Underground Construction - February 2020 - 14

Robert Carpenter | Editor-in-Chief

23RD ANNUAL MUNICIPAL SEWER/WATER INFRASTRUCTURE FORECAST

Cities Expect Spending Plans to be
It's a presidential election year and usually
that spells trouble for public works funding
programs. Political action is polarized by
campaigning, mudslinging and bravado.
The results are generally stalled or reduced
spending plans, nervous investors and an
uncertain future for underground infrastructure. However, for the sewer, water
and stormwater markets, that doesn't seem
to be the case in 2020.
Politicians at the national level have
their attention tightly focused on issues
and crises - some contrived, some very
real. State and local agencies/municipalities are struggling with their own set of
sometimes common, sometimes unique
problems. But through it all, infrastructure
renewal is a common theme at both the
national and local stages. Even better news
is that going into 2020, municipalities are
cautiously optimistic about funding opportunities for many much-needed projects,
particularly involving rehabilitation.
The 23rd Annual Municipal Sewer and
Water Infrastructure Survey & Forecast,
conducted by Underground Construction
magazine in October and November of
2019, queried municipal personnel about

a variety of important subjects, among
them projected spending for 2020.
It was slow start in 2019 for sewer/
water infrastructure investment, but by
summer, projects had ramped up for a
strong finish to the year. Survey respondents felt, for the most part, that their
increased work flow and project releases
would continue through 2020, particularly in the traditionally strong economic
states. While still very cautious, municipal
personnel appear to believe that a prolonged stronger economy, combined with
encouraging developments at the state
and congressional levels, would support
increased spending.

Spending plans
New installation of sewer infrastructure
is projected to increase in 2020 to $5.3
billion with an increase to $3.8 billion for
water construction - up from $3.74 billion. Rehabilitation continues to outpace
new construction in its growth curve.
Sewer rehab is projected to grow to $5.0
billion, with water getting a 0.5 percent
($2.3 billion) spending boost. In total,
spending plans for sewer, water and storm

Construction/Rehab Spending
Sewer

Water

Storm water

Billions

1.1

1.0
2.1

1.9

4.3

1.5

2.2

2.3

1.4

2.0

2.1

4.4

4.6

4.7

4.8

5.0

2016

2017

2018

2019

2020

1.2
1.8

4.7

1.46

1.3

5
4

3.7

3.74

3.8

5.0

5.2

5.3

2017

2018

2019

2020

1.9

3.8

3.6

3.7

4.3

5.0

5.1

2014

2015

2016

1.3

2.0

1.5

1.95

2.1

3.6

1
0
2014

2015

Rehabilitation

FEBRUARY 2020 | UConOnline.com

Projected

New construction

water piping infrastructure are projected
to be $19.9 billion in the U.S. for 2020.
The survey polled U.S. municipalities
about their top concerns and issues, 2020
infrastructure spending plans, and working
relationships with consulting engineers
and contractors. This exclusive annual
study also provides detailed insight of
America's cities with information and perspectives on industry topics and technology. The survey reflects only information
regarding sewer, water and stormwater
piping infrastructure and does not include
figures or data on pumping stations, treatment plants, etc.
Respondents ranged in size from rural
communities of less than 500, to mid-sized
cities and a representative sampling of the
nation's largest cities.
Presidential hopefuls on the Democratic
side of the aisle all have embraced infrastructure investment. Some have touted spending
of a trillion dollars. Yet, like some of their
other programs, details as to how such plans
would be funded remain elusive. President
Trump's plans for infrastructure to date
have been only moderately successful.
The good news is that in 2020, the
Drinking Water State Revolving Funds
(SRF) will be available at their 2019 funding
levels. Congress turned down the Trump
administration's demand to reduce funding
for the Drinking Water and Clean Water
SRFs in fiscal 2020, which began Oct. 1,
2019. In the final fiscal 2020 appropriations
bill, passed in mid-December, Congress
gave the Clean Water State Revolving Funds
$1.64 billion and the Drinking Water State
Revolving Funds $1.13 billion.
The Water Infrastructure Finance and
Innovation Act (WIFIA), which was revised
in 2018, is beginning to have a major
impact. The program is designed to accelerate investment in water infrastructure
by providing long-term, low-cost supplemental loans for regionally and nationally
significant projects.
While the SRFs provide revolving loans to
the states and localities, the WIFIA provides
credit assistance for large projects, with the

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Underground Construction - February 2020

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