With over $1.2 trillion committed through the Bipartisan Infrastructure Law, the United States is undergoing one of the largest infrastructure investment waves in decades. According to the U.S. Department of Transportation, more than $300 billion is allocated to modernize roads, water systems, energy grids, and broadband internet.

A growing share of this work involves underground utilities. A 2023 report by Global Industry Analysts Inc. estimates that the Horizontal Directional Drilling (HDD) market in the U.S. will surpass $4.9 billion by 2027, growing at an annual rate of over 6.2%. The surge is driven by urban development, environmental regulations, and a national push to expand fiber-optic broadband to rural areas.

HDD has become the method of choice for many contractors. Unlike traditional trenching, HDD allows for precise drilling beneath roads, sidewalks, rivers, and buildings without open excavation. The result: less traffic disruption, faster project completion, and lower surface restoration costs.

“For cities, HDD is a win,” says utility contractor David Goldstein from New Jersey. “You can replace aging water mains, lay fiber, or run electric lines without tearing up the street. It’s efficient and clean.”

Goldstein says his team used to handle just a few HDD projects per year. Now, they drill every week.

“We’re bidding constantly. Demand has exploded.”

But with that growth comes pressure to stay profitable. HDD rigs are capital-intensive, but contractors say the real financial bottleneck often lies elsewhere — in the tracking systems used to guide the drill underground.

These systems, which rely on electromagnetic sondes and receivers, are essential for safety and accuracy. A typical OEM transmitter can cost $2,000–$5,000 per unit, and replacements are frequent due to wear and tear.

For small and mid-sized contractors, that’s a serious cost burden — especially as job volume rises.

The Real Cost Beneath the Surface: Tracking Equipment

In horizontal directional drilling, precision isn’t optional — it’s critical. Crews use sondes, small transmitters inside the drill head, to send out location signals during drilling. Surface receivers pick up these signals and display the drill’s depth, angle, and position in real time. A weak or inaccurate signal can derail a job, damage nearby utilities, and lead to costly delays or rework.

“Tracking gear has to be precise and reliable — no exceptions,” says David Goldstein, a utility contractor in New Jersey. “But buying new sondes from OEMs like DigiTrak® or Subsite®? You’re looking at $2,000 to $5,000 each.”

That price adds up fast — especially for smaller contractors working multiple jobs per week. As HDD work increases, so does equipment turnover. Sonde failures, damage in the field, and the need for backups have pushed many contractors to look beyond original manufacturers.

Refurbished and aftermarket sondes have become a practical alternative. These tools are fully compatible with popular tracking systems, including DigiTrak® Mark III, IV, SE, F2, F5, and Subsite® Trackers. They offer the same performance in real-world drilling — often at 30–60% lower cost.

One of the suppliers filling this niche is UCGhdd, a Brooklyn-based company that provides a wide selection of refurbished and compatible sondes for DigiTrak®, Subsite®, and Ditch Witch® systems.

“Our customers are small contractors who need reliable gear, fast turnaround, and fair pricing,” says a UCGhdd spokesperson. “They can’t afford downtime or overpriced parts. We help them stay on schedule and under budget.”

For Moishe K., a project manager working throughout the tri-state area, switching to aftermarket sondes changed everything.

“We used to baby our equipment because replacements were so expensive. Now we keep spares in the truck,” he says. “If one goes down, we swap it out and keep going. It’s a huge stress relief.”

As more contractors adopt HDD and take on high-volume utility work, affordable and reliable tracking tools are becoming a cornerstone of competitive bidding and long-term profitability.

The Road Ahead

The HDD market is set to keep growing. According to a 2024 report by MarketsandMarkets, the global horizontal directional drilling industry will reach $14.2 billion by 2029, up from $9.1 billion in 2024 — a compound annual growth rate (CAGR) of 9.4%. The North American market remains the largest contributor, driven by federal infrastructure spending, urban utility upgrades, and the expansion of 5G and fiber-optic networks.

In the U.S., more than $65 billion has been allocated to expand broadband under the Infrastructure Investment and Jobs Act (IIJA). Many of these projects require trenchless installation, especially in dense urban or sensitive environmental zones. The EPA also estimates that over $470 billion will be needed to modernize water infrastructure by 2035 — much of it underground.

Trenchless methods like HDD are key to completing these upgrades without disrupting traffic, property, or natural habitats. But for contractors, growth brings its own pressure: more jobs, tighter deadlines, and rising costs.

To stay competitive, contractors are rethinking how they source tools — especially mission-critical items like rigs, sondes, and locators. Buying everything new from OEMs can eat into margins. That’s why more firms now rely on aftermarket and refurbished equipment that performs well in the field and keeps costs under control.

“In the end, it’s about getting the job done right,” says David Goldstein. “If the equipment works, and it saves money, that’s what matters.”