December 2016 - Water Market Insights 212

The market for industrial valves in the U.S. is likely to be greater over the next few years with Trump as president than it would have been had Clinton been elected. In the weeks since the election, the stock markets are up and corporations are more optimistic about the near-term business outlook. The longer-term outlook is less certain as is the impact on world markets.

The impact on the U.S. power industry will be positive with valve sales in 2018 rising as much as 8 percent due to Trump policies. Oil and gas will also be positively affected. The Keystone pipeline project will very likely now be built and other gas and oil projects will move through the regulatory maze more easily. The promised infrastructure program could boost valve sales to municipal water and wastewater plants.

U.S. Valve Revenues $ Millions
Industry	2018	Trump Impact %
Total	10,884	-1 to +3
Oil & Gas	1,959	0 to +2
Power	1,176	+1 to +8
Refining	1,320	0 to +1
Wastewater	1,093	0 to + 1
Water	521	0 to + 1

Trump has vowed to bring back the coal industry, allow oil and gas development on federal lands, “cancel” the international Paris climate accord, scrap Obama’s Clean Power Plan and eliminate tax incentives for wind and solar power generation. He plans to slash the budget for the Environmental Protection Agency and a new Supreme Court justice is likely to favor limits on EPA’s authority. The Department of Energy’s budget is also expected to be cut, along with a corresponding decline in funding for clean energy research and development.

· No new coal-fired power plants will be built but life extension programs will require significant numbers of valves

One trillion dollars would be allocated to an infrastructure program which would triple funding for state revolving loan fund programs to help states and local governments upgrade municipal water and wastewater plants. These plants have already allocated $75 billion/yr. over the next eight years for capital improvements. Federal funding for water utilities has fallen to $4.3 billion in 2014 from $16 billion in 1976. This has passed the burden onto states, municipalities, and ultimately ratepayers. The new source of federal funding will result in larger capital expenditures of as much as $10 billion/yr.

The market for cartridges in the U.S. is likely to be greater over the next few years with Trump as president than it would have been had Clinton been elected. In the weeks since the election, the stock markets are up and corporations are more optimistic about the near-term business outlook. The longer-term outlook is less certain as is the impact on world markets.

The impact on the U.S. power industry will be positive with cartridge sales in 2018 rising as much as 8 percent due to Trump policies. Oil and gas will also be positively affected. The Keystone pipeline project will very likely now be built and other gas and oil projects will move through the regulatory maze more easily. The promised infrastructure program could boost cartridge sales to municipal water and wastewater plants.

U.S. Cartridge Revenues $ Millions
Industry	2018	Trump Impact %
Total	4,509	-1 to +1
Oil & Gas	120	1 to +3
Power	60	+1 to +8
Refining	125	0 to +1
Wastewater	68	0 to + 1
Water	103	0 to + 1

· No new coal-fired power plants will be built but life extension programs will require significant numbers of valves

One trillion dollars would be allocated to an infrastructure program which would triple funding for state revolving loan fund programs to help states and local governments upgrade municipal water and wastewater plants. These plants have already allocated $75 billion/yr. over the next eight years for capital improvements. Federal funding for water utilities had fallen to $4.3 billion in 2014 from $16 billion in 1976. This has passed the burden onto states, municipalities and ultimately ratepayers. The new source of federal funding will result in larger capital expenditures of as much as $10 billion/yr.

The chemical and pharmaceutical industries are major cartridge purchasers. A Trump initiative to persuade international suppliers to expand in the U.S. rather than build overseas is not likely to be significant.

Purchases of commercial and residential filter cartridges should increase marginally.

The market for industrial pumps in the U.S. is likely to be greater over the next few years with Trump as president than it would have been had Clinton been elected. In the weeks since the election, the stock markets are up and corporations are more optimistic about the near-term business outlook. The longer-term outlook is less certain as is the impact on world markets.

The impact on the U.S. power industry will be positive with pump sales in 2018 rising as much as 8 percent due to Trump policies. Oil and gas will also be positively affected. The Keystone pipeline project will very likely now be built and other gas and oil projects will move through the regulatory maze more easily. The promised infrastructure program could boost pump sales to municipal water and wastewater plants.

U.S. Pump Revenues $ Millions
Industry	2018	Trump Impact %
Total	11,618	-1 to +3
Oil & Gas	4,834	0 to +2
Power	367	+1 to +8
Refining	475	0 to +1
Wastewater	1,978	0 to + 1
Water	889	0 to + 1

· No new coal-fired power plants will be built but life extension programs will require significant numbers of valves

One trillion dollars would be allocated to an infrastructure program which would triple funding for state revolving loan fund programs to help states and local governments upgrade municipal water and wastewater plants. These plants have already allocated $75 billion/yr. over the next eight years for capital improvements. Federal funding for water utilities has fallen to $4.3 billion in 2014 from $16 billion in 1976. This has passed the burden onto states, municipalities and ultimately ratepayers. The new source of federal funding will result in larger capital expenditures of as much as $10 billion/yr.

Utility E-Alert Tracks Billions of Dollars of New Coal-fired Power Plants on a Weekly Basis

The 41F Utility E-Alert is issued weekly and covers the coal-fired projects, regulations and other information important to the suppliers. It is $950/yr. but is included in the $3020 42EI Utility Tracking System which has data on every plant and project plus networking directories and many other features.