"This country has been spending disparate money on infrastructure upgrades, but never with a larger plan in mind," Dale Anne Reiss, Global Director of Real Estate, Ernst & Young in New York City, tells GlobeSt.com. "There is no strategic plan available right now, or even a concept for what that plan may be." If lawmakers knew what the end goal was, it would be possible to develop a funding route, she adds. "It could be a gas tax, more public-private partnerships, user fees, congestion financing – there are any number of different ways to go about this."

Called Infrastructure 2008: A Competitive Advantage, the report's findings are more downbeat than last year's, which predicted that infrastructure will emerge as a new asset class for institutional investors seeking stable growth that can keep up with inflation. The 2007 report stated, somewhat hopefully, that one potentially good source of funds for such investments would be the various permutations of public-private

Dunphy

Still, though, Dunphy adds, private sector funds are still interested in investing in this asset class. Some $400 billion in equity has been gathered by funds interested in this category. "It's a matter of channeling it to the right investments."

Relying on the status quo of one-off project financing will only hamstring future growth and compromise sustainability, the report makes clear. "2008 seemingly marks a critical juncture in a rapidly changing economic environment where new approaches to land use, infrastructure and energy efficiency will likely determine and possibly reorder the next generation of winners and losers–countries, companies, investors, and peoples," it said. If nothing is done, it warns, "America heads for a crisis in the next 10 years."