Infrastructure productivity: How to save $1 trillion a year

McKinsey & Company

Based on McKinsey & Company’s work with governments and private-sector infrastructure players around the world, an extensive literature review and drawing on insights from more than 400 case examples, this report by the McKinsey Global Institute (MGI)  advocates that if infrastructure owners around the world were to adopt proven best practice, they could increase the productivity of infrastructure investment and achieve savings of 40%.

Scaling up best practice could save an average of $1 trillion a year in infrastructure costs over the next 18 years. A productivity boost of this magnitude is achievable in many countries if they are willing to invest in a systematic approach to infrastructure that drives improvement across agencies and private-sector owners and contractors.

This report looks at the high-level challenges in infrastructure delivery and how these can potentially be addressed. Action topics include eliminating waste, improving the selection of projects and streamlining their delivery. It also includes best-practice examples from around the world, which would make a major difference if scaled up globally.

The report identifies three strategies that could help deliver savings:

  • Optimise project portfolios.
  • Streamline delivery.
  • Make the most of existing infrastructure.

Read the report

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