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CG/LA Infrastructure pre-election survey: a $2-trillion investment isn’t enough

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CG/LA Infrastructure released its pre-election survey conducted from October 23 to 27. In the document, the company shares some of the industry’s insights regarding the U.S. infrastructure status before the presidential election.

CGLA Infrastructure pre-election survey

CG/LA Infrastructure released its pre-election survey, which includes insights and forecasts from industry people on what they think is essential to address under the next U.S. administration.

The questions included in the survey address infrastructure stimulus, investments, pension funds, and transformational topics for the industry.

Also, the survey had the participation of people from several industry sectors such as Transport, Energy, Water, IT/IOT/Smart Cities, Public Sector, and others.

Furthermore, CG/LA included the infrastructure community’s perspective across different disciplines: Engineering/Construction, Finance, Technology, Development/Ownership, Services, and others. 

The survey and its results

According to the CG/LA pre-election survey, participants in the infrastructure community were more willing to vote for the Democrat candidate, Joe Biden (51.5%), than for the Republican one, Donald Trump (41%).

Answering the question over whether they believed the next administration (now the Biden one) would promote an infrastructure stimulus, a majority of participants said yes (92.5%), compared with those who said “No” (7.5%).

As critical remarks, some respondents added they believed the next administration would boost such a stimulus only with a Biden win, and if Democrats retake the control of the Senate.

In that regard, other participants added they thought such a change in stimulus would be modest whether under a Biden or Trump administration.

Respondents were also asked to give their professional opinion on Joe Biden’s $2.5-3 trillion investment proposal to address the energy transition.

60.1% said the plan was about right, 30.2% thinks it is too low, and only 10% said it is too high.

In that sense, participants noted that current significant infrastructure assets are at least 50 years old and will require replacement over the next two decades. For most of them, even a $2-3 trillion plan seems too low.

Besides, some respondents mentioned the opportunity for renewables and cleaner infrastructure to create more jobs. This situation seemed more crucial given the coronavirus pandemic.

Private investment participation: CG/LA

Over the question about whether U.S. Infrastructure projects should tilt to private investment, the majority of participants answered, “Yes, and private investment should be increased” (44.7%). 39.8% responded, “Yes, and private investment should be 50%”, and only 9.7% of participants answered, “No, public investment.”

In that regard, some participants expressed their concern, given the large preference for private investment in infrastructure projects. Respondents questioned if that is a good thing.

In contrast, other participants are asking for more private participation in infrastructure funding. In their thought, public investment hasn’t worked for the last 40 years approximately. Another big concern for private investors is the permits obstacle that the public sector supposes several times.

Answering whether the next administration should encourage pension fund investment in infrastructure projects, the large majority of participants said Yes (88.2%).

Possibly of your interest: Renewable energy industry congratulates on Biden win

In the survey, CG/LA adds that infrastructure is an extremely safe investment with guaranteed returns”.

About where to focus the investment, respondents said mostly In Brownfield (46%) and New Infrastructure projects (21.5%). These new developments include autonomous vehicle lines, 5G installs, smart cities, etcetera.

The respondents also declared the infrastructure stimulus should be focused on infrastructure projects (58%) rather than on programs (34%).

Finally, most participants (63.7%) said that in terms of 5G technology, they believe the next administration will trace a change for the infrastructure industry.

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