The Water and Wastewater Equipment Manufacturers Association (WWEMA) and Boenning & Scattergood Inc. have released the 2017 2Q WWEMA/Boenning Leading Demand Index, formulated to provide insight into market and funding conditions related to water and wastewater projects. The Index declined slightly in the second quarter, and although key indicators remained directionally positive, the declining rate of growth indicates a maturation of the cycle that is likely to impact sales growth. According to the report’s author, Boenning & Scattergood Managing Director Ryan Connors, the 2Q Index reading indicates that the municipal water and wastewater cap ex cycle is in the process of plateauing at a healthy level.
The report tracks five factors including municipal bond issuance, water and wastewater utility employment data, water infrastructure equity performance, residential building permits, and ductile iron pricing to gauge market and funding conditions related to water and wastewater projects. A review of the market and some key factors that make up the Index indicate the demand outlook for water and wastewater equipment remain positive, but the pace of growth is likely to slow; municipal utility payrolls rose in April, but appear likely to turn negative in 3Q 2017; and housing permits declined in May, but the outlook for homebuilding remains positive.
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, visit www.wwema.org.
Since 1908, WWEMA has informed, educated, and provided leadership on the issues that shape the future of the water and wastewater industry. Its member companies supply the most sophisticated leading-edge products and technologies, offering solutions to every water-related environmental problem and need facing today’s society.
Boenning and Scattergood’s investment banking group provides comprehensive mergers and acquisitions, corporate finance, and capital markets advice to leading private and public middle-market companies in a diverse range of industries. For more information, visit www.boenning.com.
SOURCE: The Water and Wastewater Equipment Manufacturers Association (WWEMA)