Underground Infrastructure - January 2023 - 6

EDITOR'SLOG
Robert Carpenter | Editor-in-Chief
More of the Same
In this issue of the new Underground
Infrastructure magazine, we've connected
with some of the best experts, prognosticators
and writers in the markets
we serve to obtain a reasonable grasp as
to what 2023 will look like in financial,
construction and rehabilitation terms.
Indeed, there is so much material, we'll
continue the insight and analysis in our February issue.
For much of the industry, 2023 will mirror 2022. Fiber
construction and non-stop deployment of 5G systems will
keep the pedal to the metal for that market. It's a rare situation
where private business has been driving the financing for this
massive build-out for several years, yet government money has
further enhanced it.
The now-famous Infrastructure Bill guaranteed more than
$50 billion to bring fiber to rural and underserved areas, as well.
That means more cross-country installations like we saw in the
late '90s - but this time with a purpose and plan.
Connecting remote suburbs and scattered small towns is,
and will continue to be, a common site across America for the
next several years. As I've pointed out before, this funding/
build-out is reminiscent of the movement to bring electricity to
small towns, farms and ranches in the Depression era 1930s.
Electricity - just like fiber has been - was deemed too expensive
to cost-justify in rural areas. But the Rural Electrification
Act of 1936 provided low-cost, long-term financing that eventually
turned the light switch on. One good thing the COVID
Pandemic taught the world was that working from home is practical
and efficient if you have the right communications access.
Unfortunately for oil and gas pipelines, President Biden's
continued forced movement to an unprepared and frequently
unstainable alternative energy market will hinder energy pipeline
work in 2023. Trying to keep pipeline construction either in intrastate
mode or within energy-friendly states has allowed several
essential projects to move forward. But until the political climate
changes, there is a good chance the U.S. will return to the risky
days of a net oil importer from sometimes dangerous sources.
However, gas distribution, repair and replacement continue
to drive strong markets as cast iron pipe replacement programs
are in full stride with multi-year programs.
Power generation has also jumped to the forefront of underground
work. Daniel Shumate, FMI's managing director
for Capital Advisors, relates that power distribution spending
will also grow 26 percent over five years to repair existing infrastructure
and to prepare for a more distributed generating
environment.
The South and West Regions of the United States are anticipated
to have the greatest growth due to population trends and
6 JANUARY 2023 | UndergroundInfrastructure.com
renewable generation concentration. Also, weather extremes in
recent years are forcing electric utilities to toss out their common
" overhead-is-cheaper " approach and start looking at the
big picture. The facts are clear that a transition to underground
for power lines provides far better reliability, longevity and reduced
life-cycle costs.
All this and we haven't event discussed sewer and water. The
Infrastructure Bill provides federal spending of more than $100
billion over the next five years via bolstering state revolving
funds, accelerating pipeline replacement, improving storage and
resilience infrastructure for droughts, and addressing emerging
contaminants (PFAS). Our annual Sewer & Water Municipal
survey in the February issue will provide more insight.
Further, the EPA is pursuing an aggressive approach, especially
with older cities, to bring those population centers into
compliance with federal standards. Thus, consent decrees are
accelerating, especially in cities struggling with sanitary sewer
overflows. Many metro areas - and even smaller cities - are
working feverously to escape the wrath of the EPA and modernize
their sewer and water systems to meet demand.
Remembering Irv
The underground infrastructure industry lost another amazing
alumnus in early December when Irvin Gemora passed away.
It seems like that has been happening all too much these days
with industry stalwarts, but perhaps I'm just more sensitive as
I, too, grow older.
Regardless, Irvin (or Irv, as he much preferred) was a man
of remarkable vision with the ability to motivate and communicate.
Irv became a good friend in the mid-1990s and was one
of the people who persuaded me that the then " good-old-boyclub "
reputation of NASSCO was changing, and its mission deserved
our interest and support. He was absolutely correct and
in fact, became a major driver of the NASSCO evolution into
the top force in the sewer rehabilitation market today.
There are always moments in time that are considered critical.
In my mind, 2002 was one of those moments. Then NASSCO
Executive Director Michael Burkhard had done an amazing job
of getting NASSCO back on its financial feet and had even come
up with the concept for the Pipeline Assessment & Certification
Program (PACP). But Mike's interests lay elsewhere, which
opened the door for Irv to step in as executive director.
NASSCO was on the brink of greatness. But a clear vision
of what the future could be, sense of direction, careful planning
and a strong force of will would be necessary. Irv was the perfect
man for the job. Through his leadership, NASSCO built the
PACP program into the industry standard that it is today and
opened countless other opportunities for NASSCO to become
a mighty industry force. UI
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Underground Infrastructure - January 2023

Table of Contents for the Digital Edition of Underground Infrastructure - January 2023
