Ahead of 2023 State of the Union, KPMG Leaders Comment on U.S. Infrastructure
Ahead of the State of the Union address, KPMG leaders provide their thoughts on the state of U.S. infrastructure, which is likely to be a topic of discussion following the passage in the past year of several pieces of legislation such as the Infrastructure Investment and Jobs Act (IIJA), Inflation Reduction Act (IRA), and the Creating Helpful Incentives to Produce Semiconductors for America (CHIPS and Science Act, or “CHIPS”).
Leaders from KPMG U.S. weigh in with their insights below.
Electric Vehicles
The shift to renewables and EVs is estimated to require $4.5T to convert the US electricity grid. While federal investment will help jumpstart projects, private capital will be critical given the size of the challenge. Today’s market turbulence could make infrastructure a more attractive asset class for investors.
Dr. Christian Roberts
Principal, Infrastructure Capital Projects and Climate Advisory, KPMG
The massive capital requirement to power the energy transformation elevates the importance of addressing the US labor outlook that could be a bottleneck to converting investment into action.
Angie Gildea
KPMG National Energy Sector Leader
Even as more realistic industry expectations, and investment in charging networks, pave the road for EV adoption, the drive for battery components still needs to catch up.
Gary Silberg
KPMG Automotive Industry Leader
Equitable Communities
Year one saw investment in smaller, shovel-ready projects, delivering immediate impact. Now is the time for recipients to consider how they transition to shovel-worthy projects - pivoting to next-generation projects that will have an even bigger impact on transforming US infrastructure.
Dr. Christian Roberts
Principal, Infrastructure Capital Projects and Climate Advisory, KPMG
A reliable and sustainable infrastructure is the lifeblood of the manufacturing industry, and thoughtful investments can help ensure the longevity of a productive manufacturing sector.
Claudia Saran
KPMG Industrial Manufacturing Sector Leader
With half a billion dollars allocated over the next five years in IIJA to support the adoption of digital technologies, closing the digital divide will remain at the forefront of the agenda for many tech sector leaders in conjunction with state and local governments.
Mark Gibson
KPMG Technology Sector Leader
Going forward, we expect states and cities to pursue larger projects that align with priorities for their communities: projects that will help reduce emissions, improve climate resilience and create more equal access to critical services like housing, healthcare, and education.
Dr. Christian Roberts
Principal, Infrastructure Capital Projects and Climate Advisory, KPMG
Risk Considerations
With an unprecedented level of projects and supply chain risks still heightened, we expect to see contractors be quite selective about the projects they bid on and the level of risk they’re willing to take on. The ball is in their court.
Andrew Garbutt
Principal, Infrastructure Projects Development and Finance, KPMG
Insurance has always been about enabling innovative people to take reasonable risks, and that’s the role it will play now, with businesses that drive our infrastructure and energy transformation and contractors that make it happen.
Ed Chanda
KPMG Insurance Sector Leader
