ACE / AWWA Trade Show Takeaways: Solid Municipal Demand

Research evidence excerpt

ACE / AWWA Trade Show Takeaways: Solid Municipal Demand

USA | Multi-Industrials EquityJuneResearch23, 2026

ACE / AWWA Trade Show Takeaways: Solid

Municipal Demand

We attended the AWWA Annual Conference & Exposition in Washington, DC,

where we met with BMI, PNR, VLTO, WTS, XYL, and other industry players

such as Kamstrup, Diehl, and Neptune. Overall, participants highlighted resilient

demand among water utilities, with a solid project pipeline and no signs

of slowdown. Additionally, there is a clear shift toward integrated analytic

solutions to help utilities improve capex decisions and reduce water loss.

Municipal Spending Healthy with No Evidence of Slowdown. The key takeaway was that municipal

water end-markets remain healthy despite noise around federal funding, with most companies

pointing to MSD growth. Industry participants noted that only ~20% of IIJA funding has been

disbursed, while utilities continue to benefit from SRF, record municipal bond issuance, and

private capital, reinforcing a multi-year funding backdrop. Private capital is increasingly stepping in,

including hyperscaler-driven investment. Given the mission-critical nature of water infrastructure

and decades of underinvestment, spending continues to be driven by system needs vs macro

conditions. Additionally, regulatory compliance is often non-discretionary, particularly for VLTO and

WTS, which are exposed to testing, monitoring, and consumables.

Shift toward Software and Analytics. A major theme throughout the show was the growing

importance of software and analyzing data. Utilities increasingly want a unified platform that can

connect AMI, leak detection, pressure monitoring, SCADA, water quality, and other operational

datasets to drive better resource allocation and decision-making.