I have been thinking a lot about trends lately. Trends and infrastructure. I think we all tend to think about trends...the latest trends in music, clothes, television programming (i.e., reality shows, emergency room drama), home prices, etc. Regarding home prices...you hear and read everyone's speculation about what prices are going to do...with respect to interest rates, with respect to supply and demand...how some areas of the country are flat-lining while others are still experiencing growth. On the other side of the coin, we have infrastructure. It seems that if you have a solid infrastructure, you are poised to rule the world...no matter what industry. Consider Microsoft and Windows. Consider the freeway system of a city whose population is growing like crazy...I don't know how many times I think to myself, "I wish they would have just built an 8 lane freeway to begin with as opposed to starting with a 4 lane." Granted, there are numerous reasons for the current infrastructure (budgetary, etc) but to the extent you have a good infrastructure to push your products...you are that much more ahead of the competition.
So, these thoughts have been occupying my mind's space. Now join the two...trends and infrastructure...now add a side of real estate and a sprinkle of green technology...where does that leave us? That leaves us with a huge bowl of opportunity soup! In all seriousness, we are at the front-end of some tremendous growth. I know the "green" industry is growing and gaining a lot of speed, but there is still a lot of work to not only educate the masses but also to bring existing infrastructure (built-to-code structures) up to sustainable standards in the US alone. Infrastructure includes everything from roads and bridges to energy supply and mass transportation systems. Improving our infrastructure will ultimately reverberate to homebuilders and other developers...creating opportunities for growth.
Do we have the capacity to accept more growth if we improve our infrastructure? Maybe. But first, let me first introduce private funds (billions of dollars parked in the private sector like pension funds, hedge funds, equity funds, banks, etc) to diversification. Diversification will show private funds the world of opportunity that is infrastructure. Anyway...I think there is a ton of opportunity over the next 10-20 years building up a sustainable "green" infrastructure.
California is getting there. Voters have approved an almost $40 billion infrastructure bond that would spurn various infrastructure development in the start. What do you think? Do you think growth in the infrastructure market is important? Do you have any ideas on how to finance the rebuilding of the infrastructure market? Let's hear it!