US$ 1.8 Trillion Water, Wastewater Utility CAPEX and OPEX Forecast Hinges on Inflation, Recessionary Concerns in U.S. and Canada

During 2022-2030, annual spend in US and Canada – for approximately 70,000 water and wastewater utilities – is forecasted to grow from US$188 billion in 2022 to US$223 billion in 2030.

WD News: According to a new Bluefield Research report, “U.S. & Canada Municipal Water Outlook: Utility CAPEX & OPEX Forecasts, 2022–2030”, the municipal water sector in the U.S. and Canada is transforming – from supply chain volatility and labor force disruptions to unprecedented infrastructure investment. These countervailing forces, among others, are reshaping the long-term trajectory and focus of US$ 1.8 trillion of capital and operating expenditures through 2030.

U.S. and Canada CAPEX by Asset Type, 2022-2030 (Source: Bluefield Research)

Continued inflationary impacts on hardware, equipment, and labor prices and overarching concerns about a potential recession loom large over an industry that only recently returned to pre-great recession spending levels.

U.S. and Canada OPEX by Budget Category, 2022-2030 (Source: Bluefield Research)

“A renewed focus on utility infrastructure investment has gained momentum in recent years, particularly in the wake of the COVID-19 pandemic and growing concerns about water quality and climate resiliency”, says Eric Bindler, Senior Research Director at Bluefield. “At the same time, surging material and equipment prices, unforeseen by utilities and vendors, are disrupting procurement decisions. Key input prices are up – for example, 134% for plastic pipes and 42% for treatment chemicals – since 2020” says Bindler. High material prices can push up costs for both capital projects and day-to-day operations and maintenance.

Source: Bluefield Research
Main image courtesy: Pixabay

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