US demand for water, wastewater pipe to approach $18B in 2016
A new market report from Freedonia finds US demand for water and wastewater pipe will rise 8.2 percent per year to $17.8 billion in 2016...
Mar. 5, 2012 -- A new market report from Cleveland-based industry research firm Freedonia Group finds US demand for water and wastewater pipe will rise 8.2 percent per year to $17.8 billion in 2016. Declines experienced over the past five years, spurred by the recent economic downturn, are expected to rebound. Factors fueling rising demand include a more favorable environment for public infrastructure spending, healthy increases in building construction spending and the continued need to upgrade and repair the country's aging sewer and water pipe network.
According to the report, near-term gains in the housing market will be modest but recovery is expected by 2016. This will fuel construction spending, which in turn will result in increased pipe demand.
Demand for pipe in the municipal market is expected to get a boost from improved government spending on infrastructure projects. As the economy recovers, water utility suppliers will have additional revenue to invest in pipe replacement.
Despite this improvement, the nation's water infrastructure is expected to remain in disrepair. The market researchers found legislators and pipe industry participants hope to increase private investment in public water infrastructure via legislation that would lift limits on tax-exempt funding for water projects.
The report highlights plastic as one of the fastest-growing pipe materials through 2016. Rising demand will be driven by resin improvements that enhance pipe performance in more demanding environments, while processing improvements will allow plastic pipe to be more cost-effective compared to other materials.