Question-and-Answer Session
Operator
(Operator Instructions) Our first question comes from Steven Fisher – UBS.
Steven Fisher – UBS
Wondering what you’ve heard regarding the proposed economic stimulus packages as it relates to water and how you might expect to benefit?
Andrew B. Schmitt
Our view on the infrastructure related packages, we think water will get its share Steven. I can’t tell you that we have any better information than anyone else relative to how that will come out, over what time frame or how much will be there. We all know the water and particularly waste water infrastructure, certainly if you’re going to spend money, that’s an area that needs addressing. We think the Corp of Engineers has pointed that out pretty emphatically to Congress through the years.
I would think that piece would be prominent and given the municipal market is as tough a place to raise money as all markets are, it seems to be a good time for the government to step in and do more in that area and hopefully won’t put caveats on those funds given the matching funds that’s going to restrict the state’s municipalities from being able to participate to the extent that they would like to. It is clearly and area where we expect to benefit.
Now, when we pull back and realistically look at the time frame for a new administration to get in place, for the process to go through Congress, we would not look to see that type of infrastructure spending benefit us for a year. I just don’t think it gets out there quick enough, gets in projects, municipalities line up their money, they bid the projects. You know the process Steve. I mean it’s not something that happens instantly.
It could be a nice bridge for us given the backlog in these water businesses that would give us a nice buffer because in the absence of that you would expect the rental related products and infrastructure to hold up, stand up better next year. But then the bigger question would be the following year. If that type of timing worked out where we saw more government sponsored spending which we really haven’t seen as much through the years in water or waste water. A lot of regulatory driven spending but not a lot in terms of just government infrastructure spending, that could turn out to be pretty fortuitous for us timing wise.
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