Infrastructure and Construction| USA and the World| January 2022

USA – INFRASTRUCTURE
AND BUILDING PERMITS
Paul Young CPA CGA
March 6, 2022

PAUL YOUNG - BIO
• CPA, CGA (1996)
• Academia (PF1, FA4, FN2, MU1. and MS2)
• SME – Customer Success Management
• SME – Risk Management
• SME – Close, Consolidate and Reporting
• SME – Public Policy
• SME – Emerging Technology
• SME – Business Process Change
• SME – Financial Solutions
• SME – Macro/Micro Indicators
• SME – Supply Chain Management
• SME – Data, AI, Security, and Platform
• SME – Internal Controls and Auditing
Contact information email: Paul_Young_CGA@hotmail.com
LinkedIn: https://www.linkedin.com/in/paul-young-055632b/
SlideShare - https://www.slideshare.net/paulyoungcga
Twitter: https://twitter.com/paulyoungcpa
Youtube - https://www.youtube.com/user/youngercga1968/videos

AGENDA
• Global Infrastructure / Roads
• World Bank Infrastructure
• IMF/Infrastructure
• China and Infrastructure
• Historical Infrastructure Spending / USA
• New Infrastructure spending / Biden
• Infrastructure GAP/United States
• Building Permits / January 2021
• Taxation / Hikes
• Supply Chain Management
• USA port expansion
• Supply Chain Risks
• Energy Crisis
• Summary
• Training /Development links
PRESENTATION TITLE 2/11/20XX 3

WE FORUM / FOCUS OF INFRASTRUCTURE
Source - https://www.weforum.org/agenda/2021/01/four-big-infrastructure-trends-for-2021/

GLOBAL INFRASTRUCTURE – ROAD
INFRASTRUCTURE
Source - https://www.nationmaster.com/nmx/ranking/road-infrastructure-spending

WORLD
INFRASTRUCTU
RE SPENDING
• Source -
https://documents.worldbank.org/
en/publication/documents-
reports/documentdetail/97057154
9037261080/hitting-the-trillion-
mark-a-look-at-how-much-
countries-are-spending-on-
infrastructure or
https://www.weforum.org/agenda/
2019/04/infrastructure-gap-heres-
how-to-solve-it/

IMF / INFRASTRUCTURE
Source - https://www.imf.org/external/np/g20/111920.htm

CHINA AND GLOBAL INFRASTRUCTURE
• China continues to build and finance infrastructure projects in Africa - http://www.sais-cari.org/data-
chinese-contracts-in-africa
• China and the Belt Road - https://www.constructionglobal.com/construction-projects/china-belt-and-road-
initiative-spending-hit-pandemic
• China and developing countries / loans - https://www.reuters.com/article/us-china-emerging-
debt/database-reveals-secrets-of-chinas-loans-to-developing-nations-says-study-idUSKBN2BN0EY
• China and supply chain - https://www.arabnews.com/node/1418636/business-economy
• NATO and China’s control of transportation routes -
https://www.defensenews.com/global/europe/2021/03/04/nato-grapples-with-grasping-chinas-
transportation-clout-in-europe/

HISTORICAL USA INFRASTRUCTURE
SPENDING
Source - https://www.spglobal.com/en/research-insights/featured/infrastructure-
productivity-boost-coronavirus

NEW INFRASTRUCTURE SPENDING /
BIDEN
Source -
PRESENTATIOhttps://www.cnbc.com/2021/03/31/biden-infrastructure-plan-includes-corporate-tax-hike-transportation-spending.htmlN
TITLE
2/11/20XX 10

INFRASTRUCTURE GAP / UNITED STATES
Source - https://www.mckinsey.com/business-functions/operations/our-insights/reimagining-infrastructure-in-the-united-states-how-to-build-
better#

BUILDING PERMITS/ UNITED STATES
Source - https://www.mckinsey.com/business-functions/operations/our-insights/reimagining-infrastructure-in-the-united-states-how-to-build-
better#
USA - Construction
Permits - January 2022.pdf

STATE AND LOCAL GOVERNMENT
INFRASTRUCTURE
Source - https://www.pgpf.org/blog/2020/06/state-and-local-infrastructure-spending-a-closer-look

