What’s Next for Water?
Takeaways from WEFTEC 2026
What You Should Know
Water Infrastructure Modernization is Still Early Innings
Utilities continue to invest in upgrading aging infrastructure as regulatory requirements, system resilience and operational efficiency become increasingly critical.
Technology is Filling Resource and Talent Scarcity Gaps
Automation and data-driven technologies help to address workforce shortages, improve performance and make more informed operating decisions.
Sustainability That Moves the Needle
From resource recovery and energy efficiency to circular water initiatives, sustainability is a key driver of investment decisions.
Rob Ospalik and Andrew Szyman of Baird Capital’s Industrial Tech & Sustainability team recently attended WEFTEC in New Orleans, Louisiana, the world’s largest annual water quality conference. The event brought together more than 23,000 water professionals, 950+ exhibitors and 125+ educational sessions focused on the future of water and wastewater management. Between keynotes and numerous 1x1 company meetings, WEFTEC showcased the water sector’s increased focus on automation, digital infrastructure, advanced treatment technologies and resource optimization.
These themes are consistent with Baird Capital’s recent successful exit of its investment in Cleanwater1. During Baird Capital’s ownership, Cleanwater1 evolved into a scaled platform through organic growth and four add-on acquisitions, expanding from its municipal roots into broader industrial and commercial water markets. The recent transaction helped frame discussions at WEFTEC around the continued evolution of the water ecosystem and future opportunities in the market. We are looking forward to seeing the company build on their momentum in the next phase of growth.
Here are the team’s takeaways from WEFTEC and what to keep an eye on in the water market:
Water Infrastructure Modernization is Still Early Innings
One of the clearest messages reinforced at WEFTEC was that companies continue to face significant pressure from aging infrastructure, stringent regulatory requirements and growing demand exposing resiliency needs. Panel speakers and companies alike highlighted the need to modernize legacy systems while maintaining day-to-day operations.
As a result, our investment priorities continue to focus on tech that improves operational performance, extends asset life and reduces total lifecycle costs. These regulatory and demographic tailwinds underscore Baird Capital’s conviction that water infrastructure remains an attractive long-term market.
Technology is Filling Resource and Talent Scarcity Gaps
With experienced operators retiring and recruitment becoming more difficult, water systems providers are turning to technologies that improve productivity, automate routine functions and provide greater visibility into system performance.
The most interesting companies we spoke to are enabling smarter infrastructure and mission-critical workflow automation, as well as ensuring safety and flexibility to meet increasing demand from municipalities and industrial end markets alike.
Sustainability That Moves the Needle
WEFTEC’s programming placed significant emphasis on circular economy strategies, reflecting a broad shift within the sector. Utilities are increasingly evaluating projects based on resource recovery, energy efficiency, emissions reduction and long-term environmental impact.
This evolution supports a growing market for technologies that help customers achieve both operational and sustainability objectives, a core focus within Baird Capital’s Industrial Tech & Sustainability thesis.
Looking Ahead
WEFTEC continues to reinforce an idea that Baird Capital has been focused on for years: water infrastructure is becoming increasingly intelligent, automated and sustainability focused. As utilities and industrial customers seek solutions that improve resilience, compliance and operational efficiency, technology providers that deliver measurable ROI are best positioned for growth.
As Baird Capital continues to explore opportunities across the water ecosystem, Becca Schlagenhauf will be attending the upcoming Rethinking Water conference in New York City. Bringing together investors, utility leaders and innovators from across the industry, the event provides a great opportunity to discuss trends, technologies and potential opportunities shaping the future of water. If you’re attending, reach out to connect with Becca.
Are you building in the water space but didn’t get a chance to connect with us at WEFTEC? Contact a member of Baird’s Industrial Tech & Sustainability team.
