Some good economic news—global capital project spending has returned to pre-recession levels, according to a recent A.T. Kearney study.
The firm's "ExCap II: Top-Level Thinking on Capital Projects," reports that capital spending has recovered since the 2008-2009 recession to $11 trillion to $12 trillion annually. However, that doesn't mean we're out of the woods just yet—significant challenges remain for managers.
Many of the pre-recession capital project issues are back, such as resource scarcity, cost management, and underleveraged project portfolios. The study found that 23 percent of capital projects do not meet the required financial return threshold.
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