Build It And They Will Come; Why Infrastructure Should Come First

“Build it and they will come” is a phrase often bandied around as a reason to invest in a particular project, generally one with the aim to draw in tourists, businesses or investors.

The writer believes that  creating a short term incentive is not enough, as the glamour quickly wears off if the project doesn’t have a local grounding. The key is to look at who “they” are before starting a project, and ask if they actually want what your “it” is.

While every area of business has different metrics to measure their growth, companies with a blinkered focus on their top KPIs will neglect elements key to their long term success. Sustainable infrastructure, whether it be IT, logistics or architecture, are critical in making sure that your business stays with the times and is best prepared when disruptions occur. Here we will look at some projects that either nailed or struggled with the “build it” balance.

The ‘Tech’ Isle of Wight

This is why the Isle of Wight, when looking to update it’s traditionally isolated rural perception, set out to make 20,000 residential and business premises on the island connected to superfast broadband. The rollout was carried out by BT, and was collaboratively funded by the local council, BT itself and the government's Broadband Delivery UK fund. Working in conjunction with commercial rollouts, 99% of the island now has access to fibre optic broadband, making it one of the best places in the UK for high-speed coverage.

This broadband infrastructure project has paved the way for the council’s Digital Island Strategy. Thanks to its support of digital transformation, the Isle of Wight has been dubbed “Tech Island”, now home to leading specialised global tech firms. This includes Film Wight, which highlights filming locations for production companies to shoot content. These production companies have access to super fast broadband enabling things that were once too costly such as live broadcasting to now be streamed. Although it took time and an initial investment, the project created significant economic growth and a long term positive legacy.

A newly built wildlife bridge on the course of the northern extension of the Autobahn 14, one of ... [+] DPA/PICTURE ALLIANCE VIA GETTY IMAGES

Looking to Europe

Over the last few decades, Germany has been building its reputation as a leading European business hub. As the fourth largest economy in the world after the USA, China, and Japan, they got their edge through prioritising large scale infrastructure projects to support their focus on exports. Their transport logistics are globally renowned, including the speed limitless Autobahn, the semi-state-owned Deutsche Bahn's rail network and the Lufthansa airline. Not only does the government prioritise the delivery of this high quality infrastructure, it supports businesses following best procurement practices.

While transport logistics might sound simple, the connectivity makes Germany an extremely attractive location for European businesses and their workers. It’s no small wonder that the difference in their total infrastructure investment compared to the developed country average over the last five years ($214,137 to $138,796) is mirrored in their significantly higher than average GDP. This infrastructure has allowed them to become a world leader in a number of fields, including pharmaceuticals. While this massively supports their economy, their contributions to the COVID-19 vaccine in partnership with Pfizer also places them as a crucial element for us to escape the pandemic.

Building it right

While discussing the huge benefits of investing in infrastructure projects, it is important to acknowledge that they can go wrong. Simply throwing money at a problem without forward planning is a direct line to failure. Even if it gets the immediate job done, the long term effect on the local area can be detrimental if the infrastructure quickly becomes outdated and is difficult to upgrade or remove.

Just six months after the 2016 Rio de Janeiro Olympics, many of the Olympic venues had been looted, vandalised or simply unused since the games. The £16m golf course, which had promised to act as a huge tourism trickle down effect for local businesses, had failed to attract enough players to pay for it’s maintenance and now lies abandoned. While the project was an overall success at the time of the games, it drained the necessary funds that were required to create a legacy for the site.

The Crossrail railway project began construction in 2009, but after several delays it is now ... [+] SOPA IMAGES/LIGHTROCKET VIA GETTY IMAGES

The cost of delays

A recent and ongoing example of a costly infrastructure project is the Crossrail line. Originally due to open in December 2018, the new modern railway line across London primarily connecting Reading and Heathrow, has faced repeated delays, with the central section of the line now not opening until 2022. Thanks to the delays, the original estimated costs have also been surpassed, exceeding the upper end of the revised 2019 budget by £450 million.

While a huge amount of planning went into this project, including for the areas that would get a boost from the new connection, uncertainty now surrounds this project. This leaves both affected businesses and residents on shaky ground at a time they are looking to rebuild after the worst of the pandemic. The project, which supposedly would bring an estimated £42bn to the UK economy, is now seen as a prime example of the associated risks of large infrastructure projects, and the serious impacts of delays.

Also read: What is the role of technology and private investment in closing infrastructure gaps?

These examples show that infrastructure projects can be hugely beneficial but need precise planning with plenty of flexibility to mitigate disruptions. In terms of contingency planning, it is best to hope for the best, plan for the worst. For the long term success of a project, ensure that you are building it for the right reasons and for the right audience, and the positive knock-on effects will be endless.

Across all industries, and especially now in a world where many of us are forced to work from home, IT infrastructure has become increasingly important. It is difficult to think of any job that doesn't somehow use the internet on a daily basis. As soon as you look into bandwidth-demanding digital industries, broadband speed, which is often viewed as a luxury, actually becomes a limiting factor.

This article was written for Forbes by Grant Powell CEO of The Arterial Group.

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