Insituform Technologies, Inc. recently discussed the continuing stagnation of spending levels in the U.S. sewer pipeline rehabilitation market, outlining its plans to address the impact of market stagnation on Insituform and providing direction for 2007. Thomas S. Rooney, Jr., president and chief executive officer, outlined the company’s ideas.
First, the company plans to accelerate the expansion of sewer pipeline rehabilitation work outside of the U.S. Spending on sewer pipeline rehabilitation continues to grow at reasonable rates in Europe and other countries outside of the United States. In Canada, for example, revenues increased 65 percent in 2006 vs. 2005.
The company also plans to speed the growth of Insituform Blue™, their water pipeline rehabilitation business. In 2006, Insituform launched this new division to focus exclusively on the drinking water pipeline business.
Another goal is the slight reduction of crew-based operations in the U.S. sewer pipeline rehabilitation market. This will enable Insituform to redirect some resources to international operations, Insituform Blue™ and other potential growth segments.
Finally, Insituform wants to challenge what they see as complacency among infrastructure policy-makers. Rooney noted the recent Booz Allen Hamilton research report projecting a worldwide need for $41 trillion worth of urban infrastructure modernization and expansion world-wide in the next 23 years, with almost $23 trillion of that amount to be spent on sewer and water infrastructure.
Source: Business Wire