Water Industry Spending Still on the Rise - But Clouds Loom According to New ChangeWave Survey
Midst mounting concerns over the scarcity and quality of the world's water supply, a recent ChangeWave survey of industry professionals found increased water project spending for 2008 - but not at the extraordinary levels of recent years. And troubles may lie ahead.
Rockville, MD (PRWEB) April 9, 2008 -- Spending on water projects over the next 12 months is increasing but not at the extraordinary levels of recent years, according to a ChangeWave survey of 147 professionals working in the water industry.
The results show two thirds (67%) of respondents think water industry spending will increase. And while that's still a strong number, it is a substantial 14-point decline from the previous water industry survey in June 2007.
Clouds on the Waterfront
According to the survey, there are clouds looming over the water industry that could drive down spending numbers -- and they're focused on the U.S.
Analysts have recently reported that 40% of fresh water consumption in the U.S. is from industrial applications, but those levels normally decline during an economic recession. Notably, the stock prices of many U.S. water utility companies have fallen due to fears of a recession.
At the same time, the survey results show a reduction in the percentage of U.S. industry respondents who think water project spending will increase over the next 12 months within the private, federal and local government sectors.
What is the main reason for these more conservative growth projections? By better than a 2-to-1 margin, industry respondents believe a U.S. recession would lead to a decline in spending on water projects.
(Detailed charts on Water Industry Spending Trends, along with additional ChangeWave findings can be downloaded at changewave.com/water).
"Investors in water should keep a close eye on water project spending during a recession," says Josh Levine, co-editor of ChangeWave Investing. "But our survey also shows there are still plenty of opportunities out there. In particular, industry respondents are most excited about two sectors right now -- Wastewater Treatment and Water Infrastructure Repair and Replacement. That's where we are focused."
Regarding the top water companies, respondents ranked conglomerate General Electric (GE) (42%) as the leader. Other industry notables included American States Water (AWR), Flowserve (FLS), Gorman-Rupp (GRC), Calgon Carbon (CCC) and Nalco Holding Co. (NLC).
To sign-up for real-time email alerts from ChangeWave on emerging technology trends and companies, visit changewave.com/hotwire.
About ChangeWave:
ChangeWave runs a proprietary network of more than 15,000 highly qualified business, technology, and medical professionals in leading companies of select industries -- credentialed experts who spend their everyday lives working on the frontline of technological change. ChangeWave surveys its members on a range of business and investment research topics, collects feedback from them electronically, and converts the information into quantitative and qualitative reports. For more information, visit blog.changewave.com.
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