Global trends in built asset opportunities

We are really pleased to be able to share with you two new ground breaking publications from EC Harris, which look at built assets in a new light.  The Built Asset Wealth Index (BAWI) is the first of its kind, by using the value of a country's built assets as an indicator of its wealth, and potential prosperity. The Global Infrastructure Investment Index (GIII) delivers an index bespoke to private infrastructure investors/ developers by ranking countries according to infrastructure investment attractiveness. Both act as insight for governments, developers and investors.The reports are just two examples of the many publications released by ECHarris each year across sectors and covering a range of built asset issues. We combine information from the market place with layers of sector and service knowledge held within our business to create thought provoking material for discussion and insight.The presentation focuses on why we produced BAWI and GIII, how we produced the work and significantly what the key findings mean for our business environment.Understanding why infrastructure is key helps understand our drive for exploring how infrastructure influences economic prosperity.   With global population potentially hitting 10 billion by 2050, and its accompanying rise in the need for basic economic infrastructure, such as water and energy. We are witnessing globalisation of products, services and lifestyles. We are seeing increasing urbanisation, particularly rapid in emerging markets, growth of the middle classes and increasing expectations and demands on all forms of infrastructure from telecommunications, to schools, hospitals, and power resources.The cost of building and maintaining infrastructure is huge.  With current trends including reducing amounts of private investment into infrastructure, and choice of infrastructure investments the market is tough and competitive. Understanding the drivers for private investors is essential.Looking at the value of built assets, as we did in BAWI, offers a new and exciting look at a country's economic potential.  Built assets wealth globally is three times global GDP, and with the largest value likely to be held in China over the next few years, the global picture of economic influence is shifting. Forecasting shows that built assets value globally likely to grow around 35% - which is similar to OECD estimates of an additional $50 trillion needed to meet global demand.  Demand for new significant in emerging economies, requirement in west is for some new eg HS2, but also maintain and repair existing.Can look at value of assets from a range of angles. Singapore comes out top from a per capita angle.  UK 29% lower than its developed peers.  The question is - does it mean that we haven't got enough assets or does it mean we are using the assets we do have well.  Our next report in this series will focus on the relationship between performance and asset in greater detail. Due out in late Autumn.The GIII also recognises the role of infrastructure and built assets and this is one of the five themes on which we selected and weighted a range of indicators pertinent to our investor clients.Singapore was shown to be the most attractive place for infrastructure investment, with a transparent government, support to investors, and a balance of regulation. It is a dynamic growing economy with a control on corruption and operates through a stable government.Once the ranking is designed it is important to blend our knowledge of built assets and the way markets operate.  Using a asset/cash model we can segment the market in four way from asset poor cash poor economies to asset rich cash rich economies. The drivers for development, and risk mitigation and opportunities for investment can then be explored, to ensure tailored approaches.  For example risks and opportunities in Nigeria need to be managed differently to opportunities in Canada.Understanding the infrastructure investment lifecycle, along with depth knowledge around the asset lifecycle, helps to deliver a range of services and opportunities that can meet client need.  Using BAWI and GIII as valued knowledge tools can be part of your knowledge, sector and professional skill toolkit bringing business benefits.