Latest news with #NationalInfrastructurePipeline
Techday NZ
2 days ago
- Business
- Techday NZ
NZ civil construction sector faces confidence drop, workforce shortage
New research from Civil Contractors New Zealand and Teletrac Navman shows that New Zealand's civil construction industry is contending with a drop in business confidence and shrinking workforce numbers, but many businesses remain focused on finding solutions. The 2025 Construction Industry Survey, now in its ninth edition, compiles feedback from sector professionals and reveals a mixed picture. Of those surveyed, 16 percent reported a positive business outlook - a significant decrease from 50 percent in 2021. Alongside this decline, 42 percent of businesses reported downsizing or laying off staff over the past 12 months, with 73 percent citing a lack of work as the industry's predominant challenge, compared to just 15 percent in 2021. Despite the difficult operating environment, almost half (47 percent) of civil construction businesses expressed confidence in their ability to withstand and overcome current challenges. Many are responding by investing in new technology and climate-resilient projects with the aim of supporting business growth and meeting community needs. Government pipeline concerns Industry leaders point to uncertainty surrounding the project pipeline as a critical factor in declining business confidence. Alan Pollard, Chief Executive at Civil Contractors New Zealand, said: "New Zealand's civil construction industry is facing a confidence crisis where a lack of work, and uncertainty is placing the long-term health of the industry at risk, but there is plenty of hope on the horizon." The National Infrastructure Pipeline, managed by the New Zealand Infrastructure Commission, currently forecasts projects worth USD $207 billion across central government, local government and private sector contributions. Despite this, Pollard says there is often a gap between forecasted investments and projects reaching the market, with many projects delayed for prolonged periods. He emphasised the need for more transparent communications regarding project opportunities and more stable investment to provide certainty for infrastructure construction workers. The impact is particularly pronounced for small and medium-sized enterprises (SMEs), which make up 60 percent of the sector. The survey found that 27 percent of SMEs expect their revenues to decrease in 2025, which is three times the number from the 2021 survey. Pollard continued: "It's never been more important for central and local government to step up with a clearer, more consistent and visible pipeline of infrastructure construction and maintenance work, rather than just announcements. We see this playing a central role in strengthening business confidence, helping to keep skilled workers in the industry, and ensuring we're ready to meet not just today's needs, but also New Zealand's future infrastructure needs." Skills and workforce challenges The survey highlights that human resources and skills are a significant issue. Seventy-three percent of respondents reported a lack of available work for contractors, up from only 15 percent in 2021. This environment increases the risk of skilled professionals seeking employment overseas or leaving the sector to maintain income security. Looking ahead, 85 percent of civil construction professionals believe that clarity around central and local government projects is needed to restore business confidence and financial stability in the sector. Climate change and infrastructure Resilience to climate change is another matter raised by respondents. Fifty-eight percent are not confident in New Zealand infrastructure's current ability to withstand climate change. Civil construction professionals are unified in calling for greater investment in resilience infrastructure, such as seawalls and stopbanks, seeing these developments as essential for community safety during flood or fire events. Role of technology Technology is increasingly being recognised as a strategy for business efficiency and growth in New Zealand's civil construction sector. More than 40 percent of those surveyed indicated that adopting technology could help improve efficiency and manage ongoing challenges. Over half of business leaders say that mandated technology assists them in securing new work, indicating a shift in how projects are approached. James French, Construction Industry Specialist ANZ at Teletrac Navman, said: "While confidence in the sector is under pressure, our research with CCNZ clearly shows that businesses that embrace digital tools and connected platforms are positioning themselves to win work and navigate today's industry uncertainty. Technology isn't just a nice-to-have for civil construction businesses – It's become a business imperative. This year's Civil Construction Industry Report revealed that 60 percent of business leaders in the sector say that mandated technology helps them win work, so its clear technology is playing a key role in building a more resilient and competitive civil construction industry." The annual report by Teletrac Navman and Civil Contractors New Zealand aims to provide data-driven insights to support the sector as it navigates changing market conditions and prepares for future demands. The 2025 survey was based on 172 responses from civil construction professionals gathered between May and June 2025.
