Blog – Construction Spending and Capital Spending Outlook – The United States and the World – August 2022 Summary: A report released by the Commerce Department on Monday showed construction spending in the U.S. decreased by more than expected in the month of August. The Commerce Department said construction spending fell by 0.7 percent to an annual rate of $1.781 trillion in August after sliding by 0.6 percent to a revised rate of $1.794 trillion in July. Economists had expected construction spending to dip by 0.3 percent compared to the 0.4 percent drop originally reported for the previous month. The bigger than expected decrease in total construction spending came as spending on private construction decline by 0.6 percent to an annual rate of $1.426 trillion. Source - https://www.nasdaq.com/articles/u.s.-construction-spending-decreases-more-than-expected-in-august

1. INFRASTRUCTURE AND
CONSTRUCTION
SPENDING – USA AND THE
WORLD
Paul Young CPA CGA
October 5, 2022

2. 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

3. 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

4. WE FORUM / FOCUS OF INFRASTRUCTURE
Source - https://www.weforum.org/agenda/2021/01/four-big-infrastructure-trends-for-2021/
PRESENTATION TITLE 2/11/20XX 4

5. GLOBAL INFRASTRUCTURE – ROAD
INFRASTRUCTURE
PRESENTATION TITLE 2/11/20XX 5
Source - https://www.nationmaster.com/nmx/ranking/road-infrastructure-spending

6. 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/
PRESENTATION TITLE 2/11/20XX 6

7. IMF / INFRASTRUCTURE
PRESENTATION TITLE 2/11/20XX 7
Source - https://www.imf.org/external/np/g20/111920.htm

8. 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/
PRESENTATION TITLE 2/11/20XX 8

9. HISTORICAL USA INFRASTRUCTURE
SPENDING
Source - https://www.spglobal.com/en/research-insights/featured/infrastructure-
productivity-boost-coronavirus
PRESENTATION TITLE 2/11/20XX 9

10. 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

11. INFRASTRUCTURE GAP / UNITED STATES
Source - https://www.mckinsey.com/business-functions/operations/our-insights/reimagining-infrastructure-in-the-united-states-how-to-build-
better#
PRESENTATION TITLE 2/11/20XX 11

12. BUILDING PERMITS/ UNITED STATES
Source - https://www.mckinsey.com/business-functions/operations/our-insights/reimagining-infrastructure-in-the-united-states-how-to-build-
better#
PRESENTATION TITLE 2/11/20XX 12

13. STATE AND LOCAL GOVERNMENT
INFRASTRUCTURE
Source - https://www.pgpf.org/blog/2020/06/state-and-local-infrastructure-spending-a-closer-look
PRESENTATION TITLE 2/11/20XX 13

14. 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
PRESENTATION TITLE 2/11/20XX 14

15. SUPPLY CHAIN
PRESENTATION TITLE 2/11/20XX 15
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

16. USA PORT EXPANSION / SUPPLY CHAIN
INVESTMENTS
PRESENTATION TITLE 2/11/20XX 16
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

17. 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
PRESENTATION TITLE 2/11/20XX 17
Source - https://supplychaingamechanger.com/top-10-
global-supply-chain-risks/

18. MONITORING OF INFRASTRUCTURE
ASSETS
PRESENTATION TITLE 2/11/20XX 18
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/

19. BLOG – ENERGY
CRISIS
PRESENTATION TITLE 2/11/20XX 19
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/

20. SUMMARY
• Higher material costs continue plague the construction sector
• Cities want more focus on fixing existing infrastructure including roads and bridges
• Addressing issues with water, land, and forest management as part of future urban and rural planning
• Risk and Crisis mitigation plans for wildfires, floods, and other climate events
• Optimization of public transit systems
• Addressing issues with ports, intermodal, warehousing, and other areas as part of addressing issues with the
supply chain
• Streamlining regulations related to development of Oil, LNG, Critical Metals, metals, lumber, cement, and other
products related to the construction sector.
PRESENTATION TITLE 2/11/20XX 20
Blog – Construction Spending and Capital Spending Outlook – The United States and the World – August
2022
Summary:
A report released by the Commerce Department on Monday showed construction spending in the
U.S. decreased by more than expected in the month of August.
The Commerce Department said construction spending fell by 0.7 percent to an annual rate of
$1.781 trillion in August after sliding by 0.6 percent to a revised rate of $1.794 trillion in July.
Economists had expected construction spending to dip by 0.3 percent compared to the 0.4
percent drop originally reported for the previous month.
The bigger than expected decrease in total construction spending came as spending on private
construction decline by 0.6 percent to an annual rate of $1.426 trillion.
Source - https://www.nasdaq.com/articles/u.s.-construction-spending-decreases-more-than-expected-
in-august
10 Best Renewable
Energy Stocks to Watch in 2022.pdf
Plans for Federal
Infrastructure Money Will Make Climate Change Worse, Says Report.pdf
20220410_Constructi
on Spending_USA_August 2022_Census.pdf
U.S. construction
spending posts biggest drop in 1-1_2 years in August Reuters.pdf
U.S. Construction
Spending Decreases More Than Expected In August Nasdaq.pdf
Bringing the thunder
with Biden’s latest decree Infrastructure Investor.pdf
Global 'expert'
investors embrace sustainable options for returns Wealth Professional.pdf
Building cost inflation
caused by supply constraints YIP.pdf
The first 2-story
3D-printed concrete home in the US is taking shape in Houston — take a look at how the 4,000-square-foot house is being built.pdf
Technical skills gap
could have major impact in 2023, economist tells MCAC - constructconnect.com.pdf
Skills gap survey.pdf Stock Market
Outlook Pressure Will Persist for up to Next 12 Months.pdf
bii-global-outlook-in-
charts.pdf
Natural Gas Is Top
Pick at Bank of China During Commodities Rout.pdf
Supply chain
disruption Tagged Articles - FreightWaves.pdf
$25.6 Million in New
Federal Home Energy Investments for Four Alberta Communities.pdf
1. Construction spending dropped - https://www.reuters.com/markets/us/us-construction-
spending-posts-biggest-drop-1-12-years-august-2022-10-03/
2. Infrastructure - https://www.infrastructureinvestor.com/bringing-the-thunder-with-bidens-
latest-decree/
3. Sustainable - https://www.wealthprofessional.ca/news/industry-news/global-expert-investors-
embrace-sustainable-options-for-returns/370327
4. Construction costs - https://www.yourinvestmentpropertymag.com.au/news/supply-
constraints-trigger-surge-in-building-costs
5. Construction / 3D https://ca.news.yahoo.com/first-2-story-3d-printed-120100083.html
6. Skills gap https://canada.constructconnect.com/dcn/news/labour/2022/10/technical-skills-gap-
could-have-major-impact-in-2023-economist-tells-mcac
7. Commodities - https://ca.finance.yahoo.com/news/natural-gas-top-pick-bank-230000215.html
8. Supply chain - https://www.freightwaves.com/news/tag/supply-chain-disruption
9. Clean Technology - https://www.newswire.ca/news-releases/-25-6-million-in-new-federal-
home-energy-investments-for-four-alberta-communities-840266982.html

21. 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