Repair, replacement and new infrastructure for the water would be money well spent to benefit future generations. The argument that economic stimulus to the economy to provide jobs today puts a burden of debt on future generations is mitigated when long term needed projects are done. From what i have heard the existing water infrastructure including pipe in the cities is aging and failing and wasteful. Using some of the stimulus package from governments to repair and even build new water supply, delivery and treatment makes sense and will benfit today and future generations. Also makes sense when labor and material prices are weaker in recession time. In some cases upgrade and repair will also improve the water quality. I also think better water management in agricultural areas is needed. In my opinion this is more important and useful than highway construction. jmho.
Interesting how people (investors) think about roads and bridges, while also important out of sight out of mind water distribution and treatment are even more important. Improvement to water and waste water infrastucture would be giving back something for future generations, as opposed to how we are chewing up resources. In the developing natiions they have yet to start. Looking at Cholera and other illness one can not over estimate the importance of water treatment, perhaps something lost on their governments. Still waiting for this sector to take off. Underinvestment in water infrastructure will have to get dealt with soon. jmho
out of sight out of mind certainly applies. look at Ireland this week. At some point the governments will have no option to delay up-grade or repair to infrastructure. No dout a lot of major N.American cities are paying "hidden" costs of not replacing/repairing their systems. only a matter of time before this and other factors force up demand on this sector. jmho
Pamphlets from the water utility in my city are telling the people the aging distribution system is coming to the end of its life span and major replacement plan is underway. It seems to me out of sight out of mind still applies with water infrastructure. When governments announced major infrastructure funding they focused on roads, bridges etc, with little or no mention of water infrastructure, which in all fairness lasts a long time. Still it looks to me like this next decade will see even more repair and replacement in the major cities along with new growth in developing nations, like China and India.
It was glv the Canadian company making a bid for Christ water technology in europe. Interesting to see the glv stock go up as it is making the bid. It would appear that many are anticipating the growth in the water sector. It is a surprise to me that this sector is not growing faster. Better early than late. jmho.
Interesting to see the acquistion glv is trying to make and its effect on the share price. Also saw a major engineering firm ceo on tv last night say his firm is predicting a lot more work in the water and waste water sector going forward, and is getting ready for that.
Interesting article on Bloomberg: "Goldman says India needs 1.7 trillion for utilities, roads, railways and other infrastructure" in an article by Pooja Thakur. Ultimately if India and China and African nations are to attain a higher standard of living/quality of life they must improve their infrastructure. Innovation and prosperity are enhanced and only really happen when basic infrastructure is their to nurture it. One area highlighted in the article is 272 billion required for better irrigation. Irrigation for farming and clean water and waste water treatment for the population are essential, even more so than roads, railways etc. It would appear to me that politicians are slowly coming to understand this, which is difficult for those with only a 4 year or next election time horizon.
Most of the demand on fresh water supplies is coming from agriculture, and that is where upgrades to irrigation systems and ground water management is urgently required. If one looks at the news of potential famine in African nations and water troubles in India it is clear infrastructure and water management are key issues that need to get taken care of. I think China and wate table issues are looming as well. So both water supply and wate water treatment are coming from the farming sector.
As is our human nature, we tend to be reactive
vs. proactive when confronted with these problems.
Unfortunately whether it be global warming or
water shortages, we wind up being a buck short and a day late and these problems/damages become irreversible.
Two major issues are costs and logistics.
I think water infrastructure is also been put off in many countries. It is pretty tragic that a lot of health issues in many counties are related to poor water quality, but they seem either unable to understand that or unable to deal with it. Even in north america many municipalities and especially rural ones dont take the importance of well maintained and regulated water system seriously enough. note the tragedy in Walkerton Ontario a few year back. I think education is helping this situation. Major growth should come from China, India, and African nations. The further electrification of Africa and India probably will go hand in hand with better water infrastructure. Of course the rise of a new middle class in some nations should also drive for better standard of living including better water quality. lots of growth should happen even without more pressure from growing population.
Saw some earth day progam that talked about the input of pollutants to water ways from storm water run off. Storm water run off from cities it would seem from this documentary has substantial amounts of pollutants that go untreated into water ways. I dont know how accurate the data was but the cumulative number for things like oil was higher than one might expect. one wonders if storm water treatment might come along with pollution limits for city storm water run off.