News18
7 days ago
- Business
- News18
India On Track To Become Third-Largest Economy By 2028: Morgan Stanley
India is expected to more than double its GDP to $10.6 trillion by 2035, and three-five states might approach the $1 trillion GDP mark, says Morgan Stanley. India is on track to become the world's third-largest economy by 2028 and more than double its GDP to $10.6 trillion by 2035, according to the latest report by Morgan Stanley released on Wednesday. The report also highlighted the pivotal role that Indian states will play in steering this economic transformation. It said that by 2035, three to five Indian states — including Maharashtra, Tamil Nadu, Gujarat, Uttar Pradesh, and Karnataka — are projected to approach the $1 trillion GDP mark, putting them among the world's top 20 economies in their own right. 'Based on the latest data, the top three states are Maharashtra, Gujarat, and Telangana," the report noted. It further highlighted Chhattisgarh, Uttar Pradesh, and Madhya Pradesh as the states that have shown the most significant improvement in economic rankings over the past five years. Over the next decade, India is expected to contribute 20% to global growth, becoming a major engine for earnings among multinational corporations, the report said. Morgan Stanley economists emphasized the importance of India's 28 states and eight Union Territories in achieving this ambitious growth. 'States not only manage their own finances but also compete for investments by designing policies and easing business conditions. Ultimately, every factory or business is set up in a specific state," the report stated. The report credited the progress to 'competitive federalism," where states operate with significant legislative and political autonomy, enabling them to frame their own industrial policies and compete for investments. The success of this model, it added, will determine India's rise as a global manufacturing hub, its ability to double per capita income within seven years, and whether it can sustain its capital market momentum. Over the last decade, India has significantly increased infrastructure investment. The Centre's capital expenditure has risen from 1.6% of GDP in FY15 to 3.2% in FY25, spurring major improvements in transportation and logistics. Highway networks have expanded by 60%, the number of airports has doubled, and metro systems have grown fourfold. These developments have been driven by major central schemes such as PM Gati Shakti, the National Infrastructure Pipeline, Bharatmala, Sagarmala, and UDAN, which have been executed alongside state-led initiatives. States also lead infrastructure spending in areas like power, water, and urban development. 'The Centre and states must continue to collaborate closely to meet India's economic ambitions," the report concluded. India has already surpassed Japan to become the world's fourth-largest economy according to IMF data, NITI Aayog CEO BVR Subrahmanyam announced in May 2025. According to the IMF, India's GDP is currently $4.187 trillion, overtaking Japan's $4.186 trillion. Meanwhile, a recent report by JP Morgan said India has emerged as a relatively safe haven among emerging markets (EMs) amid global trade uncertainties. The report highlighted that India is benefiting from a combination of falling inflation, improved system liquidity, and lower government borrowing, which are expected to support economic growth. The report adds that India is expected to post the highest GDP growth among countries in JP Morgan's global universe in 2025. Growth is also being supported by timely demand stimulus and measures that have strengthened urban household balance sheets. In addition, a recovery in the rural economy, further aided by a favourable monsoon, is adding to the positive outlook. It stated, 'India: Falling inflation, enhanced system liquidity and lower borrowing to boost growth. Timely demand stimulus and support to urban household balance sheet". JP Morgan's emerging markets strategists are constructive on several emerging market countries, including India, Korea, Brazil, Philippines, UAE, Greece, and Poland. Among these, India holds a 19 per cent weight in the MSCI EM Index and has been rated 'Overweight" (OW) by JP Morgan. tags : indian economy view comments Location : New Delhi, India, India First Published: July 23, 2025, 17:55 IST News business » economy India On Track To Become Third-Largest Economy By 2028: Morgan Stanley Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
Hans India
23-07-2025
- Business
- Hans India
India to be 3rd-largest economy by 2028, to reach $10.6 trillion by 2035: Morgan Stanley
