Aging Pipes and Drought Fuel Growth in Water/Wastewater Market
Drought, population growth and aging water infrastructure are driving states and municipalities to either begin or build upon ambitious capital campaigns to improve their wastewater and drinking water supply systems, and the outlook for continued growth in the water market looks strong.
McGraw-Hill Analytics reports that in 2006 contracting for sewers, wastewater and hazardous waste projects grew 9%, to $14.5 billion, and the outlook for 2007 and 2008 looks bright. Much of the work in sewer lines stems from more stringent federal and state standards for combined sewer overflows (CSO). A number of municipalities have signed consent decrees with the U.S. Environmental Protection Agency to make improvements to sewer systems to reduce overflows during heavy rain.