Home construction has always been a strong end market for PVC pipe. But as construction slows because of higher interest rates, pipe makers are seeing help ahead in the form of federal infrastructure spending.
A federal infrastructure spending bill has set aside $55 billion for drinking water and wastewater infrastructure improvements.
"Federal infrastructure spending will soften any slowdown [from construction]," Vinyl Institute CEO Ned Monroe told PN's Frank Esposito. "Improving the nation's water infrastructure is a focus for the federal government over the next five years, and PVC pipe will play a significant role in that effort."
"Pipes inventories are very low," Bruce Hollands, executive director of the Uni-Bell PVC Pipe Association, told PN's Catherine Kavanaugh last month. "The market is booming."
And federal spending will aid the PVC industry beyond pipes, Monroe noted. The recently signed Inflation Reduction Act sets aside money to help develop the electric vehicle industry and infrastructure. That includes charging stations filled with PVC electronics, wiring, connectors and housings.