The recently released Black & Veatch 2013 Strategic Directions in the U.S. Water Industry Report highlights the challenges impacting the water and wastewater industry and reports positive trends in water utilities’ efforts to reduce operating costs, implement energy efficiency, optimization and/or management programs, and an increasing interest in adopting formal asset management programs.

The report, which is based on a survey of 397 water industry professionals, features a top-ten list of industry issues and provides insights on an industry that, despite limited availability of capital and increasing pressure to meet more stringent regulatory requirements, is willing to change how it operates to reduce waste and enhance service delivery to its customers.

Leak detection deserves more prominence in a water utilities’ business agenda.

Reducing non-revenue water and the amount of water main breaks could have a substantial and positive impact on the bottom line and future resource needs. The current rate of replacement is less than 1 percent for most utilities as utilities try to do more with less…with the squeakiest wheel getting the grease.

The data show that there is fair amount of uncertainty regarding the validity of water loss numbers with just over 17% of the respondents noting that they don’t know current levels of non-revenue water. This suggests a lack of strong asset management programs and a direct negative impact on the utilities’ bottom line.

Holistic, systematic and proactive approach to asset management is needed.

The report notes that a holistic, systematic and proactive approach to asset management, which requires three to five years to conceptualize and implement, will lessen the burden of dealing with an infrastructure at the end of its service life and will save precious water resources. Successful programs “enable utilities to manage their assets and operations efficiently, deliver high levels of service to their customers, and drive continuous improvement in people, processes and asset risk evaluation and reduction.” Other key findings of the report include:

• Climate-influenced water supplies, growing service populations, and capital constraints increasingly affect water utility resource management plans and priorities.
• Conservation and environmental stewardship can minimize energy, chemicals and capital resource expenditures. Customer education and outreach are important components of this effort.
• Increases in activity for sustainable energy solutions and a focus on environmental and society benefits are expected.
• Regulation continues to be the primary driver for investment and change.
• Management support from the highest levels of the organization is necessary for any type of wholesale change.

The report also enumerates changes that would help water and wastewater utilities to achieve a stronger financial position and more efficient operations and provides case studies that showcase proactive approaches to integrated and sustainable water supply planning (e.g., Hong Kong, Singapore, WaterOne in Kansas, Scottish Water, Davyhulme Wastewater Treatment Works in England, etc.).

Black & Veatch Report Top 10 Industry Issues:

• Aging water and sewer infrastructure
• Managing capital costs
• Managing operational costs (energy, chemicals, etc.)
• Funding or availability of capital
• Increasing/expanding regulation
• Information technology
• Treatment technology
• Aging workforce
• Water scarcity or availability, and/or conservation
• Water loss (non-revenue water)

About Black & Veatch
Black & Veatch is an employee-owned, global leader in building Critical Human Infrastructure in Energy, Water, Telecommunications and Government Services. Since 1915, we have helped our clients improve the lives of people in over 100 countries through consulting, engineering, construction, operations and program management. Our revenues in 2012 were US$3.3B.