Will Investment In Infrastructure Projects Boost The Economy?

Must read

IT Project Teams are STILL driving competitive advantage

IT Projects are perfectly placed to shape the future of business as we emerge from this pandemic Businesses need to be leaner and more innovative. It’s time for IT Project teams to say, “Hold our coffee, watch us do our thing” – this is our moment.

Embrace the change: Getting to grips with new IT systems

New IT systems for a growing business can be an exciting prospect and deliver many benefits, but how do you convince employees to embrace...

5 Skills Needed To Drive Future Projects

Why do projects fail? It's a question that invites a lot of interest and significant statistics. And there are no wrong answers here. Skills shortages...

Does a Project Manager Need PM Qualifications?

What makes a successful project manager is a combination of their academic abilities, experience and skills, both "soft" and "hard" skills i.e. communication skills...
Paul Naybourhttp://www.parallelprojecttraining.com
Paul is a project management consultant and account manager with particular expertise in the analysis, process development, and implementation of change program management, risk management, earned value management, and bespoke project management training development and delivery. Paul is the Business Development Director of the company Parallel Project Training

Public infrastructure refers to community water and wastewater systems, drainage systems, roads and bridges, railways, electrical utility grids, telecommunications networks, or any other physical structure or service needed for the functional operation of a business, economy or society.

In the most basic sense, populations cannot be sustained without adequate infrastructure. In terms of the economy, businesses cannot operate without power, a healthy and capable workforce, and the means to transport materials and products.

In some parts of the US, the infrastructure is insufficient to support large populations. These are typically isolated, rural areas without adequate water supplies or ready access to large highways. In other parts of the country, extensive infrastructure is present, but it is outdated, in need of repair, or has reached maximum capacity.

Most infrastructure was originally constructed through a combination of low-interest government loans and government grant monies. Highways and roads are examples of public infrastructure that have been maintained through the periodic infusion of government monies. Railways and telecommunication systems are examples of privately owned infrastructure that have been maintained by private companies, but from which the public benefits.

Large, essential infrastructure such as bridges and public water or wastewater systems are examples of public infrastructure that are often poorly maintained. Maintenance on these structures frequently involves interruption of services while the maintenance is underway, and very few bridges or water utilities were designed with secondary access that would allow the primary system to be taken offline for any appreciable length of time.

When government funding was used to initially install water and wastewater systems, funding agencies sought to prevent misuse of the funds by requiring that all funded infrastructure projects be “modest in size, design and cost.” As a result, systems were designed and constructed with very limited excess capacity. Forty years later, communities have grown, and water transmission lines are often too small in diameter to meet the needs of additional growth. Many manufacturing facilities use large volumes of water and create large volumes of wastewater. If a community’s system cannot support their demand, then the facilities are simply built elsewhere and employment opportunities are lost.

Infrastructure projects boost economic development in several different ways.

  1. First, they force the purchase of construction materials. Pipes, wiring, steel and concrete are basic supplies for most infrastructure projects. The manufacture of all of these materials provides employment.
  2. Second, the infrastructure project itself creates jobs. Pipefitters, bricklayers, electricians, construction contractors, truck drivers, backhoe operators, painters, and many other professions are required to successfully complete a project.
  3. Third, local economies benefit from large construction projects. Workers eat at local restaurants, shop at local stores, buy gas from local fuel stations, and many times even rent temporary housing while the project is being constructed.
  4. Finally, communities with improved infrastructure have the potential for growth, and this potential is attractive to new business developments. New business development attracts workforce populations not just in that community, but in surrounding communities from which workers might commute.

Professional project managers play a critical role in the initiation and delivery of infrastructure projects. Mayors or City Managers are often uninformed about the availability of government funding opportunities. When they are aware of opportunities, they often lack experience with the application process and have no relationship with the funding agency. When government funding is not available, elected officials often lack the presentation skills cooperative techniques needed to effectively demonstrate that infrastructure projects funded through municipal bonds or tax mechanisms effectively pay for themselves over the life of the infrastructure.

Professional project managers, with knowledge of the applicable government regulations, the ability to build consensus among neighboring communities or stakeholders within a community, and the ability to effectively implement and construct the project enable projects to be completed more quickly, and faster completion generally equates to lower construction costs.

Many project managers step into infrastructure projects that are already funded and ready to begin, but a more active role in the initiation of the project, from conception to funding to construction, is far more beneficial

- Advertisement -

More articles


Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.

- Advertisement -

Latest article

Project Management Lessons learnt from Covid Holiday Disruption

The very definition of Holiday (Noun - an extended period of leisure and recreation, especially one spent away from home or in travelling), is an entirely flexible parameter to work within, so how do we adapt? And what Project Management lessons are to be learnt from this summer?

Project management for the ‘new normal’

We live in strange times. Who would have thought last year that 2020 would be the year of Covid-19, the year of...

Long-Term Strategies To Help Manage Your Team Remotely

The world has changed profoundly since COVID-19. No one saw a global pandemic coming but now isn’t the time to panic. Instead,...

10 Steps for Planning and Implementing a Successful Branding Project

Your brand is perhaps your most valuable asset. It defines your organisation’s reputation and visibility in the market. The strength of your...

4 Ways AI is Transforming How We Manage Projects

Project management is more than a simple planning of phases. It is an extremely dynamic function. Companies hire project managers to provide...