Water and wastewater markets have grown nicely over the past decade but funding issues may create a clog in the works in coming years. Declining revenue at state and local levels as well as the tight credit market are almost certain to curtail gains built up over the past 10 years, say industry analysts.
Between 1997 and 2007, water and wastewater agencies around the country faced capacity issues, overdue capital upgrades and federal mandates for improvements, and spending nearly doubled, according to McGraw-Hill Construction Analytics, like ENR, a unit of the McGraw-Hill Cos. However, construction starts in the environmental public works sector will end up flat for 2008 at $36.8 billion, with a 5% drop to $35.2 billion forecasted for 2009, according to the group.