Content area
Full Text
Post-conflict reconstruction to remain a booming business
Post-war reconstruction will continue to create lucrative business opportunities for contractors for years to come, concludes a study by the Industrial College of the Armed Forces.
Firms that provide "reconstruction and vital infrastructure" services include primarily engineering and construction companies that compete for aid-sponsored reconstruction contracts such as rebuilding roads, reconnecting power and water supplies, and managing projects.
The industry is "robust and prosperous with intense competition among service providers," said the study, which was written by a group of military officers and goveminent civilian officials. Since the end of the Cold War, the United States has on average engaged in post-conflict rebuilding operations every 18 months, they point out. The demands on the nation to "respond to the needs of failing states, countries emerging from conflict, or regions recovering from natural disasters are likely to continue," the study said.
In 2004, 151 companies doing reconstruction work in Iraq and Afghanistan received contracts during a two-year period that generated combined revenue of almost $52 billion. This marked a six-fold increase over the...