$245 Billion Forecast for North American Project Spending in 2008

Industrial Info Resources is forecasting a 5.55% increase in total investment value (TIV) for North American industrial projects in 2008 when compared with 2007, as detailed in the recently released 2008 Global Industrial Outlook.

The forecast is based on extensive research identifying thousands of projects scheduled to begin construction in 2008. These projects are in various stages of development that include pre-planning, design, permitting, funding submittal, capital approval and construction. As the year progresses, there is a natural adjustment or fallout that occurs as projects are added, delayed, postponed or canceled. To forecast this adjustment, Industrial Info utilizes a Confidence Factor based on historical trends to determine the fallout rate. This forward-looking approach provides insight into future spending activity, trends and performance projections.

For North America, more than 5,300 major projects with a TIV of $401 billion have been identified to begin construction in 2008. Industrial Info is forecasting that about $245 billion of that total will actually take place by the end of 2008 after adjustments are made from project fallouts because of cancellations and schedule changes. Using a five-year Confidence Factor based on industry trends, the forecasted 2008 value represents a $13.64 billion increase or 5.55% growth when compared with 2007's actual spending.

The Confidence Factor is the percent of change in TIV from the initial forecast to the actual number. In some cases, the percent could be positive growth (100%+), and in others it could be negative, where the number of new projects will not outweigh the reduction from project cancellations and delays.

Source — Industrial Info Resources (Sugar Land, Texas)

EPA Reports on Clean Water Infrastructure Needs

A new report from the EPA estimates $202.5 billion is the nationwide capital investment needed to control wastewater pollution for up to a 20-year period. Recently delivered to Congress, the 2004 Clean Watersheds Needs Survey summarizes the results of the agency's 14th national survey on the needs of publicly owned wastewater treatment works. The estimate includes $134.4 billion for wastewater treatment and collection systems, $54.8 billion for combined sewer overflow corrections, and $9.0 billion for stormwater management.

Communities across the country face challenges in sustaining their water infrastructure. EPA is working with states, tribes, utilities, and other partners to reduce the demand on infrastructure through improved asset management, improved technology, water efficiency, and watershed-based decision making, and is working with Congress to enact the Administration's Water Enterprise Bond proposal.

The report provides information to help the nation make informed decisions about pollution control needs necessary to meet the environmental and human health objectives of the Clean Water Act. The figures represent documented wastewater investment needs, but do not account for expected investment and revenues. Wastewater treatment utilities pay for infrastructure using revenue from rates charged to customers and may finance large projects using loans or bonds. State and federal funding programs, such as EPA's Clean Water State Revolving Fund program, are also available to help communities meet their wastewater pollution control needs. The needs in this survey represent a $16.1 billion (8.6%) increase (in constant 2004 dollars) over the 2000 report. The increase in overall national needs is due to a combination of population growth, more protective water quality standards, and aging infrastructure.

Source — EPA

Agricultural Practices in Nine States Contribute Majority of Excessive Nutrients to the Northern Gulf of Mexico

According to new findings in a USGS report, excessive nutrients have resulted in a zone of low dissolved oxygen or hypoxia, caused by the growth of large amounts of algae. This can stress and cause death in bottom-dwelling organisms in the Gulf, and threatens the economic and ecological health of one of the nation's largest and most productive fisheries.

Illinois, Iowa, Indiana, Missouri, Arkansas, Kentucky, Tennessee, Ohio and Mississippi make up only one-third of the 31-state Mississippi River drainage area, but contribute more than 75% of nitrogen and phosphorus to the Gulf.

Corn and soybean cultivation is the largest contributor of nitrogen to the Gulf. Animal manure on pasture and rangelands contributes nearly as much phosphorus as cultivated crops, 37% versus 43%.

The study reports that 66% of nitrogen originates primarily from cultivated crops, mostly corn and soybean, with animal grazing and manure contributing only about 5%. Atmospheric contributions also are important, accounting for 16% of nitrogen.

The USGS findings help fill important gaps in information on sources of phosphorus in the Mississippi River Basin at a time when recognition of phosphorus is expanding as an important contributor to Gulf hypoxia. The joint federal-state Gulf of Mexico Hypoxia Task Force is evaluating recommendations by the Environmental Protection Agency's Science Advisory Board to set reduction targets of at least 45% for both nitrogen and phosphorus in an effort to shrink the size of the hypoxic, or, “dead zone", in half (to 5000 square kilometers) by 2015. States and EPA may therefore need to adopt a dual nutrient management strategy in order to reduce the size of the “dead zone” in the Gulf.

Reservoirs, particularly common in the Tennessee Valley and along the Missouri River, are very effective at removing phosphorus from watersheds in the Mississippi Basin and cause a large reduction in the amount of phosphorus reaching the Gulf. While these findings indicate that phosphorus inputs upstream of reservoirs may have limited impact on Gulf hypoxia, these inputs are known to create water quality issues in the reservoirs themselves.

Delivery of nutrients to the Gulf is highest from watersheds in the central and eastern portions of the Mississippi River Basin that are drained by large, fast flowing rivers with very little natural removal. Nutrient reductions in the Gulf may thereby be more efficiently achieved through nutrient management in watersheds drained by large rivers.

As the study has shown, nutrient issues are complex and therefore a multitude of management approaches are necessary to reduce the nutrient burden flowing in the Mississippi River Basin. Some examples include, attention to the management of animal and crop production, controlling nutrient sources in close proximity to large rivers, and considering reservoir effects on phosphorus.

Source — USGS

ALERT!   SOFTWARE UPDATES

Operator10 v8.16 and Antero v4.09 installs and updates are now available for downloading from our web site.

To download program updates, go to http://www.allmaxsoftware.com/download.php to begin the update process.

To download an evaluation version of Operator10, go to http://www.allmaxsoftware.com/operations.htm and click the "Get Operator10" button on the left hand side of the screen.

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