A recent boost in infrastructure deals may be indicative of trends in the market about the market.
Currently, many infrastructure deals have been made outside the U.S., decreasing the value of the domestic market and taking jobs overseas. However, a recent trend in deals within the U.S. may suggest the tides are about to turn, Pensions and Investments noted.
Marietta Moshiashvili, managing director and group head of energy and infrastructure private markets at New York-based TIAA-CREF Asset Management, noted that as the U.S. market grows overall, they expect the same to happen to the infrastructure market.
While there is a difference between making deals and actually creating new infrastructure, experts are hopeful that the market will increase as many states consider the idea of allowing private capital to fund infrastructure projects. While President Obama is pushing for clean energy, which may hinder the market, there are still plenty of deals being made.
In June, the Global Infrastructure Partners II fund bought 50 percent interest in Hess Corp.’s Hess Infrastructure Partners for $2.7 billion. One section of New York’s La Guardia Airport will be built for $3.6 billion by a group including construction company Skanska USA and Vantage Airport Group.
These deals and others to come may help boost the number of jobs in the infrastructure market.
However, the only security for job creation in this market may be to pass a bill through Congress. In July, the U.S. Bureau of Labor Statistics reported that jobs in the manufacturing industry slightly rose and ones in the construction industry remained unchanged. Adding a long-term infrastructure bill could boost wages and add jobs, U.S. deputy labor secretary Chris Lu told the Guardian. Having a bill in place may help keep jobs in the U.S. instead of sending them overseas.