NAICS 237110 Quarterly Industry Report
Water and Sewer Line and Related Structures Construction
Comprehensive industry research for valuation professionals, business owners, buyers, and lenders
NAICS Code: 237110Sector: Construction (23)Updated: Q1 2026
About This Report
This industry profile for Water and Sewer Line Construction (NAICS 237110) draws on data from the U.S. Census Bureau[6], EPA[7], Bureau of Labor Statistics[10], and SBA size standards database[8]. Published by Fair Market Value and updated quarterly, it provides valuation professionals, utility construction analysts, and infrastructure investors with current market data. All quantitative claims are sourced to publicly verifiable databases.
Industry Snapshot
Key metrics for the water and sewer line and related structures construction industry.
Industry Definition & Overview
Water and Sewer Line and Related Structures Construction (NAICS 237110) encompasses establishments primarily engaged in the construction of water and sewer lines, mains, pumping stations, treatment plants, and storage tanks per the U.S. Census Bureau[5]. Work performed includes new construction, reconstruction, rehabilitation, and repairs. All structures integral to water and sewer networks are covered, including distribution lines, storm sewers, fire hydrants, irrigation systems, sewage disposal plants, and water treatment facilities.
Roughly 7,414 firms employ 146,957 workers generating $68 billion in revenue with $11.8 billion in annual payroll per Census Bureau[6] economic survey data. Municipal water and wastewater systems represent the primary customer base, with EPA estimating $625 billion in drinking water infrastructure needs over 20 years per the EPA[7] Drinking Water Infrastructure Needs Survey. The Bipartisan Infrastructure Law allocated $55 billion for water infrastructure including lead service line replacement, PFAS treatment, and aging pipe rehabilitation. Contractors range from small local excavation firms to large national utility construction companies.
Per the SBA Table of Size Standards[8], the size standard is $45 million in average annual receipts. Clean Water Act and Safe Drinking Water Act establish federal water quality standards that drive construction demand for treatment plant upgrades and collection system improvements. OSHA[9] construction safety standards under 29 CFR 1926 govern all job sites, with trench safety (Subpart P) and confined space entry representing the highest-risk activities in underground utility construction. State plumbing codes and utility construction standards govern pipe materials, installation methods, and inspection requirements. EPA National Pollutant Discharge Elimination System permits apply to stormwater discharges from construction sites and completed treatment facilities.
What's Included in This Industry
- Water main and distribution line installation
- Sanitary sewer line and collection system construction
- Storm sewer and drainage system construction
- Water treatment plant construction and upgrades
- Wastewater treatment plant construction and expansion
- Pumping station and lift station construction
- Water storage tank and reservoir construction
- Fire hydrant installation and replacement
- Irrigation system construction and rehabilitation
- Trenchless pipe rehabilitation and replacement
NAICS Classification Hierarchy
| Level | Description | Code |
|---|---|---|
| Sector | Construction | 23 |
| Subsector | Heavy and Civil Engineering Construction | 237 |
| Industry Group | Utility System Construction | 2371 |
| NAICS Industry | Water and Sewer Line and Related Structures Construction | 23711 |
| National Industry | Water and Sewer Line and Related Structures Construction | 237110 |
Related NAICS Codes
| Code | Description | Relationship |
|---|---|---|
| 237120 | Oil and Gas Pipeline and Related Structures Construction | Oil and Gas Pipeline Construction uses similar trenching, excavation, and pipe-laying equipment and techniques for energy pipelines, with many utility contractors performing both water/sewer and oil/gas pipeline work depending on regional market demand and project availability |
| 237130 | Power and Communication Line and Related Structures Construction | Power and Communication Line Construction performs underground conduit and duct bank installation that often runs alongside water and sewer lines in utility corridors, with joint trench construction coordinating multiple utility installations in the same excavation to reduce costs and disruption |
| 237310 | Highway, Street, and Bridge Construction | Highway, Street, and Bridge Construction coordinates road work with water and sewer line installation, with underground utility construction frequently preceding or accompanying road building projects and requiring traffic control and pavement restoration as part of the utility construction scope |
| 237210 | Land Subdivision | Land Subdivision requires water main extension, sewer line installation, and storm drainage construction before residential lots can receive building permits, with subdivision developers subcontracting water and sewer work to utility construction firms in this classification |
| 221310 | Water Supply and Irrigation Systems | Water Supply and Irrigation Systems own and operate the water distribution infrastructure that contractors in this classification build and maintain, with utility operators commissioning new construction, rehabilitation, and emergency repair projects to maintain system capacity and compliance |
Geographic Concentration
Top states by share of national establishments.
