Download Which nations are building the strongest foundations for economic

Which nations are building the
strongest foundations for economic success?
CONTENTS
1. FOREWORD
2. EXECUTIVE SUMMARY
3. GLOBAL BUILT ASSET WEALTH INDEX
3.1 Ranking - China overtakes the US
3.2 Asset wealth per person - Qatar leads the way
3.3 Emerging markets gaining ground
3.4 Built asset wealth and GDP relationship
4. BUILT ASSET OUTLOOK
4.1 Ten year forecast – China to move even further ahead
4.2 Implications for the global economy
5. HOW CAN BUILT ASSETS BE MADE TO LAST?
6. APPENDIX
6.1 Methodology
6.2 Data sources
7. FURTHER READING
2
1.FOREWORD
Julien Cayet - Global Leader, Business Advisory, Arcadis
This has been a year of remarkable uncertainty. Amongst
the headlines five mega-trends seem critical – crashing
commodity prices, the political crises of security and
migration, financial imbalance from a slowing China,
unprecedented volatility in currency markets and the
ever-present threat of climate change.
In this uncertain environment
investors, developers and policy
makers need to assess whether the
global outlook will clear, or crash.
Either way, it seems certain that
the road ahead will be bumpy.
The 2015 Global Built Asset Wealth
Index assesses the development
of a nation’s built environment
to show which countries are
creating the long-term, sustainable
foundations for economic, social
and environmental success. As
global uncertainty rumbles on, it
provides an opportunity to take
stock of the bricks and mortar that
form the basis of our societies.
To do so, we have quantified the
value of the built assets in 32
countries, taking into account
all buildings and infrastructure
– every home, school, office, rail
track, waterway, power station –
to see where investment is being
made into the building blocks of
prosperity.
From the wealth of data contained
in this report, two clear insights
emerge – and with them two very
different challenges.
Firstly, emerging economies,
starting with China, have been
investing rapidly in built assets
and are expected to continue to
do so in the next decade. This
has profoundly changed the
global league table of the world’s
wealthiest built asset nations.
With so much uncertainty now on
the horizon these countries will
need a renewed focus on quality
over quantity. They will need to be
absolutely clear on the rationale
and value of their built assets in
order to sustain high economic,
social and environmental returns.
Secondly, developed economies
have experienced at best
stagnation, and in many cases
outright decline, of their built
assets stock. This revelation
comes at the very time they
may need to tighten the fiscal
belts and do more with less. It is
critical that each investment they
make – be it new buildings and
infrastructure or upgrade and
repair – is done strategically to
ensure the productivity of their
built assets. They need to take a
more sophisticated approach to
the whole lifecycle of these assets
to lower the cost of ownership and
deliver the built asset environment
that their society needs.
At Arcadis we work with our clients
in the public and private sectors
to tackle these challenges and
improve the quality of life that is
provided by their natural and built
assets. We combine market sector
knowledge from across the world
with deep technical expertise to
help reduce the risk of investment
and bring insights, certainty and
results.
This report provides a unique
snapshot into which countries
are providing a well-developed
built landscape that meets the
needs of its people, economy and
environment. We hope that you
find it illuminating as you approach
your own challenges.
2.EXECUTIVE
SUMMARY
The Arcadis Global Built Asset Wealth Index calculates the distribution of the world’s wealth in terms of the physical built assets which contribute to a nation’s productivity. The index estimates the value of the buildings and infrastructure in 32 countries which collectively represent around 87% of global GDP.
It also forecasts how this distribution of built asset wealth is likely to change over the coming decade. Produced by Arcadis and informed by research conducted by the Centre for Economics and Business Research (Cebr), this second edition of the Global Built Asset Wealth Index finds that:
• Over the past two years, these
countries have invested a net
total of US$8 trillion in their
built asset stock, reflecting the
importance that investment in
economic infrastructure and
buildings has on the economic,
environmental and social
well-being of society.
• Total built asset wealth now
stands at an estimated US$218
trillion which is the equivalent
to US$30,700 per person alive
today.
• China has the largest built asset
stock in the world with a total of
US$47.6 trillion, overtaking the
US total of US$36.8 trillion.
• This can be attributed to the
enormous investment that China
has made in its built asset stock
since 2000. In this time China has
made a net investment of US$33
trillion, substantially larger than
all other economies put together.
• Qataris replace Singaporeans as
the richest built asset population,
with a built asset wealth of
US$198,000 per capita compared
to US$192,000 in Singapore.
• Many G7 economies have seen
a net de-investment through
depreciation of their built assets
since 2012.
• The largest of these was Japan
which saw a depreciation in
its built asset stock of US$4.6
trillion, however, as a proportion
of its stock, Germany’s net
loss exceeds Japan – at 21%
compared to 20%.
4
• Other developed economies
to have undergone significant
net de-investment since 2000
include France and Russia, while
the US stock has remained
largely constant.
• Since 2012, Spain saw the largest
de-investment of the countries
analysed in this report, equal
to 3.8% of GDP.
• The stock of built assets is
closely correlated with a nation’s
economic output. On average,
countries analyzed have a built
asset stock worth 2.9 times
of GDP.
• Some economies vary
significantly from this average.
The UK, for example, has a built
asset stock worth only 1.8 times
GDP. This indicates efficient use
of productive capital, but also
suggests potential gains could be
made from further investment.
• China’s heavily investmentdependent growth model means
that by 2025 its built asset stock
will be worth over double that
of the US, and will exceed in size
those of the next four economies
combined.
• Whilst not all of this stock
will produce value immediately,
much of it will still translate into
economic growth, demonstrating
the continuing shift in the world’s
economic centre of gravity
to Asia.
3. GLOBAL BUILT ASSET WEALTH INDEX
From new skyscrapers rising from the deserts of the Middle East to the
strengthening of New York’s hurricane-battered flood defences; housing
shortages in the slums of São Paulo to new airport runways in congested
England, the desire to build and develop our land seems insatiable.
This need to build is reflected in our index which finds that, overall, the world’s built asset wealth has increased by a net total of US$8 trillion since 2012 to stand at over US$218 trillion in 2014. This is the equivalent to over US$30,000 for every man, woman and child in the world today, based on a global population of
7.1 billion (source: UN).
3.1 Rankings
CHINA OVERTAKES USA IN BUILT ASSET INDEX
This report finds that, significantly, China has now overtaken the USA as the wealthiest nation in the world in terms of built assets.
China’s rapid asset building has run alongside net de-investment in the United States as US businesses and government fail to invest enough to replace old
machinery, equipment and buildings.
