...Rui Silva, spokesman for AICCOPN–Associação dos Industriais da Construção Civil e Obras Públicas, Porto. But he fears uncertainties about the upcoming election may leave many proposed infrastructure projects "in the drawer."

The U.K. remains a strong market, but with some concern regarding public infrastructure funding looming on the horizon. "Government long-term spending plans for transportation infrastructure have begun to appear less solid than they first appeared," says Tony Allum, chairman of Halcrow Group Ltd., Swindon. He notes that the deputy prime minister and transport secretary recently have been accused of backtracking on the 10-year transport plan.

Some countries are benefitting from government initiatives to spur their economies. Ireland continues to boom thanks to business-friendly policies. "The favorable tax for business and especially export business there continues to pull in U.S. companies setting up for Europe," says Jennings of Rotary Group.

Another country using construction to spur its economy is Thailand. "One of the measures to stimulate the economy is to spend a lot of money on public works, especially the construction of infrastructure such as the airport, mass rapid transit, and expressways," says Sompop Pinijchai, vice president of Italian-Thai Development, Bangkok. He says infrastructure investment also is stimulating demand in the private sector. The impact of the tsunami on Thailand’s construction program is unclear as damage estimates continue to be tallied.

On the other hand, Turkey’s tightening monetary policy, recommended by the International Monetary Fund to lower inflation, has resulted in the cancellation of many jobs, says Mehmet Artun, managing director of GAMA Endustri AS. In the long-term, current talks about Turkey joining the European Union may spur the economy and construction, says Sima Özbek, presentation chief for Enka Construction & Industry Co. Inc., Istanbul. Still, "the outlook for 2005 domestic construction market is still not very encouraging," Artun says.

Different Deals

Many countries are experimenting with public-private partnerships to stimulate infrastructure spending. For example, in Spain, "public-private partnerships will allow the sustainability of civil works spending," says SEOPAN’s Duelo.

But in Canada, this approach is still under review. Public agencies are under pressure to spend money to expand and improve infrastructure but also are under pressure to hold the line on taxes and cut spending, says Brian T. Sirbovan, vice president for program management for Edmonton-based Stantec. He says public-private partnerships have been tried, "but the jury is out on whether it fits the Canadian construction model."

The Global Insight study projects that the Middle East and Africa will be healthy markets for the next four years. "Iran is actually the largest market in the Middle East, with $18.7 billion spent in 2003," says Holling. He says Iran also will have a higher growth rate than the next largest market, Saudi Arabia, which the study projects to grow 3.5% annually.

Iran is booming, but that is leading to new problems. Competition is tight and clients are squeezing contract prices, says Fardad Daliri, director of marketing and contracts for IDRO–Industrial Development & Renovation Organization of Iran, a Tehran-based contractor. "Construction work is increasing, especially in oil, gas, petrochemical, power, steel industries and infrastructure," he says.

Growth in the wake of the Iraq war seems to be the rule in the Gulf region. "In our forty years of existence we haven’t witnessed a boom of this magnitude in the construction industry," says Wassim Merhebi, director of Arabian Construction Co., Abu Dhabi. He believes the "comfort level" for investment has risen in most countries in the region. "We anticipate an even larger spending for the next two to three years," he says.

China is the fastest growing market, according to Global Insight. "We are projecting a 6.2% annual growth rate in the market through 2008," says Holling, with 7.3% annual growth in the infrastructure market.

China’s booming economy has some wide-reaching effects. Australia’s healthy construction market is driven by infrastructure and natural resources work, helped in part to serve China’s needs, says Paul Dougas, CEO of Sinclair Knight Merz, a St. Leonard’s-based engineering firm. Even if there is a fall-off in China’s needs, "there is a tremendous amount of construction work required to meet the current demand," he says.