A Renewed Commitment to Infrastructure Investment Vital

The Water Infrastructure Network (WIN) recently called on Congress to celebrate the 35th anniversary of the Clean Water Act by reestablishing its commitment to investing in clean water infrastructure legislation.

The 1972 Clean Water Act authorized an infusion of federal funds demonstrating America’s commitment to restoring its precious water resources. Faced with industrial pollution, untreated sewage, and burning rivers, Congress said - enough is enough - and made a historic, long-term commitment to our nation’s water quality.

One of the major tenets of the 1972 statute was the authorization of federal financial assistance to wastewater treatment and water quality improvements. In the formative years of the Clean Water Act, the federal government invested more than $72 billion to help cities build wastewater treatment plants that significantly contributed to the clean water progress over the past 35 years. But funding levels have dropped dramatically in recent years, producing an ever-widening gap between identified needs and resource commitments.

However, much more needs to be done. The EPA estimates that 40 percent of our nation’s waters are impaired for their most basic uses of fishing and swimming. The Water Infrastructure Network estimates the 20-year need for clean water infrastructure at approximately $300-$500 billion over the next 20 years. The WIN estimate is echoed by the EPA and the Congressional Budget Office. Despite this data, federal funds for water infrastructure have plummeted 70 percent since 1980 and almost 50 percent since 2001. Left unaddressed, enormous infrastructure gaps could have severe consequences.

WIN believes the Senate should act as soon as possible to introduce and pass similar legislation to the Water Quality Financing Act of 2007, which passed the House and would provide $14 billion over four years for the Clean Water State Revolving Fund. WIN also believes a long-term, sustainable funding solution via a clean water trust fund is essential, and we commend the October 16, 2007 House passage of a bill making a commitment to work toward such a trust fund.

Steve Sandherr, Chief Executive Officer of the Associated General Contractors of America (AGC) said, "While measurable progress has been made in making the nation’s waters swimmable and fishable over the last 35 years, the lack of funding at all levels of government puts these gains at risk. There is an urgent need for an immediate boost in funds for both the Clean Water and Safe Drinking Water State Revolving Loan Fund (SRF) programs. There is also wisdom behind establishing a sustainable source of funding for clean and safe drinking water infrastructure, much like the Highway and Aviation Trust Funds."

Source — The Water Infrastructure Network

Spending Accelerates for the Food and Beverage Industry

The Food and Beverage industry, with more than $8 billion in capital expenditures earmarked for construction in 2007, is experiencing tremendous growth in several segments of the industry. Particularly, investments in the wine and spirits sector are on the rise as producers plan to pour more than $1.5 billion to build new distilleries and expand alcoholic-beverage production.

Demand for raw materials to drive the boom in alternative fuels has resulted in price increases for grains and similar agricultural products that are traditionally used as feedstock for food processors. This increase in demand for grain and related products is driving feedstock cost for food processors even higher, prompting some in the industry to plan to curb their plans for capital expenditures. Increased grain prices also influence the cost of raising livestock, especially turkey and chicken, and have forced price increases all the way to the consumer at the retail level. Crop plantings are reaching an all-time high.

Other segments of the industry performing equally as strong include meat processors for poultry and beef, prepared foods and a growing thirst for vitamin or mineral-enriched water. Grass root plant construction is planned for each of these segments, as well as major plant expansions, with several topping $100 million. As societies across the globe continue to look for conveniences to speed up their already busy lives, the demand for prepared foods, such as French fries, snack foods and pre-packaged meals, continues to present significant growth opportunities for producers in the segment. These plants require some of the most sophisticated, high-speed, automated and cleanest processes in the industrial market, presenting a tremendous opportunity for equipment and service providers.

Future investments in this industry will continue to focus on long-term cost savings and expansions to meet population growth in specific regions. Health-conscious consumers will continue to drive demand for food products that offer increased nutritional value matched with convenience.

Source - Industrial Info Resources (Sugar Land)

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