Meanwhile, some of the OECD
economies which topped the
table in the past have seen further
falls in their standing, both in
relative and absolute terms. Some
of their fall in built asset stock
reflects the long term transition
from manufacturing-based
economies to service-based ones,
which require less machinery
and equipment to produce value.
However, that does not tell the
whole story. Many European
economies, such as the UK and
Germany, have significantly
underinvested in their built assets
over recent years. The UK’s underprovision of assets appears to date
from further back, as its relative
de-investment over the past
decade has been less sharp than
many other mature economies.
These trends date back to before
the financial crisis, but have
been exacerbated post-crisis as
governments and firms have cut
back investment.
Although investment continues to
rise rapidly on a global scale, the
current situation in which advanced
economies have seen prolonged
de-investment is unprecedented.
There is no shortage of funds
available to invest globally, which
suggests that the private sector
may lack confidence in future
growth, especially in advanced
economies. However, as growth
continues to gain momentum,
investment may recover with it.
6
50
45
40
35
30
25
20
15
10
Ghana
Qatar
Chile
Singapore
Philippines
Egypt
Hong Kong
UAE
Belgium
South Africa
Malaysia
Poland
Netherlands
Turkey
Thailand
Saudi Arabia
Canada
Australia
Indonesia
UK
Spain
Mexico
Brazil
France
Italy
Russia
India
Germany
Japan
USA
China
0
South Korea
5
FIGURE 1: STOCK OF BUILT ASSETS, 2014, US$
SOURCE: PENN WORLD TABLES, IMF, WORLD BANK WDI, NATIONAL STATISTICAL AGENCIES, CEBR ANALYSIS
COUNTRY
SPOTLIGHT:
CHINA
Depending on which economic
measure is used, China has either
already overtaken the US as the
world’s largest economy, or is likely
to do so in the near future. This
defining moment in the global
economy is reflected in this index
as China appears at the top of the
world rankings, overtaking the US.
China has added US$33 trillion
to its built asset stock since
2000. This is larger than every
other economies’ investments
combined. There are two distinct
characteristics which make the
rise in China’s built asset wealth
so astonishing. One is scale and
the other is the sheer speed at
which it has been built. However,
no assessment of China’s
infrastructure asset boom and its
effect on the country’s position
in the Global Built Asset Wealth
Index can be complete without
an overview of what underpins it,
and how continued growth will be
shaped.
Unlike most mature markets,
such as those of North America,
Europe and Australia, a significant
amount of infrastructure projects
in China are driven by central
government planning. Lands
are released for development
at ‘public’ auctions with strict
stipulations and parameters
around the amount of each asset
class to be built. It is critically
important for the government
to ensure the development of
world class infrastructure to
support its fast growing economy
and the unprecedented levels of
urbanization in China.
An important theme for its
policymakers over the last two
years has been to rebalance the
economy towards consumer
spending, a task that has proven
difficult. Households in China
are cautious, preferring to save
money rather than spend it, with
the absence of comprehensive
social security systems being one
reason. While this carries dangers
in terms of overcapacity and a
potential bubble in property, a
high saving rate has also given
China a formidable built asset
stock. The slow pace at which this
rebalancing is taking place, along
with continued growth, means that
by the end of the forecast horizon,
China’s stock will exceed the
combined value of the next
four economies.
The China led Asian Infrastructure
Investment Bank, which aims
to beef up infrastructure
development in Asia, will help
China to continue to increase the
lead over USA in the years to come.
COUNTRY
SPOTLIGHT:
USA
The USA has fallen to second place
in global Built Asset Wealth, trailing
behind China. This change comes
as a result of the unprecedented
infrastructure investment China is
making (9% of GDP) coupled with
US under-investment (2% of GDP).
There is increasing concern about
the negative impact an underperforming built environment
has on the economic prosperity
of US cities. A recent survey by
Politico Magazine revealed that
35% of US mayors believe “better
infrastructure” is the one thing that
could foster the most growth in
their cities. The American Society
of Civil Engineers (ASCE) recently
stated that a whopping $3.6
trillion investment is required to
bring US infrastructure up to ideal
conditions—funding cannot come
from the public sector alone.
8
To bridge the funding gap,
municipalities and city authorities
have embarked on a range of
previously unpopular private
investment models. In contrast, the
US built asset wealth embedded
in real estate has demonstrated
solid long-term growth. A strong
driver of growth has been Foreign
Direct Investment, whereby capital
inflows from markets like China,
India and Russia have, in some
cases, shown triple-digit growth
for a number of years. Due to the
likelihood that there will always
be a substantial funding gap, the
US needs to increasingly embrace
unique ways to catalyze private
investment in infrastructure, and
find new ways to maintain the
integrity and service levels of the
aging asset base for less money
than they currently spend.
The situation in the US is further
complicated by the consequences
of severe weather. From drought
in California to hurricanes in New
Orleans and New York – there is an
urgent need to build more resilient
cities to protect the public and the
economy from these devastating
events. The economic impact of
Hurricane Sandy alone is estimated
at over $70 billion. A shift from
reactive to proactive resiliency
measures will be beneficial.
The US needs to be more strategic
and efficient around how new
assets are created and existing
assets are maintained, find unique
ways to attract private investment
through the use of models like
public-private partnerships and
build more resilient cities. A shift
from a focus on largely cost-based
capital planning and public debt
financing to whole lifecycle cost
optimization and capital efficiency,
such as the selective use of private
equity capital, will help the US to
see an increase in the wealth of its
built assets.
3.2 Asset wealth per person
QATAR LEADS THE WAY
200,000
180,000
160,000
140,000
100,000
80,000
60,000
40,000
Ghana
Philippines
India
Egypt
Indonesia
Brazil
South Africa
Turkey
China
Mexico
Thailand
Chile
Poland
Malaysia
UK
Russia
Saudi Arabia
USA
Spain
France
Germany
Belgium
South Korea
Netherlands
Italy
Canada
UAE
Australia
Japan
Qatar
0
Hong Kong
20,000
Singapore
US$
120,000
FIGURE 2: BUILT ASSETS PER CAPITA, US$
SOURCE: PENN WORLD TABLES, IMF, WORLD BANK WDI, NATIONAL STATISTICAL AGENCIES, CEBR ANALYSIS
Qatar and Singapore stand
comfortably ahead of the pack
on built assets per capita, at
US$198,000 and US$192,000
respectively. The countries
near the top of this ranking are
disproportionately made up
of smaller nations, either by
population or area, so the density
of the built asset stock is much
greater per resident. China, by
comparison, has a far smaller built
asset stock per capita when its built
asset wealth is spread amongst its
1.4 billion people.
