·        $1 Trillion to Expand and Repair Drinking Water Infrastructure in the U.S.

• ·        New Municipal Water Projects in North America

·        World’s Drinking Water Plants to Spend $18.5 Billion on Treatment and Flow Control this Year

·        Air/Gas/Water/Fluid Treatment and Control Market Boosted by New Industries and Regulations

·        Cross-Flow Membrane Revenues Will Exceed $9.3 Billion This Year

$1 Trillion to Expand and Repair Drinking Water Infrastructure in the U.S.

The cost of repairing and expanding drinking water infrastructure in the United States will exceed $1 trillion in the next 25 years. This is the conclusion in a new study by the American Water Works Association. The cost of needed repairs will double from around $13 billion a year now to roughly $30 billion (in 2010 dollars) per year by the 2040s.

“Because pipe assets last a long time, water systems that were built in the latter part of the 19th century and throughout much of the 20th century have, for the most part, never experienced the need for pipe replacement on a large scale,” the report states. “The dawn of an era in which the assets will need to be replaced puts a growing stress on communities that will continue to increase for decades to come.”

Key findings from the report include:

• The needs are large. The cost of replacing pipes at the end of their useful lives will total more than $1 trillion nationwide between 2011 and 2035 and exceed $1.7 trillion by 2050.
• Household water bills will go up. Although water bills will vary by community size and geographic region, for some communities the infrastructure costs alone could triple the size of a typical family’s bill.
• There are important regional differences. The growing national needs affect different regions in different ways, with growth concerns greater in the South and West and replacement concerns greater in the Northeast and Midwest.
• There are important differences based on system size. As with many other costs, small communities with fewer people to share in the costs face the biggest challenge.
• The costs keep coming. Infrastructure renewal investments are likely to be incurred each year over several decades. For that reason, many utilities may choose to finance infrastructure replacement on a “pay-as-you-go” basis rather than through debt financing.
• Postponing investment only makes the problem worse. Postponing infrastructure investment in the near-term would raise the overall cost and increase the likelihood of water main breaks and other infrastructure failures.
•  

New Municipal Water Projects in North America

Here are the headlines from our North American Public Water Plants and People.  The latest project information is published every two weeks. For more information on this service click on:  North American Public Water Plants and People, click on:  http://www.mcilvainecompany.com/brochures/water.html#67ei

ALABAMA

Morgan County Considers New Water Plant

$21 Million for Florence Water Plant Upgrade

CALIFORNIA

Sacramento Needs Water Plant Renovation

COLORADO

Rifle Votes to Build $25 Million Water Plant

FLORIDA

$1 Million for Mims Water Plant Fix

KANSAS

St. John Considers Building Water Treatment Plant

KENTUCKY

Kentucky Selects Seven Water Treatment Systems for Special Assistance Funding

LOUISIANA

Monroe Needs Water System Needs Repairs

MARYLAND

Hagerstown OK’s $200,000 for Water Treatment Plant Upgrade

MASSACHUSETTS

Bellingham to Begin $76,000 Water Study

Milford Water Co. Awards Bid for New Treatment Plant

MINNESOTA

St. Cloud Water Treatment Plant Set for Upgrade

Willmar OKs Water Treatment Pilot Project

MISSISSIPPI

Hattiesburg Requesting Bids for Water System Expansion

NEVADA

Tonopah Requesting Bids for Water Plant Improvement Project

NEW JERSEY

Woodbine Water Plant Work Contract Awarded

NEW MEXICO

Hachita Requesting Bids for Water Plant Improvement Project

NEW YORK

Cost of New United Water New York Plant Questioned

OHIO

Batavia Requesting Bids for Water Plant Renovation

Attica to Make Drinking Water, Wastewater Treatment System Improvements

PENNSYLVANIA

Gannett Fleming Designs Red Lion Water Treatment Plant

Birdsboro to Execute Contracts for New Water Treatment Plant

WEST VIRGINIA

Morgantown Requesting Bids for Water System Improvement Project

WISCONSIN

Cedarburg, Grafton, Mequon Considering Regional Water Plant

CANADA

Oakville Requesting Bids for Water Project

Peace River Will Discontinue Use of Fluoride at Water Treatment Plant

RECENT CHEMICAL BID REPORTS

World’s Drinking Water Plants to Spend $18.5 Billion on Treatment and Flow Control this Year

The world’s drinking water plants will be expanding purchases of treatment and flow control products this year by more than 5 percent. Expenditures will exceed $18.5 billion. This total is an aggregate of forecasts in a number of McIlvaine reports.

Expenditures for cartridges will be relatively small due to the fact that these filters are disposable and not well suited for large flows. Liquid macrofiltration including sand filters plays a big role in purifying drinking water.  Clarifiers and centrifuges are also used and result in the largest revenues in the sedimentation/centrifugation category. Also in this category are dissolved air flotation systems which provide effective separation of small particles.

Cross-flow membrane systems are finding increasing use in purifying drinking water because of their high efficiency.  Reverse osmosis cross-flow systems can remove salts and are used to purify brackish water. (Desalination is included separately in McIlvaine forecasts.) Ultrafiltration and microfiltration are being utilized instead of sand filters because of their ability to capture microbes which cause diseases 

Drinking water plants will spend just under $6 billion this year for pumps. The transfer of raw water to the plants and the distribution of the drinking water to residential, commercial and industrial users involve hundreds of billions of gallons of water per day. The expansion of the drinking water infrastructure in Asia is boosting revenues in this sector.