| # | State | % Est. | Total Est. |
|---|---|---|---|
| 1 | Texas | 10.9% | 1,181 |
| 2 | California | 8.1% | 881 |
| 3 | Florida | 7.0% | 760 |
| 4 | North Carolina | 3.9% | 421 |
| 5 | Georgia | 3.5% | 380 |
| 6 | New York | 3.1% | 337 |
| 7 | Michigan | 3.0% | 327 |
| 8 | Illinois | 2.9% | 315 |
| 9 | Virginia | 2.8% | 301 |
| 10 | Colorado | 2.7% | 288 |
% Of Establishments
0%
11%
Source: County Business Patterns, U.S. Census Bureau[3]
SBA Lending Summary
760
Total SBA Loans
$367.2M
Total Loan Volume
$483K
Average Loan Size
10 yrs
Average Loan Term
10.03%
Average Interest Rate
7,320
Jobs Supported
Source: SBA 7(a) Program Data, U.S. Small Business Administration — FY 2025[4]
Key Insight: Per the SBA Table of Size Standards[8], Water and Sewer Line Construction (NAICS 237110) has a size standard of $45 million in average annual receipts for federal contracting purposes. SBA lending programs[11] support equipment acquisition, bonding capacity, and business expansion for qualifying water and sewer construction firms. Eligible businesses can access SBA 7(a) loans[12] for working capital, equipment, and acquisition financing, while 504 loans[13] support major fixed-asset purchases including real estate and heavy machinery.
Top SBA Lenders
| # | Lender | Loans | Volume | Avg Loan |
|---|---|---|---|---|
| 1 | Pathward National Association | 16 | $33.7M | $2.1M |
| 2 | T Bank, National Association | 8 | $32.7M | $4.1M |
| 3 | First Bank & Trust | 8 | $28.0M | $3.5M |
| 4 | Shoreham Bank | 8 | $22.4M | $2.8M |
| 5 | Cadence Bank | 40 | $19.9M | $498K |
Frequently Asked Questions
Common questions about this industry.
What is the NAICS code for water and sewer construction?
NAICS 237110 covers water and sewer line construction including mains, treatment plants, pumping stations, storm sewers, and fire hydrants per the U.S. Census Bureau[5].
What is the SBA size standard for water/sewer construction?
The SBA size standard[8] is $45 million in average annual receipts, determining eligibility for federal small business contracting programs and SBA lending products.
How large is the water/sewer construction industry?
Roughly 7,414 firms employ 146,957 workers generating $68 billion in revenue per Census Bureau[6] economic survey data, with industry growth driven by aging infrastructure replacement and regulatory compliance upgrades.
How much does the U.S. need to invest in water infrastructure?
EPA[7] estimates $625 billion in drinking water infrastructure needs over 20 years per the Drinking Water Infrastructure Needs Survey, with the Bipartisan Infrastructure Law allocating $55 billion for water infrastructure including lead pipe replacement and PFAS treatment.
What are the biggest safety risks in water/sewer construction?
OSHA[9] trench safety standards under 29 CFR 1926 Subpart P and confined space entry requirements represent the highest-risk activities, with cave-in fatalities and atmospheric hazards in manholes and vaults posing the greatest worker safety threats in underground utility construction.
What environmental laws drive construction demand?
Clean Water Act and Safe Drinking Water Act establish federal water quality standards per EPA[7] regulatory authority that drive construction demand for treatment plant upgrades, collection system rehabilitation, and distribution system improvements to meet increasingly strict discharge and drinking water limits.
What is trenchless pipe rehabilitation?
Trenchless methods including cured-in-place pipe lining, pipe bursting, and horizontal directional drilling allow pipeline rehabilitation without full open-cut excavation per industry technology standards, reducing surface disruption, traffic impacts, and restoration costs compared to traditional dig-and-replace construction.
What permits apply to water/sewer construction projects?
EPA[7] National Pollutant Discharge Elimination System permits apply to stormwater discharges from construction sites disturbing one or more acres, with additional state and local permits required for utility construction in public rights-of-way and connections to existing water and sewer systems.
Sources & References
Government datasets and editorial sources used in this report.
- [1]U.S. Bureau of Labor Statistics, Quarterly Census of Employment and Wages bls.gov
- [2]U.S. Census Bureau, Economic Census census.gov
- [3]U.S. Census Bureau, County Business Patterns census.gov
- [4]U.S. Small Business Administration, SBA 7(a) Loan Program Data data.sba.gov
- [5]U.S. Census Bureau census.gov
- [6]Census Bureau data.census.gov
- [7]EPA epa.gov
- [8]SBA Table of Size Standards sba.gov
- [9]OSHA osha.gov
- [10]Bureau of Labor Statistics bls.gov
- [11]SBA lending programs sba.gov
- [12]SBA 7(a) loans sba.gov
- [13]504 loans sba.gov
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