TAXATION ISSUES / USA GOVERNMENT
• Hikes to property, sales, and other taxes - https://www.pewtrusts.org/en/research-and-
analysis/blogs/stateline/2020/07/17/tax-hikes-in-a-pandemic-some-states-cities-say-yes
• Connecticut, Idaho, Massachusetts and Vermont have enacted or are pursuing budgets without tax increases.
The circumstances in each state are different. Idaho did not experience the budget shortfalls that virtually all
states faced in 2020 and in-fact experienced healthy second quarter 2020 growth in both personal income tax and
sales and use taxes over the same quarter last year. Connecticut, Massachusetts and Vermont took advantage of
significant rainy day funds to avoid tax increases. Many states will look to rainy day funds to trim anticipated
deficits, although many states have already used up their reserves throughout 2020. While the results in these
states look promising in terms of avoiding tax increases, they may not be typical.https://rsmus.com/what-we-
do/services/tax/state-and-local-tax/income-and-franchise/some-states-appear-to-hold-the-line-on-taxes-most-
wont.html
• There is little doubt that legislators will introduce an unprecedented amount of proposed tax laws in the coming
year. Given the states dire fiscal conditions, many proposals to raise taxes will be enacted. Businesses ignoring
the legislative process until laws are passed run risks. They will miss the opportunity to influence legislative
outcomes. They will also lose precious time in planning to deal with change. But closely following the legislative
process presents many opportunities. Companies can influence legislation. They can also begin planning for what
might be a very different tax environment. The RSM State and Local Tax Team encourages the business
community to tax the latter approach.-Sales Tax – Source - https://taxfoundation.org/2021-sales-taxes/ or
https://rsmus.com/what-we-do/services/tax/state-and-local-tax/income-and-franchise/state-tax-changes-are-
coming-be-prepared.html
• Would the USA introduce a national sales tax? - https://www.taxpolicycenter.org/briefing-book/what-would-tax-
rate-be-under-national-retail-sales-tax
• Property taxes - https://www.mansionglobal.com/articles/which-u-s-states-have-seen-the-biggest-property-tax-
hikes-in-recent-years-200735
• Biden tax policies - https://www.taxpolicycenter.org/taxvox/biden-follows-through-his-campaign-promise-big-tax-
hikes-us-corporations

SUPPLY CHAIN
Blog – How best to manage your supply chain.
1. Large container ships and emissions - https://www.bloombergquint.com/gadfly/huge-container-ships-biggest-problem-is-emissions
2. Port productivity - https://www.joc.com/port-news/us-ports/tpm21-one%E2%80%99s-nixon-says-us-port-productivity-gaps-mean-
congestion-months_20210302.html
3. Nearshoring - https://investmentmonitor.ai/manufacturing/think-nearshoring-will-bring-back-us-manufacturing-jobs-think-again/
Countries need to be more competitive with their policies in areas of taxation, environment, and other regulatory areas.
4. Data and AI will play a bigger role as part of supply chain management -
https://www.scmr.com/article/the_future_of_supply_chain_management_is_ai_and_data
5. Ability of canal systems to handle the flow of goods - https://www.agcs.allianz.com/news-and-insights/expert-risk-articles/suez-canal-
mega-ships.html
6. Moving supply chain areas from China to manufacturers as part of moving away from China influence - https://www.news-
press.com/story/opinion/2021/03/15/bring-critical-supply-chains-home-biden-china-mineral-markets/4692255001/
7. Standardized ESG reporting including rankings in areas like human rights or environment or other areas -
https://ibm.box.com/s/vmyitcackqevvm1hcxv7wke6gudrpnce
8. Development of new logistic projects like one belt road - https://fortune.com/2021/03/24/china-belt-road-initiative-soft-power/
9. Costs of moving freights - https://www.hellenicshippingnews.com/fbx-index-looking-forward-3/
10. Global inflation - https://www.bloomberg.com/news/articles/2021-03-11/inflation-is-already-creeping-into-some-corners-of-the-world
Here is my work on the supply chain - https://www.slideshare.net/paulyoungcga/how-to-better-manage-your-supply-chain

USA PORT EXPANSION / SUPPLY CHAIN
INVESTMENTS
1. Expansion of the Port of Houston - https://www.maritime-executive.com/article/port-of-houston-busiest-
us-port-in-tonnage-as-expansion-continues
2. Port expansions - https://www.globaltrademag.com/americas-expanding-ports-ports-investing-to-
improve-their-market-share/
3. Four new natural gas pipelines - https://oilprice.com/Latest-Energy-News/World-News/Four-New-
Natural-Gas-Pipelines-Come-Online-In-The-US.html
4. Oil Pipelines - https://www.eia.gov/todayinenergy/detail.php?id=44056
5. BNSF - https://www.freightwaves.com/news/bnsf-outlines-3-billion-capital-investment-budget-for-2021
6. USA Railroads - https://www.up.com/customers/track-record/tr090820-us-rail-envy-of-the-world.htm

SUPPLY CHAIN RISKS
Here is my work on supply chain -
https://ibm.box.com/s/63aqf8jo004v2bo5f8cf6eppgglhbvs5
Supply Chain Disruption / Suez
The Suez Canal is the latest example of how both the public and
private sectors need to embrace crisis management including having
their crisis management report audited every year.
https://www.slideshare.net/paulyoungcga/how-to-better-manage-
geopolitical-events
Source - https://supplychaingamechanger.com/top-10-
global-supply-chain-risks/

