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It seems appropriate that our Aging Infrastructure issue coincides with a recent influx of information on municipalities and other organizations (finally) feeling the benefits of the American Recovery and Reinvestment Act. While the immediate impact has certainly not yet come close to the projected promise of significant economic recuperation, at least we have begun to see some activity.

The $787 billion program promised to create four million jobs and allowed for approximately $150 billion in emergency funding for public works infrastructure, with more than $7 billion earmarked for drinking water and wastewater projects.

One of the biggest concerns among pump and motor manufacturers continues to be the controversial “Buy American” clause. John Engman of Emerson Motors says shipping to the site is the critical factor contributing to the confusion over the clause’s compliance requirements. “You may be buying a pump from an American manufacturer, but if the vertical pump is shipped in two sections (pump and motor), then both items must meet the criteria,” he explains.

The paperwork required to ask for the money, as well as the red tape involved with receiving it, has contributed to the confusion and political backlog.

This month we introduced a new online blog and monthly update in print from consultant David Courtney that should help us sort it all out. He uses several tools to closely monitor stimulus activity that affects our industry and post lists of projects in the works. Visit his blog frequently for updates and continue to read Pumps & Systems for vital news and information regarding the ongoing impact of the stimulus package. Be sure to comment about projects for which you would like more information and continue to let us know if you receive orders as a direct result of a stimulus-funded project.

Our October issue features in-depth commentary from ITT’s Colin Sabol on aging infrastructure in municipalities with specific evidence of the impact on our industry and insight on possible solutions.

On the tradeshow front, I just returned from the ISA Expo in Houston where I got a first-hand look at some amazing new industry technology, which will be featured in future issues of the magazine. The Pumps & Systems team will be on the road next week at WEFTEC in Orlando. Visit us at Booth #2851.

It was not a shocking newsflash when U.S. Vice President Joseph Biden acknowledged in a recent CNN report (July 6, 2009) that the $787 billion economic stimulus program has not yet provided the positive impact originally predicted by the White House. “We misread how bad the economy was,” Biden told CNN correspondent Julian E. Zelizer.

One big criticism is that the stimulus plans were unclear until after the bill was passed and that implementation has been flawed, according to the CNN report. Only a small percentage of the funds have been spent.

The biggest concern for the pump industry, according to experts I’ve spoken with directly, is the Buy American clause. WWEMA Chairman Dave Angelo stated in his association’s March/April 2009 newsletter that the big question and the source of much confusion is what does “produced in the U.S.” really mean? According to the Office of Management and Budget’s latest guidelines, a manufactured good produced in the United States is one that has been “processed into a specific form or shape; or combined with other raw material to create a material that has different properties than the properties of the individual raw materials.”

Angelo says, “Now, doesn’t that clear up the confusion?”

WWEMA has fought to keep grant money out of the equation in order to protect manufacturers that produce high quality products and know how to offer value. Angelo insists that Federal handouts have never been a good solution. “Our industry needs to move away from reliance on the federal government and become more self reliant through full cost of service rates,” he said. “While no one wants to pay more for services, necessity does drive innovation. Paying for the full cost of water will certainly create awareness with the general public and that will ultimately drive the overall costs down either through more productive use of water or through innovation.”

Pumps & Systems will continue to cover this issue, and we hope to soon find positive news to share. Look for the September issue for a report on a project partially funded by stimulus money! The October issue will feature a special section on our aging infrastructure.

Please give us some feedback on how the stimulus package is affecting your business.

In a rare move, U.S. President Barack Obama went to Capitol Hill on Wednesday to personally pitch his stimulus plan to House Republicans. They were not impressed.

The plan passed with no problem (244-188). However, not one single Republican gave support to the President’s proposal, some of them stating for the record that they felt the now $819 billion plan contains too much spending and not enough tax cuts.

It is a vote that speaks volumes to the political challenges that await the new President regarding the economy and other issues.

Monday, the debate moves to the Senate and the tax relief provisions of the bill are likely to grow enough to pick up the Republican votes the President has been courting so aggressively.

White House speakers emphasize this is just step one, and indicate that the President is not discouraged. He says he knows it will take longer than a few days to effect change and the Speaker of the House said that “you can’t report the final score of the game when you’re only in the third inning.”

How this impacts the pump industry is still unknown. In the February issue of Pumps & Systems we reported speculation from industry experts and executive association leaders on how a huge portion of this package could dramatically impact infrastructure and the water and wastewater sectors of our industry.  Let us know what you think of these recent developments, and we will continue to give you timely reports.

In our February issue, we feature the impact the new presidential administration’s stimulus package will have on the pump industry, particularly with regard to infrastructure rebuilding in the water and wastewater sectors.

We talked with several “in the loop” industry experts and association leaders who all agree that this package can only mean positive things for pump community.

At press time, Barack Obama had not yet been inaugurated and the details of his economic recovery plan were not public. Therefore, the article is pure speculation—although highly reliable speculation. We are proud to bring you this information.

Here is a taste of what you’ll read in the article:

Facing perhaps the most desolate financial outlook since World War II, U.S. President Barack Obama is expected to unveil an economic-recovery package that could include large investments in energy, education, infrastructure and health care. The amount of stimulus and how it affects the pump industry is yet to be determined.

“As of this time, it is anyone’s guess how big the stimulus package will be, but it will likely be of historic proportion from all the chatter we are hearing on Capitol Hill and in the press—anywhere in the range of $500 billion up to a trillion,” says Dawn Kristof Champney, president of the Water & Wastewater Equipment Manufacturers Association, Inc. (WWEMA). “The only real number I have heard to date is from Congressman James Oberstar who heads the House Transportation and Infrastructure Committee. He is recommending that $9 to $12 billion be included for water and wastewater infrastructure projects.”

Some sources report the package could be upward of $775 billion.

Thanks to pump-zone.com, we have the opportunity to update you daily online and continue to provide more in-depth coverage in print. We plan to cover the stimulus package story closely throughout the year through both mediums. Check my blog daily for timely reports on the progress of the package.

Do you have opinions, theories or further speculation about this package? If so, we have an excellent new forum—PumpConnect—where our readers can blog, network and discuss this and other issues with friends in the industry. We invite you to join us on this completely user-generated space created just for you!  It is the perfect place to visit daily, express your opinions, network with others in the pump community and debate critical industry issues.