February 2021 Vol. 76 No. 2
Editor's Log
Editor's Log: UCT Moves to July
Robert Carpenter | Editor-in-Chief
Even as we were completing a successful Underground Construction Technology International Conference & Exhibition (UCT) in late January 2020, the world was learning about a looming health concern with a rapidly spreading virus called COVID-19. By early-March, countries around the world – the United States included – started taking drastic measures to halt the spread of a growing pandemic that continues to strike fear around the world. By early summer, we realized that we had no choice but to be pro-active and delay UCT until mid-May of 2021.
Now comes what we believe is another pro-active decision. With the COVID vaccination program slow to gear up, combined with recent virus surges after the holidays, prospects are slim that conferences can attract much of a crowd for the first five or six months of 2021. Therefore, we’re moving UCT a final time to July 13–15. It will still be held at the Nashville Music Center in Nashville, Tenn.
Really, it was an easy decision. In July, the majority of Americans should be inoculated, and the underground infrastructure markets will be in full summer construction season mode.
With any luck, that promised infrastructure spending bill will even be a reality for sewer and water markets, joining the $9 billion already designated for the telecommunications industry to supply broadband to underserved areas. Gas distribution companies also have a full slate of work planned for 2021 as do electric companies. While large pipeline projects will be limited in 2021, not to be overlooked are the multitude of smaller projects.
We expect July will be busy for underground markets. It will be a time when people, desperate for critical information, can count on attending the industry’s highest level of concentrated and beneficial education available; a time for those interested in learning more about current and emerging technology; and a time for those just ready to network with ample opportunities to discuss, query and simply enjoy. And all this will be held in a safe environment, as both UCT and Nashville are carefully planning to address any health concerns that may still exist in July.
Chasing Answers
The news of the world these days, especially from the United States, continues to perplex most people. There is so much stormy weather that it’s virtually impossible to see through the clouds.
The United States has a new president and Congress. Pundits are ferociously speculating on what that means for the future. People are postulating on everything ranging from what the thread count of the new sheets on White House beds should be, to cabinet nominations, to actual policy decisions. Somewhere in the pack, underground infrastructure impacts are being considered, as well.
One thing is for certain: energy and pipeline markets are going to have a tough road ahead – at least initially – with the President Biden administration. Already, oil and gas leases on Federal lands have been frozen and the Keystone Pipeline has been nixed, despite strong protests from Canada. Our neighbors to the north wanted to have a dialogue on that subject before Biden acted but that never materialized. Killing the Keystone may have been a great way to pay off environmental supporters, but a lousy way to start a positive relationship with Canada.
Of course, a lot depends on the price of energy. Alternative energy continues to carry a higher price tag to develop and perfect than conventional petrochemical sources. If oil and gas reserves keep being depleted as world-wide economies ramp back up, that will put upwards pricing pressures on, especially with another round of price cuts by Saudi Arabia and other OPEC countries. At some point, the Biden administration may be forced to choose between cheap energy and a strong economy or expensive energy resulting in a struggling economy.
Never in a million years would I have dreamed that in 2021, I would be analyzing the impacts and effects of a virus upon the economy and operations of the sewer and water infrastructure industry. But here we are, February 2021, publishing our 24th Annual Municipal Sewer/Water Infrastructure Forecast & Market Analysis, and COVID-19 has had a huge impact on those markets.
As usual, lots of interesting material came from cities, particularly in these challenging times. Municipalities clearly took a large economic hit as the pandemic forced cities, large and small, to substantially shut down many businesses and operations for much of 2020. That meant a shortfall of user fees and local sales tax revenue. Always tight budgets just got squeezed some more for 2021.
As I noted earlier, the new political dynamic might bode well for another round of stimulus incentives. Comments from the survey respondents definitely held out hope for such funding relief. After poor jobs reports in recent months and unemployment still at high levels, anything that can spur rapid job growth is popular with politicians – assuming the money truly goes where it belongs. Infrastructure investment is the shot in the arm that our economy so desperately needs.
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