The UK is far behind other
advanced economies. While this
means its built assets are very
productive, because they support
per capita income of a similar
level to the rest of the OECD, it
also suggests that more built
assets would go a long way, given
the strength of the correlation
between GDP and built assets.
COUNTRY
SPOTLIGHT:
QATAR
Qatar tops the index in 2015 as the
richest built asset owner per capita
at nearly US$200,000 per person,
up by over US$140,000
in 2013.
To date, Qatar has the fastest
growing construction industry
in the Gulf Cooperation Council
(GCC), rapidly expanding at an
annual rate of 18%, and is expected
to continue at this rate for the
next decade. This growth will be
supported by a number of large
investments in infrastructure.
The 2022 FIFA World Cup™ and
the country’s 2030 National Vision
will have a considerable impact on
infrastructure investments over
the next ten years. The country is
expected to spend over US$150
billion in the next decade with
US$20 billion in roads,
COUNTRY
SPOTLIGHT:
SINGAPORE
In 2012 Singapore had the highest
built asset wealth per capita in the
world. The past three years has
seen Qatar overtake Singapore
to claim top spot in the rankings,
however asset wealth had not
peaked in Singapore and continued
its rise by over US$35,000 (29%)
per person during this period.
The volume of asset stock is
understandably low due to the
physical constraints of land mass
however the wealth generated
from these assets is extraordinary.
The sustained performance of
this small, densely populated
island state reflects a continued
and focused investment in
infrastructure. It has retained a
high end manufacturing industry
and continues to be a desirable
environment to live, work and
do business.
10
US$40 billion in railways,
US$40 billion in stadiums,
US$8 billion in ports and tens
of thousands in hospitality and
social infrastructure. Moreover,
the country has plans for
further investment in transport
infrastructure and water and
electricity by 2020.
All this growth is subject to the
supply of materials and there is
a danger of substantial building
material inflation unless the supply
chain is carefully managed. What
is less of an issue for Qatar when
compared to the rest of the region,
is the little impact to the country
from falling oil prices, primarily due
to the fact that Qatar exports LNG,
which is not as susceptible to the
oil market.
With investments in infrastructure,
residential and non-residential
buildings, Qatar’s built asset wealth
will continue to grow at double
digit levels for the foreseeable
future.
The development of the Jurong
East area of the island is emerging
as a bustling commercial hub and
a low cost of occupancy alternative
to the Central Business District for
many international organisations.
The attractiveness of this ‘Jurong
Gateway’ has been bolstered
following the announcement that
the terminus station of the High
Speed Rail link between Singapore
and Malaysia will be located there.
Such structured decentralization
activities will continue to stretch
the asset base into lower cost
areas of Singapore, bringing a new
diversity of wealth creating asset
types. The active EDB (Economic
Development Board) support
for diverse but complimentary
co-location of assets, such as
leisure and commercial with
manufacturing and residential,
supported by world class
infrastructure may see Singapore
jostling for its top ranking again
over the coming years.
COUNTRY
SPOTLIGHT:
HONG KONG
Hong Kong has moved from fifth
to third place with regards to built
asset wealth per capita in the world
and now has US$ 159,991 per
individual.
Despite being an already built
asset rich city, the Hong Kong
Government continues to invest
heavily in infrastructure works.
Whilst real estate projects
continue to account for the largest
share in the total gross value
of construction works, they are
closely followed by transport
projects. The gross value of
construction works performed
by main contractors increased by
over 12% year on year over the
last 12 months. This is reflected
in the number of Government
major works that are currently
in construction. It is expected
that this level of expenditure will
continue in the short term.
In the medium term the level of
construction is forecasted to drop
off as projects are completed and
the pipeline for future construction
activity is thin. Some major
construction projects are on the
horizon, but do not have firm start
dates as yet. These include a third
runway at Chek Lap Kok and the
Kai Tak redevelopment.
Investment share of GDP remains
very similar to the previous
years, and the stock of built asset
wealth has continued to increase
marginally. The Hong Kong
government clearly understands
that investing in infrastructure is
essential in order to keep Hong
Kong competitive in the global
business environment.
2014
50
2012
40
30
20
10
Ghana
Chile
Qatar
Singapore
Philippines
Hong Kong
UAE
Egypt
Belgium
Malaysia
South Africa
Poland
Netherlands
Turkey
Thailand
Saudi Arabia
Canada
Australia
UK
Indonesia
Spain
Brazil
Mexico
South Korea
Italy
France
Russia
Germany
India
USA
Japan
China
0
FIGURE 3: STOCK OF BUILT ASSETS IN 2012-2014, US$
SOURCE: PENN WORLD TABLES, IMF, WORLD BANK WDI, NATIONAL STATISTICAL AGENCIES, CEBR ANALYSIS
3.3 Emerging markets gaining ground
Other notable changes since 2012 include net depreciations for the largest
developed economies – US, Japan, Germany, France, Italy and the UK. Smaller developed economies followed a similar pattern. Spain’s decline, at 3.8% of its entire built asset stock, is the greatest proportionally. The largest capital-stock decline in absolute terms is Japan, at US$590 billion.
Investment gaps occur when
an economy does not invest
enough to replace the portion of
its capital stock that depreciates
every year: for construction, this is
approximately 5%. This implies that
in 2014 the US required investment
spending of around US$1.4 trillion
to replace the depreciation in built
assets in construction alone. It fell
short by some US$200 billion.
All the advanced nations
underinvested between 2012 and
2014, bar Hong Kong, Singapore,
South Korea, Canada and Australia.
This group of nations was also
relatively less affected by the
financial crisis and subsequent
downturn, as their recent growth
has been more coupled with
China and less tied to the sluggish
economies of the US, Europe
and Japan.
The longer term picture of
investment from 2000 to the
present shows a similar trend.
12
In Europe, only Poland, Spain,
Belgium and Turkey have managed
to increase their stock of built
assets. Spain experienced a
construction boom during this
time, while Turkey and Poland
are still converging with Western
Europe in terms of living standards
and hence investing to catch up.
For the rest of Europe, the net
depreciation over the period
reflects chronic underinvestment
followed by the financial crisis and
recession. The crisis pushed down
values of existing assets, often
severely. The subsequent recession
starved firms, individuals and
governments of income meaning
that replacement of retired assets
and new investments have been
put off. In the longer term, there
has been deindustrialisation and
transition to services, which require
less physical capital.
