The Build America, Buy America program, established under the Infrastructure Investment and Jobs Act, is reshaping strategic considerations for companies serving the U.S. water industry. Central to its execution are reinforced compliance requirements initially introduced with the IIJA’s US$55 billion allocation for drinking water and wastewater projects. BABA mandates that iron, steel, and a defined portion of construction materials and manufactured goods for federal projects be U.S.-produced. Importantly, these requirements extend beyond the IIJA to all federal funding streams.
Since 2021, BABA’s gradual rollout in the water sector has given companies time to assess the feasibility and costs of compliance. Multinational suppliers with global supply chains have faced significant decisions about investing in domestic manufacturing, while U.S.-based manufacturers are increasingly positioned to capitalize as enforcement intensifies. As the program’s full compliance phase begins, suppliers that have adapted production strategies to meet BABA standards are set to gain a competitive edge in federal infrastructure projects.
In this Research Note:
- BABA compliance tightens, transforming water sector supply chains and costs
- Varied compliance strategies highlight market leadership in water sector
- BABA-driven reshoring and the rebirth of U.S. manufacturing in the water sector
