- US construction spending was $1.8 trillion in March, down 0.1% from the previous month but up 5.2% year-over-year. Residential construction declined 0.6% while non-residential rose 0.7%.
- Construction costs continue to plague the sector as material costs remain high. Addressing aging infrastructure, particularly roads and bridges, is a priority for many cities.
- Risk mitigation plans are needed to handle climate events like wildfires and floods, and sustainability issues around water, land, and forest management must be considered in future planning.
2. PAUL YOUNG - BIO
• CPA, CGA (1996)
• Academia (PF1, FA4, FN2, MU1. and MS2)
• SME – Customer Success Management
• SME – Risk Management
• SME – Close, Consolidate and Reporting
• SME – Public Policy
• SME – Emerging Technology
• SME – Business Process Change
• SME – Financial Solutions
• SME – Macro/Micro Indicators
• SME – Supply Chain Management
• SME – Data, AI, Security, and Platform
• SME – Internal Controls and Auditing
Contact information email: paul.young@ca.ibm.com
LinkedIn: https://www.linkedin.com/in/paul-young-055632b/
3. AGENDA
• Infrastructure
• Construction Spending - USA
• Permits – Canada
• Infrastructure gap
• Supply chain issues
• Monitoring assets and risk mitigation
• Residential financial statements
• Construction company financial statements
• Summary
PRESENTATION TITLE 2/11/20XX 3
4. WE FORUM / FOCUS OF INFRASTRUCTURE
Source - https://www.weforum.org/agenda/2021/01/four-big-infrastructure-trends-for-2021/
PRESENTATION TITLE 2/11/20XX 4
5. GLOBAL INFRASTRUCTURE – ROAD
INFRASTRUCTURE
PRESENTATION TITLE 2/11/20XX 5
Source - https://www.nationmaster.com/nmx/ranking/road-infrastructure-spending
6. WORLD
INFRASTRUCTU
RE SPENDING
• Source -
https://documents.worldbank.org/
en/publication/documents-
reports/documentdetail/97057154
9037261080/hitting-the-trillion-
mark-a-look-at-how-much-
countries-are-spending-on-
infrastructure or
https://www.weforum.org/agenda/
2019/04/infrastructure-gap-heres-
how-to-solve-it/
PRESENTATION TITLE 2/11/20XX 6
8. CHINA AND GLOBAL INFRASTRUCTURE
• China continues to build and finance infrastructure projects in Africa - http://www.sais-cari.org/data-
chinese-contracts-in-africa
• China and the Belt Road - https://www.constructionglobal.com/construction-projects/china-belt-and-road-
initiative-spending-hit-pandemic
• China and developing countries / loans - https://www.reuters.com/article/us-china-emerging-
debt/database-reveals-secrets-of-chinas-loans-to-developing-nations-says-study-idUSKBN2BN0EY
• China and supply chain - https://www.arabnews.com/node/1418636/business-economy
• NATO and China’s control of transportation routes -
https://www.defensenews.com/global/europe/2021/03/04/nato-grapples-with-grasping-chinas-
transportation-clout-in-europe/
PRESENTATION TITLE 2/11/20XX 8
10. INFRASTRUCTURE GAP / UNITED STATES
Source - https://www.mckinsey.com/business-functions/operations/our-insights/reimagining-infrastructure-in-the-united-states-how-to-build-
better#
PRESENTATION TITLE 2/11/20XX 10
11. BUILDING PERMITS/ UNITED STATES
Source - https://www.mckinsey.com/business-functions/operations/our-insights/reimagining-infrastructure-in-the-united-states-how-to-build-
better#
PRESENTATION TITLE 2/11/20XX 11
12. BUILDING PERMITS/ UNITED STATES
Source - https://www.mckinsey.com/business-functions/operations/our-insights/reimagining-infrastructure-in-the-united-states-how-to-build-
better#
PRESENTATION TITLE 2/11/20XX 12
13. BUILDING PERMITS/ UNITED STATES
Source - https://www.mckinsey.com/business-functions/operations/our-insights/reimagining-infrastructure-in-the-united-states-how-to-build-
better#
PRESENTATION TITLE 2/11/20XX 13
15. STATE AND LOCAL GOVERNMENT
INFRASTRUCTURE
Source - https://www.pgpf.org/blog/2020/06/state-and-local-infrastructure-spending-a-closer-look
PRESENTATION TITLE 2/11/20XX 15
16. SUPPLY CHAIN
PRESENTATION TITLE 2/11/20XX 16
Blog – How best to manage your supply chain.
1. Large container ships and emissions - https://www.bloombergquint.com/gadfly/huge-container-ships-biggest-problem-is-emissions
2. Port productivity - https://www.joc.com/port-news/us-ports/tpm21-one%E2%80%99s-nixon-says-us-port-productivity-gaps-mean-
congestion-months_20210302.html
3. Nearshoring - https://investmentmonitor.ai/manufacturing/think-nearshoring-will-bring-back-us-manufacturing-jobs-think-again/
Countries need to be more competitive with their policies in areas of taxation, environment, and other regulatory areas.