800
700
600
500
400
300
200
100
Germany
Japan
Russia
France
UK
Italy
Netherlands
USA
Poland
Belgium
Spain
Mexico
Hong Kong
Brazil
Canada
South Africa
Turkey
Thailand
Philippines
South Korea
Australia
Singapore
Malaysia
Egypt
Chile
Ghana
Indonesia
UAE
India
China
Qatar
-100
Saudi Arabia
0
FIGURE 4: CHANGE IN STOCK OF BUILT ASSETS, 2000–2014, %
SOURCE: PENN WORLD TABLES, IMF, WORLD BANK WDI, NATIONAL STATISTICAL AGENCIES, CEBR ANALYSIS
Figure 4 shows three OPEC
(Organization of Petroleum
Exporting Countries) members
in the top five investors. While
still heavily dependent on oil and
gas exports, these states have
used resource revenues to make
initial steps towards diversification
of their economies. They are
moving into sectors such as
tourism, financial services and
education. Built assets include
museums and galleries (the UAE
has commissioned architect I.M.
Pei to design a Museum of Islamic
Art), education (the UAE has set
up a satellite campus of New York
University), skyscrapers (of which
Dubai has built nearly 190 since
2000) and stadiums (Qatar will
host the Fifa World Cup 2022).
In the rest of the world, the post2000 period saw high levels of
asset creation. China’s investment
has been crucial to many other
countries: the extraordinary boom
in construction supported high
commodity prices throughout
much of the period, which enabled
commodity-exporting economies
such as Qatar, Canada, Indonesia,
Saudi Arabia, Chile and Australia
to enjoy high revenues and
hence make large investments
themselves. Figure 5 shows how
China’s investment since 2000
dwarfs that of all other countries
put together.
35
30
25
20
15
10
5
0
FIGURE 5 CHANGE IN STOCK OF BUILT ASSETS, 2000–2014, US$
SOURCE: PENN WORLD TABLES, IMF, WORLD BANK WDI, NATIONAL STATISTICAL AGENCIES, CEBR ANALYSIS
Japan
Germany
Russia
France
Italy
UK
USA
Netherlands
Poland
Ghana
Hong Kong
Belgium
South Africa
Philippines
Chile
Spain
Singapore
Turkey
Qatar
Mexico
Egypt
Thailand
Malaysia
Canada
UAE
Brazil
Australia
South Korea
Indonesia
India
China
-10
Saudi Arabia
-5
COUNTRY
SPOTLIGHT:
GERMANY
Germany ranks as the fifth
wealthiest nation for built
assets with a built asset
stock of US$10.2trillion.
Germany remains the economic
powerhouse of Europe but it is
facing major problems within its
public infrastructure.
A long term underinvestment
means that newly created built
assets have not kept up with
depreciation. Over the past 30
years Germany’s investment
share of GDP in its buildings and
infrastructure has declined from
30% in 1980 to 18% in 2014.
Germany has to deal with huge
infrastructural problems. For
example, a recent eight week
long closure of the bridge across
14
the river Rhine connecting Mainz
and Wiesbaden, and construction
works at several bridges across
the Rhine in Cologne are just two
examples of incidents leading
to major disruptions, and huge
losses of time in goods and
commuter transport due to aging
infrastructure.
However, it is not only roads and
bridges that have witnessed a
shortfall of investments. Other
public infrastructure, for example
hospitals, urgently need attention
as well. According to the Society
of German Hospitals (Deutsche
Krankenhausgesellschaft)
hospitals need investments of
€6 billion per annum. Many of
Germany’s hospitals were built
in the 1960s and 1970s, meaning
that their layout does not fulfil
the current needs. In addition,
contaminated materials are
causing even higher costs when
carrying out restructuring or
refurbishment works.
Experts on both the public
and the private sectors are
working together to develop
financial vehicles to facilitate
private investments in public
infrastructure, but with a
pressing need these efforts must
be accelerated if Germany is
to ensure its current economic
status is not damaged by its
failing infrastructure.
COUNTRY
SPOTLIGHT:
MALAYSIA
Built assets will provide a key role
in the final stage of Malaysia’s
transformation into a fully
developed nation.
The 11th Malaysia Plan, published
in May 2015, sets out the nation’s
strategy for the final five years of
the 2020 plan to elevate itself to
developed nation status by 2020.
The last five years have seen a
strong growth in the stock of built
assets. Investment in built assets
as a percentage of GDP has been
growing in recent years. In addition
to strong private investment in
buildings, there has been strong
public investment in infrastructure.
For example, over the last five
years, the total road network
grew by 68% with 93,000km of
new roads. Investment in urban
rail saw a 32% increase.
The new plan sets out a continuing
focus on the strengthening of
enabling infrastructure to boost
productivity and support economic
expansion. Major projects to be
completed by 2020 include the
Klang Valley MRT Line 1, the
2,000km pan Borneo Highway
and the West Coast Expressway.
A parallel focus will be investment
in competitive cities, delivered
through City Competitiveness
Master Plans to increase liveability
and stimulate economic growth.
Experience from other countries
indicates that, in the race to achieve
the 2020 goals, a key challenge
faced by Malaysia will be to ensure
that the quality and sustainability
of the new built assets are not
compromised in the interests of
achieving cost and time goals.
3.4 Wealth and
income relationship
The correlation between economies’ stock of built assets and their GDP is strong. Some proportion of national income is saved each year, and these savings can be used to make investment, rather than being consumed in that year. In turn, these investments generate returns in future years. Figure 6 illustrates the strength of the relationship, with most countries clustered close to the line of best fit.
Despite this, there are substantial
differences between economies.
For instance, China is far more
capital-intensive than the US – the
main difference causing this is the
fact that China is a much more
manufacturing-driven economy
than the US. There is also likely to
be significant under-utilisation of
assets in China given growth is so
rapid and much asset creation is
pre-emptive, also known as “build
it and they will come”. The UK, like
the US, is highly service oriented
and so appears under-capitalised
compared to other economies.
Some of the European economies
which have seen net depreciation
over recent years such as Germany,
France and Italy still appear on the
“overinvesting” side of the line of
best fit. Important to note is the
fact that this analysis only looks at
the quantity of past investments
and not their quality nor their
usefulness. Therefore an economy
can have a large investment
gap because assets are unfit for
purpose or in the wrong places,
rather than there being an absolute
shortage. The Arcadis Global
Built Asset Performance Index
(published 2014) explores the GDP
that these built assets generate.
