U.S. municipal water and waster water facilities capital expenditure (CAPEX) is expected to increase to $532 million between 2016 and 2015. Bluefield Research President Reese Tisdale notes that the research shows that the water utility sector is finally recovering from the economic downturn, public spending for water infrastructure was cut by 15% from 2009 to 2014.
Unfortunately, the forecasted increase in CAPEX, will be accompanied by a decrease in federal funding for water utilities that will put more of the burden states and other smaller entities. This means that the private secotor will have to play a greater role:
"Unfortunately, all of this spend is not expected to cover the full cost to catch up to an aging system, particularly if the federal government is not going to step in,” reflects Mr. Tisdale. “It is for this reason, among others, that public-private partnerships will begin to take on greater significance. They enable deployment of more advanced solutions in an industry that does not lack technology options, but rather capital.”