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GROUNDBREAKING NEWSNew CWC ReportSupports theValue ofInfrastructureInvestmentA new report by the Clean Water Council(CWC) illuminates facts that our leaders need toknow, not only as Congress implements the massiveeconomic stimulus package passed in February,but also for decades to come as the NationalUtility Contractors Association (NUCA) seeks toincrease funding for water and wastewater infrastructure(e.g., SRF appropriations and reauthorization),support efforts to create a water infrastructuretrust fund, create opportunities to createmore opportunities for private investment in water/wastewaterinfrastructure markets, etc. To thatend, NUCA has provided copies to all legislativeoffices on Capitol Hill, each CWC member and allthe members and chapters of the NUCA.In commenting on the value of the Sudden Impact:Assessment of Short-Term Economic Impactsof Water and Wastewater Projects in the UnitedStates report, NUCA CEO Bill Hillman had this tosay: “By revising and expanding the much-heraldedCWC findings from the early 1990s, the new findingswill be instrumental in our struggle to drawpublic and political attention to the growing infrastructure crisis andprocure new funding to meet documented national needs.”The report shows that targeted water and wastewater investmentcontained in a wide range of legislation could, in short order,generate hundreds of thousands of skilled positions payingliving wages. As noted in the report, “a $1 billion investment inwater and sewer projects [also] generates measurable nationalemployment in 325 other standard industry classifications,everything from tires to tortillas.”The report also shows that a $1 billion investment in waterand wastewater infrastructure results in total national output(i.e., demand for products and services in all industries) of between$2.87 billion and $3.46 billion, creates up to 26,669new jobs (with average annual earnings for the constructionportion of the jobs at an impressive $50,396) and generatespersonal (household) income of between $1.01 billion and$1.06 billion. In addition, each $1 billion invested generatesapproximately $82.4 million in state and local tax revenue.8 Utility Contractor | July 2009The results are based on actual data collected from 116 waterand wastewater construction projects in five demographicallydiverse states, including 73 different counties. The projects werecompleted in 2006 and 2007 and encompass a comprehensivearray of geographic regions, project types, size, materials,construction methods and labor markets. The output, jobs andincome (direct, indirect and induced) tied to these projectswere determined at the county, state and national levels usingtwo respected input-output models and multipliers (IMPLANand RIMS II).“The CWC took inventory of actual projects in order to fuelthe models with real-world data that accurately reflect currentactivity. The report is short and sharp, and the economic findingsare rock solid,” added Hillman. “Not only are the impactssudden, but they are also significant, targeted to an area of realneed and do not increase the size of government.”Each of the 116 projects analyzed in the assessment weavesa powerful local story, quantifying the interactions between
GROUNDBREAKING NEWSMore funding means more jobs. It’s estimated that properinfrastructure funding could generate hundreds of thousandsof skilled positions paying living wages.firms, industries and social institutions within a local economyand rippling outward across regional and state boundaries tobenefit the entire nation.“For example, a New Mexico township authority contractedwith a local utility contractor for $3.27 million to expand thewastewater treatment plant, including new headworks and a storagehandling facility,” said Peg Krecker, one of the report’s authors.“This initial investment in construction added an additional $1.66million of demand to the local economy. Slightly less than $1 millioninvolved indirect effects such as engineering services, wholesalebusinesses and industrial machinery and equipment. Just over$750,000 of demand stemmed from household spending includinghousing itself, health care and retail stores for everything fromfood to automotive parts to gardening supplies.“On top of this, an additional $1,730,000 in personal incometo employees in the region resulted from growth in local economicdemand. Finally, the number of jobs in the area grew by50, 32 of which were construction jobs that paid approximately$41,000. This necessary upgrade made a striking impact inSanta Fe County.”The report was made possible by contributions from the AmericanCouncil of Engineering Companies, American Road and TransportationBuilders Association, American Society of Civil Engineers,Associated Equipment Distributors, Association of Equipment Manufacturers,Caterpillar, Ductile Iron Pipe Research Association, JohnDeere Construction Equipment Co., Laborers-Employers Cooperationand Education Trust, National Stone, Sand and Gravel Association,National Utility Contractors Association, Plastics Pipe Institute,Portland Cement Association, The Vinyl Institute and Water andSewer Distributors of America.For a copy of the report, contact NUCA at (703) 358-9300.Date: Tuesday, July 28 & Wednesday, July 29, 2009 Time: 2 PM Eastern/11 AM Pacifi cCost: $149 (includes log-in information for both days)Title: Asset Protection & Business Succession StrategiesBusiness succession planning involves planning for the smooth continuation and success of a business from one generation to the next.The general statistics quoted by experts say that only 30 percent of the business will survive to the second generation and just 10 percent willsurvive to the third generation. What are the reasons for this lack of success? There are fi ve basic factors that affect the success or failure ofthe business succession:1. The senior generation does not spend enough time on succession planning2. The successor’s abilities do not meet the company’s real needs3. Estate taxes4. Potential lawsuits5. The changing business environmentHow can you be more confi dent your plans will be successful? Register today for this two part Webinar presented by Dennis Zaverl, presidentof Zaverl & Associates Inc., to ensure you are on the right path for a solid business future. Go to www.utilitycontractoronline.com/index/webinarsfor more information and to register.About the presenter:Dennis Zaverl is the president of the Zaverl & Associates Inc., an Ohio-based family business planning resource. For more than 30 years, he has been a consultant and advisor tobusiness owners and executives planning for the future of their companies. As part of his own succession planning Dennis’ daughter joined his fi rm in 1998.To enroll in this Webinar session, visit www.utilitycontractoronline.com/index/webinars.July 2009 | Utility Contractor 9
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