20
18
USA
China
16
140000
6
120000
India
UNDERINVESTING
Japan
100000
4
80000
60000
UK
Germany
OVERINVESTING
Russia
France
Mexico
Brazil
2
Canada
40000
Egypt
S. Korea France
Philippines
Turkey Indonesia Spain
Poland
Singapore
Australia
20000
Saudi Arabia
Qatar
Thailand
0
Ghana
Netherlands
0
Chile
0
200000
10
Malaysia 100000
Hong Kong
UAE South Africa
Belgium
300000
400000
20
Built Asset Wealth (trillions)
FIGURE 6: STOCK OF BUILT ASSETS BY COUNTRY VERSUS GDP, 2014 (US$)
SOURCE: PENN WORLD TABLES, IMF, WORLD BANK WDI, NATIONAL STATISTICAL AGENCIES, CEBR ANALYSIS
16
50
COUNTRY
SPOTLIGHT:
UK
The UK is behind all other G7
members on built asset wealth
per capita, and has had a flat
trajectory on investment share
of GDP for several years since the
financial crisis of 2008. However,
UK built assets are very productive,
and given the correlation of built
assets to GDP, this suggests
there is opportunity for further
GDP growth from investment
in built assets. This is perhaps
reflected in the government’s
forward spending program on
infrastructure, and accounts for
two further trends: first a shift
towards the structural pooling
of investment through combined
local authorities, and second,
an increased level of city-wide
planning and collaboration
between public and private sector.
From an infrastructure
perspective, the UK will invest
over £150 billion in the next 5-8
years in its regulated transport
and utility networks. New “Totex”
(Total Expenditure) regulatory
incentive mechanisms have
been implemented to maximise
the output of those assets and
the service they provide to
customers. To achieve that asset
output optimization, the supply
chain is shifting from traditional
construction delivery to now
include technology and customer
service providers.
There will be a further £150 billion
investment in other infrastructure
“mega programmes”, including
Thames Tideway Tunnel, smart
metering, nuclear new build,
renewables, High Speed 2,
Crossrail 2, and airport expansion.
Government policy needs to
provide better certainty on timing
and scale for many of these
programs to attract investment
funding, and to enable the
supply chain to plan effectively
for efficient delivery. Certainty
and clarity will also enable socio
economic benefits to be realised,
and the service economy to benefit.
Master planning at a city level
is increasing, aligning built asset
enablers for education, healthcare,
transport, retail, as well as
affordable housing. By bundling
asset classes into city programmes,
the scale of asset investment
opportunity is becoming more
attractive for investors, particularly
overseas investors, which in
turn is creating new funding
options. Collaboration between
combined local authorities and
the private sector also derisks the
programmes and increases the
potential for revenue generation.
London, Birmingham, Glasgow,
Hull and Peterborough all have
good examples of attracting
investment, and leveraging
assets to generate revenue to
enable other public services. This
reinforces confidence in sustaining
an efficient built asset to GDP ratio.
COUNTRY
SPOTLIGHT:
AUSTRALIA
Australia’s construction market
has slowed over the last two
years with end of the mining
boom. While there are forecasts
for a moderation in Australia’s
construction sector, it is still
set to expand at a solid rate.
Scenarios for growth continue
to be positive, supported by
residential construction and
the public sector emphasis on
developing the country’s
transport infrastructure.
Recent growth has been impacted
by a slowdown in the mining sector
as the outlook for Australia’s
commodities sector has weakened.
The mining industry’s reliance on
Asian demand is apparent with
a reduction in China having a
negative impact on construction
activity. This, combined with recent
weaker commodity prices, has
resulted in capital expenditure cuts
by major Australian miners.
Residential building is driving near
term growth. There has been
an apparent surge in dwelling
units approved but they have
not yet commenced. The value
of residential work commenced
has only just started to pick up.
Consequently, the delayed impact
of residential work commenced
will spill over to future quarters,
boosting residential construction
activity. Population growth and
low interest rates in Australia
also support residential demand
and building activity. Foreign
investment is fuelling the
residential sector with many inner
city high rise apartment buildings
being predominantly attractive to
Asian investors.
A key growth area beyond
2015 is expected to be in road
construction. Government has
indicated that it will prioritise road
investment to address congestion
concerns in major Australian cities.
18
COUNTRY
SPOTLIGHT:
BRAZIL
The Brazilian economy has grown
very little in 2015, the first year of
Dilma Rousseff’s second term. This
follows stagnation of GDP in 2014,
a new round of interest rate climbs
and fiscal tightening, while the
exchange rate will also continue
to depreciate. In these conditions,
inflation will hold at around 6%
and Brazil’s economy faces major
challenges. The investigation into
Brazil’s biggest corruption scandal
involving oil giant Petrobras and
the country’s largest engineering
and construction firms is also
responsible for the slowdown, it
has undermined the construction
sector and reduced investment in
infrastructure, and has threatened
to paralyze projects worth R$870
billion (US$325 billion), including
some needed for the Olympics
as they got caught up in legal
proceedings and thus barred from
public work. One of them, OAS,
already defaulted on its debt, while
Odebrecht and Andrade Gutierrez
had their most senior corporate
figures detained by police over
investigations into allegations
that they collaborated with
former Petrobras executives and
politicians to extract bribes from
the oil company.
With the intention to revive
economic growth, the
infrastructure package worth
almost R$200 billion (US$64
billion) was announced in the
beginning of June. The plan reveals
the intention to sell to the private
sector new concessions to build
and operate nearly 7,000 km of
roads, airports and a number of
ports and railways, worth about
R$66 billion for roads, R$37
billion for ports, R$86 billion for
railways and nearly R$9 billion for
airports (Salvador, Florianopolis,
Fortaleza and Porto Alegre plus
seven regional ones). Brazil needs
expanded transport networks to
carry the raw materials it supplies
to the world, including iron ore,
oil, coffee, sugar and soy. One
of the most ambitious projects
is a plan agreed previously with
China to build a R$ 40 billion
“Bioceânica” trans-continental
rail link connecting the Atlantic
to the Pacific ocean, giving Brazil
a cheaper route to China, its top
trade partner. But its success
would depend on execution as
the main concern is whether the
government will be fast enough
to approve the projects and
launch the bids.
The infrastructure plan took
a positive step regarding the
willingness to open up to the
private sector as an effort to
reduce the dependency on BNDES,
the Brazilian Development Bank,
and increase the rate of investment
in the country. The private sector
has already spent around US$200
billion on infrastructure projects
in the past five years. The current
economy creates a scenario that
is attractive for foreign investors.
