Jacobs, one of the leading engineering firms in water, announced plans to spinout its Critical Mission Solutions business unit. With this move, the company streamlines their business focus, including on water, and boosts share price in the wake of higher margins and growth. 

On 9 May, Jacobs announced plans to separate its CMS, or Critical Mission Solutions, business. In doing so, it aims to carve out two businesses that are demonstrating different margins and growth rates. 

CMS, which generated approximately $4.4 billion in revenue in 2022 by providing technical consulting, applied science research, training, intelligent asset management and program management services to federal government agencies. This includes space, national security, nuclear remediation and 5G technology. 

The remaining Jacobs business, which generated approximately $10.5 billion in 2022, will provide consulting, planning, engineering, design and program management solutions to state, local and national governments and private sector clients, globally. This includes water and environment, energy transition, transportation and advanced manufacturing sectors.

Reese Tisdale talks to Greg Goodwin about his recent research and perspectives on engineering firms and their competitive strategies in water.

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The semiconductor market is a buzz with activity as high demand—primarily driven by consumer electronics and automotive sectors—and policy, namely the U.S. and the EU Chips Acts, come together to create a favorable environment for billion dollar investments for new semiconductor manufacturing plants.

In the wake of global supply chain bottlenecks, semiconductor manufacturers are accelerating production to meet chip quotas. The US$573 billion semiconductor industry is expected to exceed US$1 trillion by 2030, primarily driven by soaring demand from the consumer electronics and automotive sectors. 

Bluefield's water experts discuss where the investments are happening, globally, and what does it mean for water usage and water sector opportunities.

Reese Tisdale speaks with Bluefield's Amber Walsh about the policy impacts on water management for semiconductor facilities.

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Bluefield's water experts discuss the European Chemical Agency's (ECHA) recent launch of a six-month evaluation to review a proposal for restricting the use of per- and polyfluoroalkyl substances (PFAS). The proposal, submitted by the Netherlands, Germany, Denmark, Sweden, and Norway, is representative of public concerns that are escalating in the EU and applies to both the production and use of PFAS in products, including those that are imported into the European Union. The initiative signals the next step toward tighter regulatory enforcement of these contaminants of emerging concern on the continent. 

Out of Europe, Chloe Meyer joins Reese Tisdale talk about EU policies for PFAS and emerging challenges across the region.

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On 20 March 2023, the U.S. Supreme Court heard oral arguments of Arizona v. Navajo Nation, a dispute over Colorado River water rights. The court’s decision could have significant implications for the water rights of Tribes across the country. Navajo Nation is one of the Indian Health Service (IHS) administrative areas with the greatest need for water and wastewater infrastructure construction and rehabilitation.

Recent federal funding outlays—including the 2021 Infrastructure Investment and Jobs Act (IIJA) and the US$1.7 trillion OMNIBUS bill passed in December 2022— have given the IHS historically high levels of access to federal funding. The allocations aim to address long standing deficiencies in drinking water and sewer infrastructure for tribal communities.

The combination of increased available funding and extreme water stress in the Colorado River basin presents a market opportunity over the next five to eight years through municipal water and sewer construction and rehabilitation projects.

Bluefield's water experts– Reese Tisdale and Greg Goodwin– talk about the scale of federal funds allocated to Indian reservations, the potential impact of pending lawsuits at the Supreme Court, and the impact of declining Colorado River water levels.

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The global water metering market is at an inflection point, as a host of new digitally enabled technologies and business models transform global water utilities’ relationships with their meters and meter providers. Metering vendors face a host of macroeconomic, regulatory, and competitive shifts.

COVID-related supply chain disruptions and component shortages have roiled the sector, delaying projects and new product development even as post-pandemic stimulus funding drives record levels of meter market demand. 

Reese Tisdale talks to Bluefield’s Eric Bindler about competitive trends, notable shifts in the market, and the global water forecast across 45 countries.  

Rest Tisdale is lined by Sr. Research Director Eric Bindler to cover the wide-sweeping digital disruption in the water sector.

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Charlie Suse's year-end analysis of investor owned utilities has revealed a stabilization of M&A activity among IOUs, with a notable decrease in 2022 compared to the previous year. During this time period, Texas has emerged as a major hub for such acquisitions, and there was a significant rise in fair market value (FMV) deals, indicating a streamlining of the regulatory process.

Key questions asked, include:

Reese Tisdale is joined by Private Water Analyst Charlie Suse to break down investor-owned utility M&A trends and opportunities in the water sector.

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Bluefield's Amber Walsh has been examining corporate sustainability, specifically focusing on how companies minimize their environmental impact, particularly in relation to their water footprint. While climate and greenhouse gas (GHG) emissions have traditionally been the primary focus of sustainability, water issues are gaining attention due to their financial implications and public pressure, which can affect brand perception. Policy mandates, such as those requiring reporting, are seen as a driving force for companies to address water-related risks.

The new EU Corporate Sustainability Reporting Directive (CSRD) is discussed, highlighting its significance in increasing the transparency of corporate environmental footprints. This directive expands the scope of companies subject to sustainability reporting and standardizes the process across the EU.

The discussion also touched on how increased reporting leads to more water management projects and opportunities for third-party providers. It was noted that, sector-wise, there are variations in water usage trends, with some industries and regions showing reductions while others increase, influenced by factors like energy source transitions.

Reese Tisdale is joined by Bluefield's Amber Walsh and Ethan Edwards to discuss the potential impacts.

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On 24 January 2023, US-based Xylem Inc. and Evoqua announced an agreement in which Xylem will acquire Evoqua in an all-stock transaction for an enterprise value of approximately US$7.5 billion. The combination unlocks potential growth opportunities for Xylem in industrial markets and in water quality, both of which are stronger markets for Evoqua.  

Pure-play water deals of this size in the water sector are infrequent, at best. Bluefield’s water experts break down the terms of the deal and analyze the benefits for Xylem, possible market signals, and integration challenges for employees and customers.   

Bluefield’s Reese Tisdale, Keith Hays, and Ethan Edwards walk through the details, including competitive impacts and reasons for the deal.  

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