makes it a competitive environment for all contractors to bid abroad.”