A Morgan Stanley report on Wednesday said it expects India's economy to be the third-largest globally by 2028 and more than double in size to $10.6 trillion by 2035. Embedded in this forecast is the likelihood that three to five states (Maharashtra, Tamil Nadu, Gujarat, Uttar Pradesh and Karnataka) will have an economy of nearly $1 trillion each, ranking in the top 20 global economies between 2030 and 2035, the report projected. "Based on the latest data, the top three states are Maharashtra, Gujarat and Telangana. The states showing significant improvement in ranks over the past five years are Chhattisgarh, Uttar Pradesh and Madhya Pradesh,' the report noted. India will drive a fifth of global growth in the coming decade and become essential to earnings growth for many multinational companies. 'To secure this outcome, among other things, the role of India's 28 states and eight Union Territories is critical. States not only play a pivotal role in fiscal management but also compete for investments by creating suitable policies and incentives, easing business conditions (ultimately, a business or factory is set up in a particular state),' said economists from the global financial institution. They have independent political cycles with varying mandates that can affect growth positively or negatively and are empowered by law to control factors of production. 'The success of India's competitive federalism will help decide whether she becomes a factory to the world, doubling her per capita income in the coming seven years – and whether the stock market continues its strong performance,' the report emphasised. States are economically important as India becomes a $10.6 trillion economy by 2035, wielding considerable political and legislative power. Their policy frameworks are capable of influencing India's rise as a global manufacturing hub. In the past decade, there has been a concerted push for development of physical infrastructure – the Central government doubled its capex to 3.2 per cent of GDP in FY2025 from 1.6 per cent of GDP in FY2015. This has led to significant infrastructure growth across states. 'Highways rose 60 per cent, airports doubled, and metro network quadrupled. Infrastructure programmes spearheaded by the Central government -- such as PM Gati Shakti, the National Infrastructure Pipeline, Bharatmala, Sagar Mala, and UDAN -- have been promulgated alongside state-specific initiatives,' said the report. States collaborate with the Centre on these projects and play a crucial role in planning and implementation. Further, state governments are also responsible for investments in areas related to power, water, and urban development, it mentioned.
Mint
22-07-2025
- Business
- Mint
B L Kashyap & Sons secures ₹1,067 crore worth of orders in 2 days, equal to 65% of its market cap
B L Kashyap and Sons (BLK), a small-cap stock, has been making waves on Dalal Street with a series of order wins, boosting its order book and enhancing revenue visibility. On Monday, the company announced that it had secured an order worth ₹ 910 crore from BPTP Limited for the construction of civil structures for residential towers, including associated non-tower areas and a community building. This was the second major order after the company secured a ₹ 157.26 crore contract on Friday from Manyata Promoters Private Limited for civil and structural works at the Embassy Manyata Business Park project. Together, these two orders amount to ₹ 1,067.26 crore, equivalent to approximately 65% of the company's current market capitalization of ₹ 1,641 crore. Earlier in May, the company had also bagged an order worth ₹ 510 crore from Fidatocity Homes Private Limited for the construction of a residential group housing project with a built-up area of approximately 28.30 lakh square feet. Zooming out, it ended FY25 with a strong order book of ₹ 3,021 crore, representing 2.16 times its FY25 revenue. Haryana and Karnataka are the largest contributors to the company's order book. Segment-wise, commercial projects account for 70% of the total order book, followed by residential (17%), institutional (8%), and infrastructure (5%), according to its latest investor filing. Looking ahead, the company aims to continue bidding for railway projects by leveraging its experience from completed, ongoing, and upcoming metro and railway projects. It plans to strategically grow its presence in the railway sector, with the goal of increasing the government project share to 25% of the order book in FY26, according to the company's recent investor presentation. Currently, its private-to-government project ratio stands at 93:07. The company is targeting a more balanced ratio by capitalizing on infrastructure investments under the National Infrastructure Pipeline (NIP). As part of its future strategy, it said it plans to strategically monetize non-core assets to achieve financial freedom by FY2027. This will involve identifying and liquidating underutilized assets, optimizing its portfolio, and reallocating resources to high-growth areas. Through the unlocking of non-essential assets, the company aims to strengthen its financial position, reduce liabilities, and increase flexibility for reinvestment in core business initiatives. Meanwhile, the company also stated that it has significantly reduced its debt from ₹ 700 crore to ₹ 275 crore in FY25. It also informed us that there is currently no term loan outstanding, with only working capital and bank guarantee limits in place. CRISIL has upgraded the company's credit rating to CRISIL B+/Stable/A4.' The company's shares entered a significant correction phase after hitting an all-time high of ₹ 120.55 apiece in August last year, shedding nearly 40% of their value since then to trade at current level of ₹ 73. This sustained decline is largely due to profit-booking, following a sharp rally between June 2022 and August 2024, during which the stock surged 488% without any major pullbacks. Looking at the long term, the stock is still up 1,162% over the past five years. From its March 2020 low of ₹ 3.30 apiece, the stock has jumped an impressive 2,112% to date.