One of the favorable elements is
the high value of the US Dollar
compared to the Real. With the
exchange rate reaching as high
as R$3,30/US$, the purchasing
power of foreigners has increased
quite significantly. The hope is that
the president will use Petrobras
scandal to revitalize the damaged
oil and construction industries
by opening them up to foreign
competition.
4.BUILT ASSET
OUTLOOK
4.1 Ten year forecast CHINA TO MOVE EVEN
FURTHER AHEAD
By 2025 (Figure 7), China will have increased its lead over the US and other
countries further. Its total asset stock will be more than double that of the US, and in fact, will exceed the combined stock of the next four economies listed.
For some time the Chinese
government has been intending
to reduce the dependence of
growth on investment. There are
concerns that oversupply will
reduce the values of built assets
suddenly, precipitating a crash. This
rebalancing would see China move
closer to most other economies
where consumer spending,
rather than investment, plays the
dominant role in the economy.
The transition is encountering
difficulties, as the government
has repeatedly used fiscal
stimulus to try to meet its growth
targets. Since the government
tends to use its resources for
investment in China (welfare
spending is significantly lower
than in the OECD, for example)
– the proportion of the economy
accounted for by investment is
falling only very slowly. This keeps
China’s built asset stock growing
rapidly. It is unlikely that there will
be a rapid slowdown in Chinese
growth over the forecast horizon.
20
India will overtake Japan and
occupy third place. Thailand
will surpass Australia. Poland
and Turkey will overtake the
Netherlands, making this a story
of emerging economies overtaking
more developed ones. The largest
gains will be eight places up the
rankings, by Indonesia and the
Philippines, while the largest fall
will be for Russia of seven places.
This is due to a “perfect storm”
of many Russian oil and gas
reserves becoming uncompetitive,
sanctions locking its companies out
of financial markets, and recession
over the next year or two. The
end of the commodities boom will
have adverse, but less extreme,
consequences for Australia and
South Africa. However, Saudi
Arabia and the United Arab
Emirates will continue to climb
due to their especially high rates of
investment. Their oil is also more
competitive compared to most
other sources.
100
90
80
70
60
50
40
30
20
Qatar
Ghana
Chile
Singapore
Philippines
Hong Kong
UAE
Egypt
Belgium
South Africa
Poland
Malaysia
Netherlands
Turkey
Thailand
Saudi Arabia
Canada
Australia
Indonesia
UK
Spain
Mexico
Brazil
France
Italy
Russia
Germany
India
Japan
USA
China
0
South Korea
10
FIGURE 7 FORECASTED STOCK OF BUILT ASSETS IN 2025, US$
SOURCE: PENN WORLD TABLES, IMF, WORLD BANK WDI, NATIONAL STATISTICAL AGENCIES, CEBR ANALYSIS
COUNTRY
SPOTLIGHT:
KINGDOM OF
SAUDI ARABIA
by 2024. Or the Tatweer School
program, which aims to build
10,000 new schools in 10 years.
Furthermore, in the healthcare
sector, it is reported that one in six
hospitals globally will be built in
Saudi Arabia in the coming years.
Saudi Arabia has achieved
phenomenal progress in its
built asset stock in recent years,
recording a 200% growth rate
between 2000 and 2014. From a
global perspective, Saudi has the
third highest rate in the world.
Built asset spending is forecasted
to slow down in 2015, primarily
due to recent leadership changes
and lower oil prices; however in
the medium term, itx is expected
to see substantial growth. Saudi is
projected to surpass Russia, the UK
and Canada by 2025.
This is primarily driven by
government spending, supported
by oil revenues and fiscal reserves
accumulated when oil prices were
high. The investments are geared
to meet the expectations of a
growing population in terms of
infrastructure and social services,
including the education, healthcare
and housing segments. The focus
on economic diversification and job
creations, including through trade
and new policies to attract foreign
investments, are also providing
impetus for the built asset sector.
The growth is manifested by
the large scale programs being
announced, like the plan to build
500,000 homes within five years in
order to move the country towards
its goal of 80% home ownership
The country is often perceived
as a difficult environment for
international contractors for
various reasons such as tight
regulations or ease of doing
business, but the government is
taking progressive steps toward
addressing those issues. Saudi
Arabia needs to strike the right
balance between promoting local
human capital, ‘Saudisation’, and
facilitating the critical supply of
foreign expertise and labor.
Despite the challenges, Saudi
Arabia is clearly emerging as a
major player in the built asset
sector.
COUNTRY
SPOTLIGHT:
NETHERLANDS
In recent years the Netherlands
has suffered as a result of the
financial crisis, however since 2014
an economic recovery is visible.
In real estate, some sectors are
anticipated to grow in the year
ahead as investors are expected
to be less risk averse. The focus of
investments is concentrated mostly
on Amsterdam, but also on other
major cities including Rotterdam,
Utrecht and The Hague. Reuse of
existing assets is preferred over
the creation of new assets since
7 million square metres are still
vacant (2.3 million have already
been transformed or demolished.)
As the Netherlands is partly
situated below sea level, the
government continuously invests
in large water safety programs.
Alongside rivers, nature is given
more space to accommodate rising
water levels in order to keep cities
and population safe. In the coastal
areas dikes and barrages are being
reviewed on their strength and
improvement programmes are
rolled out when needed.
The infrastructural quality of
the network of roads and railway
is already of a high standard in
comparison to the density of
these networks. Despite this,
governments (both national and
local) are still putting their efforts
into further improvements. In
Amsterdam contractors have
been working on the North to
South metro line for years already.
Recently financial support of €210
million by the municipality of
Amsterdam has been given to
the project organization of
the ‘Zuidas-dok’. With this
financial support next steps for
procurement can be taken in order
to start constructing the tunnels
for the major highway A10 at the
beginning of 2017.
22
4.2Implications for the global economy
The implications for the global economy of China’s intense asset investment
depend on its character. It will be difficult for the state, which still commands much of the economy, to find productive uses for further stimulus so the
performance of the new assets may take time to impact GDP.
With US$3.8 trillion of reserves
at its disposal and faced with
diminishing returns to investment
domestically, China is now seeking
to redirect its capital so that more
of it goes outside its own borders.
This will also solve the problem of
providing employment for those in
China’s infrastructure investment
supply chain, as many Chinese
companies investing abroad are
expected to bring in their own
supply chains to complete these
investments.
