Changing our approach to realize the full value of our assets

Whether it is the transportation we use, the buildings we work in, the water facilities treating our water, or the grids delivering power to us, assets are central to our lives and therefore must be carefully managed and maintained. Yet in a world of rapid urbanization, climate change, and water scarcity, we find ourselves managing these precious assets with less resources.

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“Over $55 trillion of infrastructure investment is needed globally over the next 15 years and while effective asset management is crucial, we find many organizations are still getting it wrong.”

Current estimates indicate that over $55 trillion of infrastructure investment is needed globally over the next 15 years in order to maintain projected growth. Yet while we all know effective asset management is crucial to ensuring long-term performance, a recent global Arcadis survey found that many organizations are still getting it wrong. 

The survey found that more often than not, asset management approaches are both outdated and executed poorly, resulting in underperformance and considerable losses.  Alarmingly, the survey also found that 80% of asset owners indicated they did not have a complete understanding of the assets they possessed, nor were they aware of their condition, their required maintenance or budget. 

So where are we going wrong? Firstly, we need a greater understanding of the major global trends impacting our assets, from aging infrastructure, higher customer expectations, increasing safety and regulatory requirements, scarce capital reserves, through to climate change.  These global trends have propelled us into an asset management revolution.  Asset management can no longer simply be a technical discipline, driven by a need to better forecast capital investment, nor can it be a stand-alone budgeting exercise or an isolated maintenance procedure.

Instead, we must optimize our asset performance by breaking through organizational silos and adopting a business-driven mindset that links together a focus on the full asset life-cycle, enabling decisions to be based on impacts across all stages of asset creation and operation. 

‘On the road to an Asset Management revolution’ is the first in a series of Arcadis reports assessing the changing role of asset management and how the implementation of ‘whole of business’ programs can ensure the value of assets are realized and unlocked.

Gareth Robbins

Sector Managing Director - Property, Energy and Resources Ask me a question
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