State spending by Chinese having ’significant’ impact on regional infrastructure markets
Massive investment by the Chinese government is having a ’significant’ impact on regional infrastructure markets according to a survey of 140 global contractors and engineers.
Chinese money was driving growth across the Asia-Pacific rim according to a third of the respondents in the KPMG survey.
The respondents said that government investment in Europe, the Americas, the Middle East and Africa was having little or no effect on infrastructure markets.
In China state investment had filtered down to infrastructure projects at a regional level, carried out by mainly government-owned construction companies.
The survey of 140 global engineering and construction companies found many contractors were considering moving into new regions to improve profitability.
Almost half of the worldwide respondents expect an increase in workloads in the next year, driven by pent-up demand and expansion. Respondents in the Asia-Pacific rim were particularly optimistic, with 21% expecting workloads to increase significantly.
The job market is also holding up in the region, with only one in seven companies saying they had had to make job cuts.