Every industry has its unique opportunities and hurdles when entering the U.S. Here we take a quick “deep dive” into the water industry. While the information below is specifically geared towards those in the water sector, any industry that relies on water in its production process can also benefit.
When considering entry into the U.S. market, it is imperative to remember how vast the U.S. is. While the water in most areas of another country with a small geographic footprint might be similar to one another, that is not the case here. The water in Colorado, for example, may be different from that in North Carolina, which is different from that in Florida. This also applies to wastewater. Depending on the number of industrial users and location, the economics of certain technologies may be better or worse. Keep these factors in mind as you prepare to enter the market.
When in doubt, follow the demand. Below are some ideas that could help a team more concretely plan how to tackle the market:
Nonrevenue Water
Nonrevenue water, or water that is treated but is lost through inefficiencies, unfortunately makes up trillions of gallons of lost water in the U.S. A 2012 survey of utilities in the Great Lakes region found that, just through leaks, the utilities lose an estimated 66.5 billion gallons of water per year.[1] According to the Bipartisan Policy Center, there is a” desperate need for more investment to prevent water loss”, since the average system loses up to 16% of water (75% of which should be recoverable.) Those with technologies that can prevent water loss might have an advantage when approaching municipalities.
Old Infrastructure
With nearly 15,000 Publicly Owned Treatment Works (POTWs) that serve hundreds of millions of Americans, there are areas that are sorely in need of upgrades. As an example, Philadelphia has pipes that are upwards of 200 years old. The city also benefits from having a substantial population (resulting in ample tax dollars for funding). Such a combination might be optimal for an update to technology.
The investments being made in wastewater treatment are continually shifting to maintenance (from new construction projects.) “Life cycle costing should be embedded in capital budgeting, and programs for combined sewer overflow, sanitary sewer overflow, and stormwater management need to be permanent.”[2]
Looking for such scenarios around the country could be beneficial for entrepreneurs in the industry.
Water Diversity Within Homes
Since only about 20% of water piped into homes is used for drinking water (with the rest going to bathing, washing clothes, watering lawns, etc.)[3], offering technologies that reuse greywater (water from showers and sinks) or those that divert water intended for uses other than drinking might alleviate the burden to treat all water going into homes to the same high standard. This could result in major cost savings on the municipal level if successful.
The graph below from the US Conference of Mayors shows the increasing investment in water technology. The opportunity is there for the taking.
While the U.S. landscape is vast, finding possibilities within the water sector does not need to be daunting. Approaching the industry as a problem-solver, rather than an opportunity-seeker, could mean the difference between success and frustration.
[1] CNT, Water Loss Control in the Great Lakes States: A Utility Survey Report, 2012. Available at: http://www.cnt.org/sites/default/files/publications/CNT_WaterLossControl.pdf.
[2] U.S. EPA (1998) Cost Accounting and Budgeting for Improved Wastewater Treatment.
[3] https://bipartisanpolicy.org/download/?file=/wp-content/uploads/2019/03/BPC-Infrastructure-Understanding-Americas-Water-and-Wastewater-Challenges.pdf