A Tale of Two Cities starts with the famous line, “It was the best of times, it was the worst of times.” Charles Dickens’ book was about a different time and place, but we could say the same thing about the water industry today. We face many challenges but there are also significant opportunities. Let’s look at both.
First, the Worst
Inflation. As I write this, U.S. inflation jumped 8.5 percent in the last year, the highest since 1981, and the Producer Price Index reached an all-time high. For an industry accustomed to decades of low, single-digit inflation, today’s economy poses a huge challenge.
Supply Chain. At a 2021 conference, I heard a utility leader speak about difficult supply chain challenges and the item he was having trouble purchasing was shovels. Many thought he’d say electronics. However, even the modest shovel is critical to our industry.
The Disappearing and Changing Workforce. For years, we’ve read about the “silver tsunami” in our industry; it’s here! In fact, the pandemic accelerated and amplified it. In the years to come, we’ll be working with new faces — and often fewer faces — as we seek to fill positions vacated during this time.
Now, the Best
Of course, not everything in 2022 is bad. We certainly have our opportunities and positive trends.
Infrastructure Funding. The Infrastructure Investment and Jobs Act (IIJA) will provide $55 billion for water projects over the next five years, representing a huge opportunity. To show the value of the IIJA, we should create “data ready projects” to measure and assess its impact on factors like equity, service, and asset reliability. Experience tells us that more projects mean higher bid costs as contractors struggle with high demand. Utilities should consider combining multiple smaller projects into a single project to achieve economies of scale and minimize overall bid inflation.
The Trend Toward One Water. In my home state, our association recently changed its brand from North Carolina AWWA-WEA to NC One Water. The trend to remove the separation between water and wastewater teams is growing. For example, one large customer recently viewed their investment in an AMI network as more than just a water project, embracing a more holistic view of data across the water cycle. This trend can only help maximize our return on infrastructure investment and improve service to customers.
Simple to Use Solutions That Are Anything But. Any smartphone user knows phones are complex, but manufacturers have learned to simplify them to just a few buttons. Technology providers increasingly view the user experience as a central part of their solutions. The trend toward more intuitive solutions could also help utilities on-board and engage the new workforce.
2022 and Beyond
Like generations before us, we often focus on the negative. However, while 2022 may often feel like the worst of times, it might just be the best of times for the water industry. WW
About the Author: Chris Thomson is director of strategic initiatives at Xylem Inc. and a member of the Water and Wastewater Equipment Manufacturers Association (WWEMA). He also serves on the Board of Directors and is a member of the Association’s Legislative & Regulatory Committee. WWEMA is a non-profit trade association formed in 1908 to represent water and wastewater technology manufacturers and related service providers. WWEMA is made up of many of the most prominent and influential companies in the industry who are working together to shape the future of water and wastewater technology in the U.S. and around the world. For more information about WWEMA, visit www.wwema.org.
Published in WaterWorld magazine, June 2022.