The market for valves is somewhat smaller, but also sizable. Expenditures for treatment chemicals will exceed $4.6 billion this year. There is not only an increase in total volume of chemicals, but in the mix between chlorine and more expensive oxidants. The driver is the elimination of potentially toxic chlorine byproducts. 

The specific forecasts are found in the following McIlvaine reports:

Cartridge Filters: World Market   http://www.mcilvainecompany.com//brochures/water.html#nO24

RO, UF, MF World Market  http://www.mcilvainecompany.com/brochures/water.html#no20       

Liquid Filtration and Media World Markets, click on: http://www.mcilvainecompany.com/brochures/water.html#n006

Pumps World Markets http://www.mcilvainecompany.com/brochures/water.html#N019 

Sedimentation/Centrifugation World Markets, click on: http://www.mcilvainecompany.com/brochures/water.html#n005    

Water and Wastewater Treatment Chemicals: World Market

http://www.mcilvainecompany.com/brochures/water.html#NO26

Industrial Valves: World Markets http://www.mcilvainecompany.com/brochures/water.html#n028

Air/Gas/Water/Fluid Treatment and Control Market Boosted by New Industries and Regulations

The market for air/gas/water/fluid treatment and control will rise to $492 billion in 2017 based on the normal expansion of the world’s economy but also on the reaction to new regulatory developments and the creation of new industries and technologies. Details on this new forecast are displayed in the online report, Air/Gas/Water/Fluid Treatment & Control World Markets published by the McIlvaine Company (www.mcilvainecompany.com).

Fluid Treatment & Control Market 2012-2017 ($ Millions)

There are many unanticipated events which are changing the potential markets in flow control and treatment.  Regulations are important factors.  New regulations for ballast wastewater discharges and sulfur air emissions for ships will substantially boost the markets for liquid treatment and scrubbers. 

The oil spill prevention market is booming since the Gulf oil spill disaster. The market for systems to prevent escape of contaminants during a nuclear meltdown and to remediate contaminated sites is substantial.

Some of the market adjustments are due to the development or acceleration in growth in dynamic industries.  The continuing successes in developing the gas shale reserves are the best example. The more rapid conversion from ocean harvesting to aquaculture for fish products will also positively boost the flow control and liquid treatment markets.

The markets can be further boosted by a proactive approach by industry efforts.  Three initiatives which could have significant impact on the markets are:

·         Co-location of power and municipal wastewater treatment plants

·         Improved co-location of livestock and aquaculture enterprises

·         Retrofitting of ultrasupercritical technology at existing coal-fired power plants

For more information on: Air/Gas/Water/Fluid Treatment & Control World Markets, click on:  http://home.mcilvainecompany.com/index.php?option=com_content&view=article&id=71

Cross-Flow Membrane Revenues Will Exceed $9.3 Billion This Year

Worldwide revenues for reverse osmosis, ultrafiltration and microfiltration equipment and replacement modules will exceed $9.3 billion in 2012. This is the latest finding in the online report RO, UF, MF World Market published by the McIlvaine Company. (www.mcilvainecompany.com)

Cross-Flow Membrane System and Module Revenues ($ Millions)

Industry                                           2012

Chemical                                             407

Desalination                                     2,570

Food                                                    247

Metals                                                 325

Mining                                                 107

Oil & Gas                                            111

Other Industries                                  691

Pharmaceutical                                    845

Power                                                  748

Pulp & Paper                                       229

Refining                                              109

Residential/Commercial                      698

Semiconductor                                    237

Wastewater                                         341

Water                                               1,701

Total                                                 9,366

Desalination will be the leading segment and will account for 27 percent of the revenues. The Middle East will account for 26 percent of the total desalination revenues. Asia is gaining on other regions for two reasons.  One is the lack of uncontaminated water and the second is the growth in demand due to industry expansion.

The Asian power plant owners will account for more than 40 percent of the cross-flow membrane equipment purchases by the world’s electrical generating industry. This is due to the substantial investment in new coal-fired power plants in China, India and other Asian countries. The majority of the purchases of cross-flow equipment and modules for the pharmaceutical industry will be by manufacturers in Europe and the U.S.

Wastewater reuse is becoming increasingly popular. Membrane bioreactors provide a cost effective way to combine biological treatment with efficient membrane particle removal. The concept of sewer mining in conjunction with membrane bioreactors minimizes the transport problem for water reuse for golf courses and similar grey water classifications. The present market is only $341 million/yr for membranes in wastewater but the growth will be at double-digit rates for the next five years.

Microfiltration and ultrafiltration continue to make inroads in the municipal drinking water industry. Traditionally sand filters have been used for drinking water purification. But membranes remove more microbes and make water safer.

For more information on RO, UF, MF World Market, click on: http://www.mcilvainecompany.com/brochures/water.html#no20       

TUE20 – Leadership Forum: Business Management for the Future

Moderator: Ane Deister Entrix

Technologies, economics, society, and environment issues will change the water industry in the future. Utility experts will discuss in detail the major factors shaping this future. Find out how you can manage these changes before they manage you.

.01 2:00 PM
Introduction and Review of the AWWA State of the Industry Report

You can register for our free McIlvaine Newsletters at: http://www.mcilvainecompany.com/brochures/Free_Newsletter_Registration_Form.htm.

Bob McIlvaine

President

847 784 0012 ext 112

rmcilvaine@mcilvainecompany.com

www.mcilvainecompany.com