MONITORING OF INFRASTRUCTURE
ASSETS
Blog – How best to Identify Climate Risks with Portfolios - https://www.linkedin.com/pulse/blog-how-best-identify-climate-
risks-portfolios-paul-young/?published=t
What is climate risk and stress testing?
The European Central Bank is stress testing the broader economy to assess the economic risk of climate change
three decades into the future, the bank's vice president said on Thursday.
While full results of the test, which includes four million companies worldwide and almost all euro zone banks,
will be published in mid-2021, early results show there is a clear benefit to early action, Luis de Guindos said.
Source - https://www.saltwire.com/halifax/business/reuters/ecb-stress-testing-broader-economy-over-climate-risk-de-
guindos-564985/
Basel committee is looking at changes to BASEL reporting as it relates to climate risk -
https://www.regulationtomorrow.com/eu/basel-committee-report-on-climate-related-risk-drivers-and-their-transmission-
channels/
Insurance sector - https://www.insurancebusinessmag.com/nz/news/breaking-news/insurance-most-ahead-of-the-game-in-
assessing-climate-change-risk-254051.aspx
More monitoring tools - https://www.planet.com/pulse/building-a-new-world-infrastructure-monitoring-for-a-more-
sustainable-future/ or https://progressive-tsl.com/renewable-energy-asset-management/

BLOG – ENERGY
CRISIS
Australia exported 3-13 million tons per month of coal to China in 2020. If China needs 50 million tons per month
that is rapid increase in coal production. It is unclear in China and Australia would be able to ramp to meet the
demand. China is already in a shortage of perhaps 50 million tons per month.
If there is a rapid surge in coal importing to China, there could be overbidding that causes shortages for other Asian
countries. This will also make the supply chain problems even worse.
Prioritizing heating over electricity means more factory shutdowns.
Prioritizing heating coal imports over other supply chain means that the 200 ships waiting to get unloaded get
bumped back at the ports for hundreds of coal ships.
China having coal production problems is tough because building other sources of electricity and heating will take
years. Especially if China wants to get beyond current levels to support 6% per year GDP growth.
https://www.nextbigfuture.com/2021/10/173364.html?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3
A+blogspot%2Fadvancednano+%28nextbigfuture%29
This ties nicely to my work on energy - https://www.linkedin.com/pulse/world-heading-energy-crisis-paul-young/

SUMMARY
• Higher material costs continue plague the construction sector
• Cities want more focus on fixing existing infrastructure including roads and bridges
Blog – Construction – United States – January 2022
USA - Construction
Permits - January 2022.pdf
Federal Infrastructure
Spending, 2016-17 to 2026-27.pdf
Federal Infrastructure
Spending, 2016-17 to 2026-27.pdf
City Leaders Back
Biden in Controversy Over Infrastructure Spending - Route Fifty.pdf
Inflation is Stealing
Construction Spending and Profits For Construction Pros.pdf
Cement stocks under
pressure as price hikes offer little solace.pdf
Weekly Bitumen
Report Shadows of the War Spreads All Over the Market - bitumen price - last updated bitumen price - Price now.pdf
Steel Pricing Weekly
Average.pdf
What Percentage Has
Inflation Increased Construction Cost – lietaer.com.pdf
Scientists’ automated
new asphalt 3D printer paves the way for safer roads - 3D Printing Industry.pdf
World's First 3D
Printed Concrete Pedestrian Bridge Opens in Spain For Construction Pros.pdf
Six post-pandemic
margin-creation opportunities for construction - Proudfoot.pdf
7 Innovations that
Will Change Construction - Digital Builder.pdf
Canadian New Home
Building Intentions Are Well Into Correction Territory - Better Dwelling.pdf
Top 10 Construction
Stories This Week DeCarlo Demolishes a 1959-Vintage Sears Store For Construction Pros.pdf
newresconst.pdf US construction
spending up 1.3 percent in January.pdf
Summary:
Construction spending during January 2022 was estimated at a seasonally adjusted annual rate of
$1,677.2 billion, 1.3 percent (±0.8 percent) above the revised December estimate of $1,655.8
billion. The January figure is 8.2 percent (±1.2 percent) above the January 2021 estimate of $1,549.8
billion.
Source - https://www.steelorbis.com/steel-news/latest-news/us-construction-spending-up-13-percent-
in-january-1235342.htm and
1. Canada Federal infrastructure funding - https://www.pbo-dpb.gc.ca/en/blog/news/BLOG-2122-
008--federal-infrastructure-spending-2016-17-2026-27--depenses-federales-infrastructure-
2016-2017-2026-2027
2. Top stories - https://www.forconstructionpros.com/business/article/21577374/top-10-
construction-stories-this-week-decarlo-demolishes-a-1959vintage-sears-store
3. Local government - https://www.route-fifty.com/infrastructure/2022/02/city-leaders-back-
biden-controversy-over-infrastructure-spending/362551/
4. Construction costs - https://www.forconstructionpros.com/business/article/10837297/inflation-
is-stealing-construction-spending-and-profits
5. Cement - https://www.livemint.com/market/mark-to-market/cement-stocks-under-pressure-
as-price-hikes-offer-little-solace-11646369777074.html
6. Bitumen - https://bitumenprice.org/weekly-bitumen-report-shadows-of-the-war-spreads-all-
over-the-market/
7. Steel pricing - https://www.unarcorack.com/steel-average/
8. Wages - https://www.lietaer.com/2022/03/what-percentage-has-inflation-increased-
construction-cost/

OTHER
SOURCES
• If you like to learn more
about trade and/or other
subjects as part of your
professional learning and,
development then feel
free to review my material
on
https://www.udemy.com/
(search Paul Young CPA
CGA

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