4. Data and AI will play a bigger role as part of supply chain management -
https://www.scmr.com/article/the_future_of_supply_chain_management_is_ai_and_data
5. Ability of canal systems to handle the flow of goods - https://www.agcs.allianz.com/news-and-insights/expert-risk-articles/suez-canal-
mega-ships.html
6. Moving supply chain areas from China to manufacturers as part of moving away from China influence - https://www.news-
press.com/story/opinion/2021/03/15/bring-critical-supply-chains-home-biden-china-mineral-markets/4692255001/
7. Standardized ESG reporting including rankings in areas like human rights or environment or other areas –
https://www.slideshare.net/paulyoungcga/introductory-to-esg-and-sustainability-reportingpptx
8. Development of new logistic projects like one belt road - https://fortune.com/2021/03/24/china-belt-road-initiative-soft-power/
9. Costs of moving freights - https://www.hellenicshippingnews.com/fbx-index-looking-forward-3/
10. Global inflation - https://www.bloomberg.com/news/articles/2021-03-11/inflation-is-already-creeping-into-some-corners-of-the-world
Here is my work on the supply chain - https://www.slideshare.net/paulyoungcga/how-to-better-manage-your-supply-chain
17. SUPPLY CHAIN RISKS
Here is my work on supply chain -
https://ibm.box.com/s/63aqf8jo004v2bo5f8cf6eppgglhbvs5
Supply Chain Disruption / Suez
The Suez Canal is the latest example of how both the public and
private sectors need to embrace crisis management including having
their crisis management report audited every year.
https://www.slideshare.net/paulyoungcga/how-to-better-manage-
geopolitical-events
PRESENTATION TITLE 2/11/20XX 17
Source - https://supplychaingamechanger.com/top-10-
global-supply-chain-risks/
18. MONITORING OF INFRASTRUCTURE
ASSETS
PRESENTATION TITLE 2/11/20XX 18
Blog – How best to Identify Climate Risks with Portfolios - https://www.linkedin.com/pulse/blog-how-best-identify-climate-
risks-portfolios-paul-young/?published=t
More monitoring tools - https://community.ibm.com/community/user/communities/community-
home?CommunityKey=3d7261ae-48f7-481d-b675-a40eb407e0fd
Insurance Risk - https://www.thezebra.com/resources/car-insurance/auto-insurance-predictions-2022/
23. ADDITIONAL LINKS
PRESENTATION TITLE 2/11/20XX 23
Blog – ESG and Sustainability Reporting – What is next – March 6, 2023 -
https://www.linkedin.com/pulse/what-next-esg-sustainability-reporting-paul-young
24. SUMMARY
• Higher material costs continue plague the construction sector
• Cities want more focus on fixing existing infrastructure including roads and bridges
• Addressing issues with water, land, and forest management as part of future urban and rural planning
• Risk and Crisis mitigation plans for wildfires, floods, and other climate events
• Optimization of public transit systems
• Addressing issues with ports, intermodal, warehousing, and other areas as part of addressing issues with the
supply chain
• Streamlining regulations related to development of Oil, LNG, Critical Metals, metals, lumber, cement, and other
products related to the construction sector.
PRESENTATION TITLE 2/11/20XX 24
Blog – Construct
i on Sector Analysis and Commentary – April 2023
Construction spending in the United States recorded $1.8 trillion in March, down by 0.1% %
compared to the previous month's revised figure, the US Census Bureau revealed in a report on
Monday. On an annual basis, the figure was 5.2% higher.
Spending on private construction came to $1.45 trillion, virtually unchanged from the revised
January reading. Residential construction declined by 0.6% to $852 billion in February, while
non-residential construction rose 0.7% to $601 billion. Public construction came in at $391
billion, which is 0.2% lower in comparison to the last month's figure.
Construction expenditure reached $261 billion in the first two months of this year, an increase of
5.9% from the same period in 2022.
Source - https://www
.teletrader
.com/us-construct
i on-spending-down-by-0-1-in-
february/news/details/59755254?internal=1
Addit
i onal Links:
Building material costs cont
i nue to plague the construct
i on sector -
https://www
.constructconnect.com/construct
i on-economic-news/easing-of-construct
i on-material-costs-
in-canada-not-as-clear-cut-as-in-u.s
Public infrastructure spending cont
i nues to plague with challenges -
https://video.foxbusiness.com/v/6323891160112/#sp=show-clips
Green infrastructure - https://www
.nsf
.gov/pubs/2023/nsf23079/nsf23079.jsp
Global water crisis - https://www
.dw
.com/en/where-is-all-the-water-going /audio-63267408
Construct
i on technological trends - https://www
.ajg.com/us/news-and-insights/2023/apr/top-9-early-
2023-construct
i on-industry-trends/