Growing involvement in regions
such as South East Asia and Africa
shows how Chinese finance is not
just building its own, but also other
countries’ asset stocks. China’s
newly founded Asian Infrastructure
Investment Bank (AIIB), though
currently junior to the Japanesecontrolled Asian Development
Bank, will intensify this process.
There is a clear scope for the AIIB
to raise Asia’s built asset stock in
light of the region’s large backlog
for infrastructure development.
This is largely a legacy of the Asian
financial crisis of the late 1990s.
The Asian Development Bank,
for example, has said that the AsiaPacific region needs US$8 trillion in
infrastructure funding to overcome
this legacy.
However, much of China’s
outbound investment is also
destined for further beyond its
borders. Investment in advanced
economies, especially in Europe,
is expected to see a notable
shift. This will be motivated by
China’s desire to expand to more
developed markets in order to gain
from their know-how in its efforts
to move up the industrial value
chain and successfully perform the
shift towards greater value-added
forms of production.
For the US, Japan and other
more developed countries whose
stock of built asset wealth is in
decline, they need to address this
by attracting finance from new
sources in order to reinvest where
it is needed most or they will lose
their competitive edge for years
to come.
5.HOW CAN BUILT
ASSETS BE MADE TO LAST?
A strategically planned, highly developed and well maintained built
environment is critical to the economic and social success of a nation. This report clearly shows that whilst some countries are struggling to replace their
aging built assets, others are stockpiling built asset wealth in the hope of creating long term returns. In order to understand the driver for built asset development it is important to better understand the cycle of development that each nation goes through on its journey to prosperity.
To illustrate this we can use an adaptation of Maslow’s Hierarchy of Need for built asset development.
As countries build to develop their
economies, their requirements
change and the amount they
spend on capital expenditure
over operational expenditure, or
maintenance, evolves. The basic
built asset needs of a nation are
often expensive including housing
and energy supply. Without these
in place, a nation will struggle to
build a long-lasting platform for
economic growth.
This can be seen through the Built
Asset Index as many economies
in Asia and the Middle East are
literally ‘nation building’. They are
spending huge sums of money to
develop their built environment
with the aim of creating longterm economic value. In some
cases these countries are jumping
ahead by creating iconic built asset
developments to compete with
rival nations. This is particularly
true in the Middle East where
some construction projects are
being undertaken to make a vanity
statement rather than for direct
economic or social return.
In order to succeed in meeting
their goals, these fast developing
nations need to learn from the
mistakes of the more maturely
developed countries in the West.
The Built Asset Index shows that
many of these nations are seeing a
24
net depreciation in their built assets
through not investing enough back
into the first stages of the hierarchy
of needs. This is leaving them with
a built asset deficit which could
take many years to make up.
IS THE NEW STOCK OF
BUILT ASSET WEALTH
BEING MADE TO LAST?
As nations build and strengthen
in the East, those in the West are
struggling to attract the funding
they need to replace, maintain and
build new stock. Countries at both
ends of this spectrum can learn
from each other to help ensure that
their built assets are made to last.
LEARNINGS FROM
DEVELOPED
ECONOMIES
Consider the whole lifecycle cost
of the asset
Without the necessary funds to
replace aging infrastructure, many
countries in Europe have had to
master the art of maintaining their
existing assets so that they retain
value long after they should have
become redundant. One example
of this is in London where the
Victorian age sewage system is still
being used nearly 150 years after it
was constructed.
The key to making assets work for
as long as possible is to consider
the whole lifecycle of the asset
being created, and put in place
a robust asset management
strategy that prioritizes spend to
maintain, not just build the asset.
This should be done through
understanding the asset and
monitoring its condition, as well
as putting in place the capability
and funds to maintain it in a cost
effective way. One way to source
this maintenance funding could
be through devolving financial
responsibility away from central
government which may have
originally paid for the asset to the
end user or local tax payer.
LEARNINGS FROM
EMERGING ECONOMIES
Create a clear investment
framework
Many of the nations that are
investing in their built environment
have set in place a framework to
attract investment to help fund
their built asset investments. Those
nations in the West that are facing
a depreciating built asset base
could take on board some of these
strategies to help make themselves
more attractive to investors.
Capital spending decreases
as development moves
up the value chain,
but adequate asset
maintenance is holding
some back
5
Status - iconic buildings, science, R&D
4
Culture & leisure – theatres, museums,
sports, entertainment, tourism
3
Tertiary economy – office/ commercial, advanced
transport, healthcare, higher education
2
Secondary economy– factories, mass transport,
basic education/ healthcare
1
Basic - shelter, housing, food, water supply, energy
resources, protection, basic transport
FIGURE 8 HIERACHY OF BUILT ASSET NEED DRIVING DEVELOPMENT
Firstly, creating a clear vision
for policy and pipeline for
development. Many of the leading
built asset growth nations have
long term plans for growth set out
by the government. This provides
potential investors with a clear
picture of what is planned,
Secondly, accelerate and clarify
major policy decisions around
energy and transport. Uncertainty
impedes innovation and the ability
to attract the funds and capability
now. Delays in decision making are
also likely to cause cost inflation
at the back end of the programs
as the timeline will become
compressed.
Finally, set in place transparent
regulatory models to encourage
investment and investable projects.
Utilities and transport are good
examples where stable and
predictable returns can enable
sustained investment at mutually
beneficial rates of return.
SUMMARY
As we can see, the built asset development race seems set to continue
well into the next decade as developing nations look to secure their long
term economic future. Establishing a foundation built on bricks, mortar
and infrastructure is a fundamental priority. Not all will be successful as
they build too much of one asset type or too little of another. Furthermore, if they are to be successful they will need to look to the troubles
facing the more mature economies and think long term if their built
assets are to last.
Overall, the most successful nations will be those that consider the whole
lifecycle of the assets they are building in order to thrive. Through doing
this, built asset owners can be more confident that the assets they are
creating will be built to last and can underpin a successful economic and
social future.
Our next built asset report will revisit the performance of the assets
being created and which nations are squeezing the most GDP out
of them.
6.APPENDIX
6.1Methodology
DEFINING BUILT
ASSETS
For the purposes of this research
‘built assets’ are defined as
including all tangible fixed capital
investment counted in the national
accounting framework used by
national statistical offices. This
includes infrastructure investment, construction, investments in plant
and machinery and improvements
in ‘natural assets’ such as land
reclamation. The definition
excludes all intangible investments,
such as expenditure on software
and data, as well as investment
in mineral exploration, the vast
majority of military expenditure
and forms of intellectual property.
