The lack of infrastructure, industrial facilities, and civil engineering has worsened many of the challenges that the global economy has faced in the past years. Due to the rising inflation and Russia’s war on Ukraine, Europe has required the construction of new energy infrastructure and facilities to diversify its energy supplies. In the years after the start of the COVID-19 pandemic, port congestion has exacerbated supply chain problems, bottlenecks in airports have caused delays, and digital infrastructure has become more relevant than ever. In addition to that, there is also a need for resilient infrastructure that will be able to withstand the extreme weather events made more likely by climate change. Having good quality infrastructure and investing in heavy construction is, therefore, necessary to face such crises and to facilitate economic growth.
Infrastructure spending varies heavily per country, for various reasons. Some countries might have a more outdated infrastructure that needs modernization, in other countries infrastructure might not necessarily be at the top of the priority list. Overall, investments in infrastructure were higher in developing countries than they were in, for instance, Western Europe.
Changes in climate can bring about either drought or floods. Structures like seawalls or dikes can be built through engineering to help protect communities from flooding. Agricultural production can also be affected by drought. Despite these challenges, the construction output of new water infrastructure has been falling in the United Kingdom in the past years. However, other regions that are more exposed to water scarcity or natural disasters may require higher levels of spending.
Quality infrastructure is essential for economic growth because it makes it easier for any industry to run its operations. Energy and power, along with transport, were the infrastructure types that received most spending in Africa. However, spending for oil and gas projects, and port construction, were also relatively high. Those facilities may facilitate trade, improve the quality of life of the population, and maintain the flow of revenue generated by the energy and fossil fuel industries.
Investment in power facilities is essential to tackle the energy crisis, ensure more resilient energy supplies, and transition to a zero-emission economy. To achieve that goal, not only new renewable-energy power plants are needed, but also transmission lines so that all that electricity can go where it is most needed. The Power Construction Corporation of China, the leading power infrastructure construction contractor, obtained most of its revenue from fossil fuel and hydropower projects.
The Heavy Construction covers infrastructure construction, industrial construction, and civil engineering - the building and maintenance of public works. This industry includes topics like road and highway construction, infrastructure projects and the building and maintenance of public works - including bridges, canals, dams, airports and railways, spending on infrastructure, and new construction of industrial facilities - such as offshore, mining and quarrying, processing plants, power stations, and steel mills.