Contractors urged to target USA

The USA could prove to be the happiest hunting ground for contractors looking to work abroad according to a new survey from accountants BDO.

The firm's analysis of the G20 nations shows the USA will provide the biggest opportunity for inbound construction projects in the future.

The USA comes out on top of BDO Stoy Hayward’s G20 Heatmap because of the potential for upcoming construction projects.  One such project is the recently announced economic stimulus package which proposes spending of around US$150 billion on infrastructure over the next three years - making it the biggest investment since President Eisenhower developed the US highway system in the 1950s.

Richard Kelly, Head of Construction, at BDO Stoy Hayward said: "As a rule, the construction sector is an industry that has been limited by national boundaries, with companies often ignoring the significant opportunities that exist beyond their own shores.

"While the effort required to break into the USA, and other international markets, may appear to be daunting, even taking just a tiny nibble of this enormous cake could be enough to satisfy the greediest of construction business appetites."

Following close behind the USA to take spots number two and three were the UK and Canada respectively, suggesting that the greatest opportunities are not always in those territories touted as being the next big thing.

Kelly said: "The idea that the UK and Canada could offer more potential than China, Saudi Arabia or even India is startling. It clearly demonstrates the importance of carrying out a rigorous analysis of opportunities and balancing them with the barriers to entry.

"Clearly there are opportunities to be had in the East and Middle East, but the combined clout of the top three countries makes it impossible to ignore the potential lying west of mainland Europe."

The BDO Stoy Hayward’s G20 Heatmap considered a number of factors which make a country attractive for inbound construction:

The upcoming construction projects the country has planned

Whether a country has the means to fund the construction projects it has earmarked

The focus on taxation – including low rates of corporation tax, the flexibility of using shareholder debt, the presence and ease of obtaining tax relief, the time taken to prepare tax returns and the overall number of tax payments

Strong credit ratings

The ease of doing business

Low corruption levels

Few regulatory barriers.

BDO Stoy Hayward’s G20 Heatmap rankings

USA
UK
Canada
China
Japan
Saudi Arabia
Australia
India
South Africa
South Korea
France
Turkey
German
Indonesia
Italy
Russia
Brazil
Mexico
Argentina