S&P Capital IQ: Sector Disruptors: Infrastructure


This May 2015 report identifies and explores critical infrastructure issues for each of the S&P 500 index’s 10 economic sectors.

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May 2015 report from S&P Capital IQ.

Sector Disruptors

Infrastructure Infrastructure is more dynamic than just bricks and mortar even though it does conjure up images of bulldozers and cranes building new roads and bridges. It’s a topic that has become increasingly important to both the global economy and the daily lives of billions of people around the world. In fact, Standard & Poor’s Ratings Services has estimated it would cost $3.6 trillion just to bring more traditional infrastructure in the U.S. to a “state of good repair.”

However, developments related to less tangible things like the prices of certain commodities, emerging technologies, new rules and regulations, and changing spending and financing trends can significantly affect how those in our country and foreign nations think about and invest in infrastructure and how they position themselves for growth in the 21st century.

Although infrastructure has historically been driven by publicly funded resources, that dynamic is changing. Reflecting significant regulatory developments, constant technological innovation, and record-low interest rates around the world, private investment in infrastructure is becoming an increasingly powerful force.

S&P Capital IQ Equity Research takes this broader view of infrastructure as a hybrid of public and private investment with far-reaching implications for S&P 500 companies. It has identified and explored critical infrastructure issues for each of the index’s 10 economic sectors. Importantly, the authors not only addressed sectors more regularly considered in the context of infrastructure, such as industrials and utilities but also those less obviously involved, including health care and information technology (IT) and even consumer discretionary and consumer staples.

For each sector, the authors identify an infrastructure-related theme, explain why it is important now, describe existing and/or potential impacts, and highlight potential winners and losers.