There are always opportunities to invest in 'the next big thing' if you identify it early enough.
Australia is a young country with a rapidly growing population. Not only that, it's one of the most urbanised countries too.
Most of the Australian population lives in one of our capital cities, so it's very important that all the necessary infrastructure and amenities are constructed.
Cimic Group Ltd (ASX: CIM) included a good image in its half-year presentation of how much is going to be spent on some of the large infrastructure projects over the next five years:
These are huge sums of money, some Australian companies could be large winners.
In the half-year 2017 results Cimic reported that revenue grew by 27.8%, net profit after tax grew by 21.8% and earnings per share grew by 24.8% compared to the corresponding period.
It's quite obvious that the construction companies like Cimic and Lendlease Group (ASX: LLC) will benefit a lot from the infrastructure boom.
Businesses that help with the design of large projects like Aconex Ltd (ASX: ACX) could also be in line for earnings growth.
Businesses that provide the materials for the construction projects could also be winners. Brickworks Limited (ASX: BKW), Reece Ltd (ASX: REH), CSR Limited (ASX: CSR), Adelaide Brighton Ltd (ASX: ABC) are just a few of the names that could benefit from the building extravaganza.
Foolish takeaway
It's amazing to see how much is being spent on infrastructure over the next decade. This money is almost guaranteed to be spent regardless of economic conditions.
