The Water and Wastewater Equipment Manufacturers Assn. (WWEMA) and Boenning & Scattergood Inc. have released the 2015 4Q WWEMA/Boenning Leading Index, which is formulated to provide insight into near-term market and funding conditions related to municipal water and wastewater projects. The index showed a slight decline in the fourth quarter from the previous two quarters, barely clinging to a positive outlook entering 2016. According to the report’s author, Boenning & Scattergood Managing Director Ryan Connors, this indicates the outlook for water and wastewater project spending remains positive for the next 12 months but is more tenuous than previously thought.
“If I were to point to one theme,” Connors said, “it is that although the municipal sector is less cyclical than some verticals such as oil, gas and agriculture, it is not immune to the effects of the broader economy.”
On the positive side, a review of the market and the key factors that make up the Index indicate that water utilities are continuing to expand their payrolls and ramp up their operations and maintenance spending.
The index and its accompanying report are based on five data-driven factors: municipal bond issuance; water and wastewater utility employment figures; water infrastructure equity performance; residential building permits; and ductile iron pipe pricing. The full report includes charts relating to these factors, depicting data and trends dating back three to five years, as well as additional background and analysis. It is available exclusively to WWEMA members. For information on WWEMA and membership, visit www.wwema.org.
Source: Water and Wastewater Equipment Manufacturers Assn.