CALCULATING THE
STOCK OF BUILT
ASSETS
These were drawn from
international best practice,
including the Bureau of Economic
Analysis, the Organisation for
Economic Cooperation and
Development and the World Bank.
Following this guidance, an average
service life for each
of the components of fixed
capital formation (residential and
non-residential construction and
machinery and equipment) was
established. This works out around
14 years for assets of machinery or
plant and approximately 70 years
for construction assets. The rate
of depreciation in each economy
depends on the ratio between
these two quantities in its overall
stock of assets.
The built asset stock was estimated
via the following stages:
3. Forecasting the stock of
built assets
1. Establish the composition of
fixed capital formation for
each country
Having established estimates for
the initial stock of built assets in
each of the 32 countries within
our sample, forecasting the
change in these stocks requires,
for each country, an assessment
investment growth in constant
purchasing power parity adjusted
to US dollars, the composition of
investment, the depreciation of
the existing stock and the rate of
population growth.
Fixed capital formation was broken
down into construction (including
infrastructure) and machinery
and equipment. Where these data
were not available, estimates for
the composition of fixed capital
were compiled based on economic
relationships derived from similar
countries within our sample.
26
2. Formulate depreciation schedules for each component
of fixed capital formation
Cebr relied upon internal forecasts
for GDP growth for those countries
where detailed forecasts are
produced, and made use of IMF
forecasts for the investment
share of GDP for countries for
which Cebr does not produce such
detailed forecasts. To forecast the
composition of investment, or fixed
capital formation, Cebr established
econometric relationships in each
of the countries within our sample
to estimate its evolution over the
forecast horizon.
Purchasing power parity takes
account of the fact that at market
exchange rates, the same number
of dollars goes further in poorer
countries, making it a better
reflection of living standards.
Nevertheless, GDP at market
exchange rates is also an
important measure.
PURCHASING POWER
PARITY (PPP)
AUTHORSHIP AND
ACKNOWLEDGEMENTS
In order to compare the relative
value of assets appraised in
different countries, a Purchasing
Power Parity (PPP) measure is
used to account for the sometimes
significant variation between price
levels across countries and to
correct for currency fluctuations.
This report has been produced by
Cebr, an independent economics
and business research consultancy
established in 1992. The views
expressed herein are those of the
authors only and are based upon
independent research by them.
DISCLAIMER
Whilst every effort has been
made to ensure the accuracy of
the material in this document,
neither Centre for Economics
and Business Research Ltd nor
Arcadis will be liable for any loss or
damages incurred through the use
of the report. The report does not
necessarily reflect the views
of Arcadis.
6.2 Data sources
NATIONAL SOURCES
Australian Bureau of Statistics - http://www.abs.gov.au/
National Bank of Belgium - http://stat.nbb.be/
Brazilian Institute of Geography and Statistics - http://www.ibge.gov.br/english/
Statistics Canada - http://www.statcan.gc.ca/start-debut-eng.html
National Bureau of Statistics China - http://www.stats.gov.cn/english/
French National Institute of Statistics and Economic Studies - http://www.insee.fr/en/
German Federal statistics office - https://www.destatis.de/EN/Homepage.html
Hong Kong Census and Statistics Department - http://www.censtatd.gov.hk/
Indian Ministry of Statistics - http://mospi.nic.in/
Italian National Institute of Statistics - http://en.istat.it/
Japanese Ministry of Internal Affairs and Communications - http://www.soumu.go.jp/english/
Malaysian Department of Statistics - http://www.statistics.gov.my/main/main.php
Mexican National Institute of Statistics and Geography - http://www.inegi.org.mx/
Statistics Netherlands - http://www.cbs.nl/en-GB/menu/home/default.htm
Russian Federal State Statistics Reserve - http://www.gks.ru/wps/wcm/connect/rosstat_main/rosstat/en/main/
Saudi Arabian Central Department of Statistics and Information - http://www.cdsi.gov.sa/english/
Department of Statistics Singapore - http://www.singstat.gov.sg/
Statistics Korea - http://kostat.go.kr/portal/english/index.action
Spanish National Institute of Statistics - http://www.ine.es/en/
Turkish Statistical Institute - http://www.turkstat.gov.tr/Start.do
UK Office for National Statistics - http://www.statistics.gov.uk/hub/index.html
US Bureau of Economic Analysis - http://www.bea.gov/
INTERNATIONAL SOURCES
International Monetary Fund, World Economic Outlook, October 2014.
Accessed via Macrobond.
Penn World Table, Alan Heston, Robert Summers and Bettina Aten, Penn World Table Version 7.1, Center for
International Comparisons of Production, Income and Prices at the University of Pennsylvania, Nov 2012.
Accessed via Macrobond.
7. FURTHER
READING
GLOBAL
BUILT ASSET
PERFORMANCE INDEX 2014
Which countries gain the best economic returns
from their buildings and infrastructure?
GLOBAL BUILT ASSET
WEALTH INDEX 2013
SUSTAINABLE
CITIES INDEX 2015
Balancing the economic, social and environmental
needs of the world’s leading cities
SECOND GLOBAL
INFRASTRUCTURE
INVESTMENT
INDEX 2014
Competing for private finance
¥
GLOBAL CONSTRUCTION
DISPUTES REPORT
2015
The Higher the Stakes,
The Bigger the Risk
www.arcadis.com
www.arcadis.com/builtassetindex
30
€
$
£
If you have any questions regarding the issues covered in this index or would like to discuss the
index further please contact the Business Advisory Leader for your region or sector.
Tom Morgan
Business Advisory Leader
North America
E [email protected]
Gareth Robbins
Business Advisory Leader
Australia Pacific
E [email protected]
Alan Richell
Business Advisory Leader
Middle East
E [email protected]
Esteban Azagra
Water Business Advisory Leader
E [email protected]
Greg Bradley
Business Advisory Leader UK
E [email protected]
Adam Sutton
Business Advisory Leader Asia
E [email protected]
Julien Cayet
Business Advisory Leader
Continental Europe
E [email protected]
Don Hardy
Infrastructure Business Advisory
Leader
E [email protected]
Jim Hill
Environment Business Advisory
Leader
E [email protected]
LEAD CONTRIBUTORS
Julien Cayet
Global Leader Business Advisory
Buildings Business Advisory Leader
E [email protected]
Alasdair Cavalla
Centre for Economics and Business
Research
E [email protected]
Arcadis
9385ARC
@ArcadisGlobal