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Federal funding and aging infrastructure are driving a wave of water capital work that will continue through the back half of the decade. At the same time, the construction workforce that built and runs these systems is retiring faster than utilities and contractors can replace it.

The result is a tighter labor market in which leadership gaps now compound the existing shortage of skilled field labor. In 2026, water infrastructure hiring is increasingly defined by three pressure points: where demand is concentrated, why leadership talent is falling behind, and which roles now determine project delivery capacity.

Market Pressure: Funding, Regulation, and Retirements Hitting At Once

Key takeaway: Capital work is accelerating on a fixed federal timeline; regulatory deadlines cannot be moved; and 30 to 50% of the water workforce is eligible to retire within the decade. Employers are short on people at every level.

The Funding Push Has A Clock On It

The Bipartisan Infrastructure Law (also called the Infrastructure Investment and Jobs Act, or IIJA) directed $50 billion to water infrastructure over five years. That includes $15 billion for lead service line replacement and $5 billion for emerging contaminants such as PFAS.

Much of that money flows through the State Revolving Fund (SRF) programs that finance drinking water and clean water projects. Annual federal appropriations to the Drinking Water SRF averaged about $6.14 billion under IIJA, up from roughly $1.1 billion in the years immediately prior, nearly six times recent annual levels.

The dollars run on a clock. The supplemental appropriations cover FY2022 through FY2026, which means projects need to be designed, permitted, bid, and under construction within that window to draw the funding down. Regulatory deadlines under the Lead and Copper Rule Revisions, the new PFAS Maximum Contaminant Levels, and active consent decrees add fixed dates that municipalities cannot defer.

Federal equity requirements add another dimension to the hiring picture. Under the Justice40 Initiative, federal agencies are directed to deliver at least 40% of the overall benefits of certain federal investments to disadvantaged communities, and the IIJA itself requires 49% of the supplemental SRF funds to flow to disadvantaged communities as grants or principal forgiveness.

For utility owners and engineering teams running SRF-backed work, that creates a compliance and reporting layer that most capital programs did not carry a decade ago. Program managers and capital planners hired into utility roles now need familiarity with disadvantaged community designation, project benefit tracking, and the reporting expected by state SRF agencies and EPA.

The Need Is Larger Than The Funding

Even with this level of investment, the gap is significant. EPA’s 7th Drinking Water Infrastructure Needs Survey estimated the 20-year national need at $625 billion, a 32% increase over the prior survey. That number does not include wastewater or stormwater needs, which carry their own multi-hundred-billion-dollar tab.

For employers, the takeaway is that demand for water capital work is durable beyond any single funding cycle. Hiring decisions made now will shape execution capacity for the next decade.

The Retirement Wave Hits The Bench Hard

In a 2024 interview, Bruno Pigott, then the EPA’s acting assistant administrator for water, cited the widely cited projection that between 30 and 50% of the water workforce is eligible to retire within the next 5 to 10 years, a figure originally drawn from a 2018 Brookings Institution analysis. AWWA’s 2024 State of the Water Industry Report, drawing on responses from more than 2,400 water professionals, ranks workforce attraction and retention as a top 10 sector challenge. The same survey also flagged cybersecurity preparedness and the need for new digital skills as top-tier workforce concerns tied directly to retirements, which means utilities now compete for talent that did not even appear on org charts a decade ago.

These are projections and survey-based findings rather than hard headcount data, and the picture varies by utility size, region, and ownership structure. The pattern is consistent enough across sources that planning for it is reasonable. Utilities are losing certified operators, licensed engineers, capital planners, and project managers in the same window. Contractors are losing senior estimators, superintendents, and program managers who spent two or three decades learning how water work behaves in the field.

Leadership Shortages Compound, Not Replace, Labor Shortages

The trades and operator shortages in water are real. CDL drivers, underground utility crews, certified treatment plant operators, and licensed electricians remain difficult to find. What has shifted is that the leadership layer above those crews is now thinning at the same time.

