Customer education, infrastructure modernisation and data analytics will be key to overcome the water challenges posed by aging infrastructure, says Black & Veatch. According to the new Black & Veatch 2017 Strategic Directions: Water Industry Report, "a combination of investment and new business process approaches will also be critical to closing the gap between costs and consumer expectation."
The report also addresses the increasing focus on sustainability, as well as the equally diverse strategies used by industry leaders to achieve it.
In a release, Cindy Wallis-Lage, president of Black & Veatch’s water business said: “Sustainability has different meanings to different segments of the industry. We pursue sustainable water supplies that can serve residents for decades to come. We look for ways to become more economically sustainable by balancing system and user needs with available capital. At the same time, we pursue a kind of social sustainability by engaging consumers as full partners in the pursuit of a supply that’s safe and resilient against weather events and long-term climate change.”
Expanding water asset life
The firm stated in its report that "maintaining or expanding asset life was named the most significant sustainability issue for water utilities."
While this may be the case, survey respondents, however, are showing significant interest in uniting data from once-siloed systems to increase operational efficiencies and inform smarter asset management, adds Black & Veatch.
“Data analytics provide new levels of system intelligence that can address many of the problems hampering sustainable water supplies,” said Mike Orth, executive managing director for the Americas in Black & Veatch’s water business. “Smart meters and new software-based management tools enable us to turn all that data into understandable, useful insights that can address everything from water safety, asset performance and leak detection, to integrated planning and energy efficiency.”
The report also found that financial challenges associated with sustainable systems have shifted, with fewer providers selecting finance-driven topics as their top issues on the path to sustainability.
Black and Veatch says that this could be attributed to the growing confidence in funding from two important channels: the Water Infrastructure Finance and Innovation Act (WIFIA) and greater confidence that government leaders and customers may be more prepared to accept rate increases as a means to pay for critical improvements.
Some of the report's other key findings include:
- Nearly half of survey respondents (47%) indicated that key stakeholders and the public understand the need for proposed rate increases, but still want water providers to “do more with less.”
- Despite increased public scrutiny, when asked about lead and copper corrosion, 55% of water utilities indicated it has not been an issue in their distribution systems.
- The report survey found that integrated planning trends higher among larger communities; the larger the population, the greater the rate of adoption. Of the respondents who already use the approach, 49% are from communities of 2 million people or more, and the acceptance rate drops as the community shrinks in size.
- More than 30% of utilities have indicated plans to implement advanced operational technologies such as advanced metering infrastructure and enterprise asset management.
- Nearly 40% of respondents said data analytics figured into their processes but not operationally; another 20% said data analytics weren’t part of their current processes but figured into strategic planning.
“Proactive, two-way engagement can help convey water’s true value to the community,” said Ralph Eberts, executive managing director for Black & Veatch management consulting.
“This deliberate focus on the customer experience can change cost and water quality perceptions and help secure the rate increases needed to upgrade aging infrastructure.”
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