PHILADELPHIA — Growth in the municipal water infrastructure market will resume in 2010, and could increase by 5 to 10 percent over the current year, according to a firm that analyzes the market for investors.
After delays caused by contracting and reporting requirements in the stimulus package, “the flow of work is finally beginning in the water sector, and we expect federal and municipal contract activity to ramp up this fall and into the first half of 2010,” says an August 27 report to investors from the firm of Janney Montgomery Scott (JMS).
“We think 2010 may be a surprisingly strong rebound year for water infrastructure markets, with growth in the 5-10 percent range after a flat to down 2009,” the JMS analysts write.
About $15 billion in water-related spending was in the stimulus bill that became law in February, divided among the US Environmental Protection Agency (EPA), Army Corps of Engineers, and Department of Agriculture. Only a small portion of the total has been allocated so far, but JMS expects spending to start in earnest over the next six months.
“We are already seeing signs of life in smaller-scale markets, such as sewer pipe rehabilitation,” the report says.
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