Infrastructure & Cities

The impact of ageing infrastructure in process manufacturing industries

December 19, 2013

Global

December 19, 2013

Global
Our Editors

The Economist Intelligence Unit

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Oil and gas, utilities, chemicals and natural resource companies face an ageing infrastructure crisis. Over 350 executives tell us about their concerns and strategies in “The impact of ageing infrastructure in process manufacturing industries”, sponsored by Oracle.

Report Summary

Process manufacturing companies in the oil and gas, utilities, chemicals and natural resource industries rely on proprietary infrastructure to run their operations. Much of this infrastructure is rapidly ageing, thus increasing the risk of failure. Subsequent disruptions hamstring operations and impede opportunities for growth, with the impact of these interruptions felt worldwide. As a result, executives in these industries must make tough decisions about where, when and how much to invest in infrastructure upgrades.

To control the rising costs and risks related to their infrastructure, many executives advocate a proactive approach to infrastructure upgrades and investment in innovative technologies as the best way forward. Such approaches, they say, will help them get ahead of breakdowns, improve safety and manage their resources more effectively.

This paper, based on a survey of more than 350 global executives in the oil and gas, utilities, chemicals and natural resource industries, explores how ageing infrastructure has affected operations in those sectors and the strategies executives are employing to overcome problems.

The research examines:

  • The business implications of infrastructure failures
  • Key factors executives consider when weighing infrastructure-upgrade decisions
  • ​Tools and strategies companies plan to use to rein in costs

"If we can detect a problem early on, it costs us ten times less to fix it than if we wait until it fails."

-Ronald Lee, Global leader, asset care and responsibility, DuPont

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