It is no secret the United States of America has been struggling with outdated infrastructure. This failure to upgrade critical infrastructure throughout the country has weighed heavy on the manufacturing industry and nearly every other industry that relies on dependable roads, bridges and transit systems. The current administration has touted a revised infrastructure plan but very little details have emerged. However, now Saudi Arabia could lend a helping hand as they get ready to invest $40 billion into U.S. infrastructure according to Bloomberg.
The recent announcement coincides with Presidents Trump’s visit to the kingdom next week. This decision to invest is not set in stone as of yet and Saudi Arabia is expected to make a final announcement next week. Saudi Arabia did express that the decision to invest could be put on hold, but interest is high.
“The infrastructure program of President Trump and his administration is something that we’re interested in because it broadens our portfolio and it opens a new channel for secure, low-risk yet healthy return investments that we seek,” Saudi Energy Minister, Khalid Al-Falih told CNBC in March. http://cnb.cx/2qa9ETy
Back in March, President Trump began work on a new U.S. – Saudi program in energy, industry, infrastructure and technology. The program is estimated to be valued at more than $200 billion in both direct and indirect investments within the next four years, according to the White House. The goal is to push the administration’s $1 trillion investment into U.S. infrastructure over the next decade. $200 billion will be coming from taxpayers and the rest coming from the private sector.
These latest developments coming from Saudi Arabia could have a profound impact on the wellbeing of U.S. infrastructure and relations between the two nations. Not only would it help jumpstart the modernization of the U.S.’s dilapidated infrastructure, it may even open up the possibility of more collaborative private investments in the future.
The manufacturing industry depends on reliable infrastructure to help get their products in the hands of their customers. Outdated infrastructure is leading to a sluggish supply chain, weighing heavy on industry and the U.S. economy. Turning away from a reactionary infrastructure plan and embracing an upgrade mindset can bring U.S. infrastructure into the 21st century which could encourage more businesses to expand as they could rely on their supply chain to handle the increased demand.
Only time will tell what will happen with Saudi Arabia’s infrastructure investment as the final decision is still yet to be made. Be sure to check back with Manufacturing Talk Radio after President Trump’s visit to the country to see how it all turns out.