Engineering capacity is tightening alongside it. Civil engineers, water and wastewater process engineers, and design managers are all in short supply, particularly on the owner side and inside the consultancies designing IIJA-funded work. Utilities pulling for design and construction management talent compete with EPC firms and consulting engineers for the same pool, and the compensation gap between public and private employers has widened in many regions.

The compounding effect runs through every stage of work. Empty program manager seats stall projects in design or permitting. Thin estimating produces bids that miss on price, scope, or both. Stretched superintendents drag productivity down across the jobs they oversee. Hiring more crews without hiring the right leaders adds friction rather than capacity.

How Owners and Contractors Hire Differently

Key takeaway: Utilities and municipal owners hire for governance and regulatory fluency. Civil contractors and engineering-procurement-construction firms hire for bid performance and field execution. The same candidate is rarely a fit on both sides.

The water sector is not one hiring market. It is at least two:

  • Utility owners and municipal water authorities prioritize candidates who can defend capital deployment to boards, councils, and ratepayer advocates. Regulatory fluency, public communication, and program governance carry weight.
  • Civil contractors and design-build and engineering, procurement, and construction (EPC) firms prioritize candidates who can secure profitable work and deliver it on schedule. Bid integrity, subcontractor management, and field execution are the deciding factors.

Engineering consultancies sit between the two, recruiting design and construction management talent that both sides also want. Regional and union dynamics layer on top of all of it. A search that treats the market as nationally uniform tends to surface the wrong shortlist.

Read More: Hard-to-Fill Construction Roles and How to Recruit for Them

Program Managers: Portfolio Owners

Key takeaway: Program managers own funding, permitting, governance, and risk across a portfolio of projects. They are among the highest-impact hires for utility owners and large contractors.

What The Role Actually Owns

A water program manager runs a slate of projects that share funding sources, regulatory exposure, or operational dependencies. The day-to-day work includes:

  • Funding drawdown: managing SRF and WIFIA (Water Infrastructure Finance and Innovation Act) disbursement schedules so project spend aligns with appropriation timelines
  • Permitting strategy: keeping NPDES discharge permits and state environmental reviews moving in parallel across multiple agencies
  • Procurement sequencing: timing equipment buys and contractor mobilization so they do not collide with field availability
  • Governance reporting: briefing utility boards, city councils, and regulators in language they can act on
  • Risk tracking: flagging schedule, cost, and scope risks across the portfolio before they reach the project level

The Skills That Matter Most

Strong candidates bring three capabilities together: capital planning literacy across multiple funding sources, vendor and contractor coordination experience, and the ability to triage when priorities collide. Comfort with ambiguity matters. Water capital programs are rarely fully scoped at kickoff, and conditions shift as funding moves and priorities rearrange.

Compensation pressure is also real. For directional context:

  • BLS May 2024 medians: Construction managers earned a median annual wage of $106,980, with the top 10% above $176,990. Civil engineers earned a median of $99,590, with the top 10% above $160,990.
  • Where water program managers typically land: At the upper end of those ranges and often above them, particularly at utility owners running large capital programs or at contractors managing multi-site portfolios.
  • Revenue side: AWWA’s 2024 SOTWI found that 73% of utilities surveyed planned to increase rates in 2024, and a meaningful share of that revenue is flowing into staffing. American Water Works Association
  • Market behavior: Counteroffers and retention bonuses for experienced program managers have become common, particularly where utility owners compete with EPC firms for the same people.

Exact compensation movement varies meaningfully by utility size, region, and project mix.

What to Look for in a Program Manager Hire

  • Track record of completed multi-year programs with growing budget responsibility
  • Direct experience drawing funding from more than one source (SRF, WIFIA, ratepayer, bond, federal grant)
  • Held the schedule through scope or leadership changes mid-program
  • References from utility owners, municipal clients, or regulators (not only internal managers)
  • Familiarity with the regulatory environments and jurisdictions in which you operate

Evidence of program delivery outweighs credential stacks.

Estimators: Pricing, Risk, and Bid Integrity

Key takeaway: Estimating has moved closer to risk management. A weak estimate now costs the firm a year of margin, not just one job.

