A mere one-month average delay in the transport infrastructure pipeline sees the UK economy miss out on around £2bn of investment-related GDP over five years, equivalent to £48,425 per minute of delay.
The Arcadis Spiralling Cost of Indecision report compares the 2015 and 2016 National Infrastructure Pipeline datasets and calculates estimated costs – such as missed GDP from investment and additional project cost – associated with delays and cancellations. Over the next five years the cumulative impact of stalling on projects identified in the pipelines could see the UK economy miss out on as much as £35 billion of investment-related GDP.
The report also estimates that, as a result of a one month delay, the costs involved in delivering transport projects would rise by £241 million over five years – equivalent to around £8 million for every single day of delay.
Using infrastructure to drive the UK economy
Following the global crash in 2008, the government invested heavily in infrastructure, and it was this that contributed to the UK weathering the storm and remaining relatively strong through years of uncertainty. Now as we enter uncertain times once again as a result of leaving the EU, our nation needs the same commitment once again.
Clearly, there are a multitude of reasons for projects being held, many of which are unavoidable. However, minimising unnecessary delays and making strong, positive and timely decisions both as an industry and as a government would better reinforce investor confidence in UK infrastructure and boost the nation’s economy.
To find out more please get in touch or read the full report.
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