Mint
22-07-2025
- Business
- Mint
B L Kashyap & Sons secures ₹1,067 crore worth of orders in 2 days, equal to 65% of its market cap
B L Kashyap and Sons (BLK), a small-cap stock, has been making waves on Dalal Street with a series of order wins, boosting its order book and enhancing revenue visibility. On Monday, the company announced that it had secured an order worth ₹ 910 crore from BPTP Limited for the construction of civil structures for residential towers, including associated non-tower areas and a community building. This was the second major order after the company secured a ₹ 157.26 crore contract on Friday from Manyata Promoters Private Limited for civil and structural works at the Embassy Manyata Business Park project. Together, these two orders amount to ₹ 1,067.26 crore, equivalent to approximately 65% of the company's current market capitalization of ₹ 1,641 crore. Earlier in May, the company had also bagged an order worth ₹ 510 crore from Fidatocity Homes Private Limited for the construction of a residential group housing project with a built-up area of approximately 28.30 lakh square feet. Zooming out, it ended FY25 with a strong order book of ₹ 3,021 crore, representing 2.16 times its FY25 revenue. Haryana and Karnataka are the largest contributors to the company's order book. Segment-wise, commercial projects account for 70% of the total order book, followed by residential (17%), institutional (8%), and infrastructure (5%), according to its latest investor filing. Looking ahead, the company aims to continue bidding for railway projects by leveraging its experience from completed, ongoing, and upcoming metro and railway projects. It plans to strategically grow its presence in the railway sector, with the goal of increasing the government project share to 25% of the order book in FY26, according to the company's recent investor presentation. Currently, its private-to-government project ratio stands at 93:07. The company is targeting a more balanced ratio by capitalizing on infrastructure investments under the National Infrastructure Pipeline (NIP). As part of its future strategy, it said it plans to strategically monetize non-core assets to achieve financial freedom by FY2027. This will involve identifying and liquidating underutilized assets, optimizing its portfolio, and reallocating resources to high-growth areas. Through the unlocking of non-essential assets, the company aims to strengthen its financial position, reduce liabilities, and increase flexibility for reinvestment in core business initiatives. Meanwhile, the company also stated that it has significantly reduced its debt from ₹ 700 crore to ₹ 275 crore in FY25. It also informed us that there is currently no term loan outstanding, with only working capital and bank guarantee limits in place. CRISIL has upgraded the company's credit rating to CRISIL B+/Stable/A4.' The company's shares entered a significant correction phase after hitting an all-time high of ₹ 120.55 apiece in August last year, shedding nearly 40% of their value since then to trade at current level of ₹ 73. This sustained decline is largely due to profit-booking, following a sharp rally between June 2022 and August 2024, during which the stock surged 488% without any major pullbacks. Looking at the long term, the stock is still up 1,162% over the past five years. From its March 2020 low of ₹ 3.30 apiece, the stock has jumped an impressive 2,112% to date. Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.