Why Estimating Has Shifted

The estimator is the first person within a contracting firm to see the gap between what the bid documents say and what the field will need. Scope gaps, missing details, unrealistic durations, and aggressive owner assumptions surface first on the estimating side. Strong estimators flag those before they become change orders, claims, or write-downs.

This is judgment work. It requires construction experience, market awareness, and the willingness to push back on sales pressure when a bid is being shaped to win rather than to perform.

Office and Field Fluency Separates Top Estimators

The estimators who consistently deliver bids that are both competitive and executable spend real time in the field. They know:

  • What a crew can actually install in a day on a difficult site
  • Which subcontractors hit their numbers, and which routinely come back with extras
  • Which design conditions tend to surface problems mid-construction
  • How utility conflicts and locate delays affect production rates

Office-only estimators tend to produce numbers that do not survive the first month of construction. Field-only estimators tend to undervalue planning and procurement risk. The hire you want has lived in both worlds.

What to Look for in an Estimating Hire

  • Can talk through their last three bids in operational terms, not just dollar terms
  • Comfortable explaining where an estimate went wrong and what they changed
  • Holds opinions on what they would refuse to bid on and why
  • Shows a track record of bids that performed in execution, not just bids that won
  • Moves easily between subcontractor conversations and owner conversations

Strong estimators have strong points of view. If a candidate cannot defend their numbers under pressure, the bid will not hold up either.

Field Leadership: Production, Sequencing, and Execution

Key takeaway: Field leaders turn the plan into work that’s installed. In a tight labor market, the same crew under stronger field leadership produces noticeably more.

Superintendents and Foremen Run Daily Production

Day-to-day output lives with the superintendent and the foremen below them. The work includes:

  • Sequencing crews and coordinating with inspectors
  • Managing subcontractors and resolving utility conflicts in the right-of-way
  • Adjusting daily plans when the weather, locates, or material deliveries shift
  • Running a disciplined site that protects safety and quality

When this layer is strong, schedules hold. When it is thin or new, schedules slip quietly, and the slippage often does not show up in owner reporting until recovery is no longer possible.

Field Leaders Protect Productivity

In a constrained labor market, the productivity of the labor you do have becomes a lever for profitability. Field leaders who plan a day well, sequence to minimize standing time, and keep crews focused get more out of the same headcount. That edge is real in water work, where utility conflicts, locate delays, and traffic control eat hours off a shift if no one is managing them.

What to Look for in a Field Leadership Hire

  • Multiple completed jobs in water main, treatment, pump station, or conveyance work
  • Familiarity with your geographies, utility owners, and inspection environments
  • Foremen and crews who follow them between jobs (a loyalty signal worth weighing)
  • A clear safety record and a defensible story for how they run a site
  • References from project managers who worked alongside them, not only above them

The people under a field leader will tell you as much as the people above them.

Read More: The Talent Gap in Construction Leadership: How Executive Search Can Close It

Building The Leadership Layer

The substance is consistent across all three roles. Track record on similar work matters more than credentials. Technical judgment built over reps matters more than tenure. Communication that holds up in front of regulators, boards, and crews matters more than the org chart. Execution discipline that protects both schedule and budget matters more than any single methodology.

Hiring for those traits also compounds. Strong leaders develop the next generation of program managers, estimators, and superintendents around them, helping to offset the retirement wave over time.

Building that layer takes more than open postings and reactive recruiting. It requires a deliberate search approach that surfaces candidates who have already done the work, including ones who are not actively on the market.

The Newport Group has placed executive and technical talent across construction, utilities, and infrastructure throughout North America since 1995. Through The SMART Search Process™, our proprietary human-centered executive search program, we help utilities, civil contractors, and infrastructure builders find the program managers, estimators, and field leaders who can advance water capital programs.

Our work in this sector spans heavy civil construction, utility construction, and environmental recruiting.

Call (760) 274-0100 to discuss your hiring priorities, or reach out via our contact page to start a search.

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