July 15, 2010

Utilities, water projects top list of U.S. engineering prospects

PATRICIA WILLIAMS

staff writer

ST. ANDREW’S, N.B.

Before putting the finishing touches on a recent presentation on trends in the U.S. market, PSMJ Resources Inc. consultant Ken Tichacek picked up the phone and called the firm’s Atlanta-based research director.

“I asked Bill Fanning, ‘What should I tell this group,’ ” Tichacek told the annual convention of the Association of Consulting Engineering Companies-Canada. “He said, ‘Tell them thank God you’re engineers and not architects.’ ”

In his presentation, Tichacek focused on trends in five key markets for consulting engineering firms. These sectors are benefiting to varying degrees from federal infrastructure stimulus funding.

Based on the results of PSMJ’s most recent quarterly survey of architecture and engineering firms, Tichacek said skies are “sunny” in the energy/utility market and “mostly sunny” in the water/wastewater area.

Clouds are on the horizon in the transportation field, while the environmental market is “at a tipping point.” Industrial markets will remain weak this year, although there is light at the end of the tunnel.

In the energy and utilities sector, strong submarkets include power plants, alternative energy, utility distribution, telecommunications/cable and pipelines, Tichacek said.

“New federal funding is just now kicking in,” he said. “Alternative energy work will boom. So, proposal opportunities will remain strong throughout 2010 and for several years.”

In the water and wastewater market, Tichacek said this sector is expected to be strong for the rest of the year. Long-term prospects depend on the return of the housing market and future water quality regulations. Firms should focus on areas of population growth and “stressed’ water supply.

In the environmental sector, strong submarkets include waste disposal, site cleanup, resource management, wetlands, air pollution — and the Gulf of Mexico cleanup.

“Environmental markets depend on legislation — which is always a crapshoot,” Tichacek said, noting that regulations are expected to be tied to carbon emissions and energy independence.

In the transportation sector, strong submarkets include roads, bridges, rail and planning.

While the American Recovery and Reinvestment Act will have “a big impact” on transportation funding this year, fuel tax receipts will decline in the long term, requiring new off-setting revenues to be found.

In the industrial sector, strong submarkets include component assembly, mining resources, petroleum facilities, chemical plants and pharmaceutical facilities.

But overall, industrial markets will remain weak this year, with high excess capacity retarding capital projects.

“But history has shown that this market can turn quickly, so prospects look good for 2011 and beyond.”

Print | Email | Comment