AWG Plc - Competitors

AWG Plc Competition

Now Viewing AWG Plc's competition in: Water & Sewer Utilities (primary)

Recent Developments

Settlement Reached in MTBE Contamination Lawsuit - A settlement agreement was reached in May 2008 in a lawsuit filed by 153 public water systems against oil companies over water contamination from the gasoline additive MTBE. Companies including ConocoPhillips, Chevron, BP, Royal Dutch Shell, Valero Energy, and Marathon Oil agreed to pay $422 million to the utilities to settle. The companies will also pay 70 percent of cleanup costs for wells newly tainted by MTBE at any point over the next 30 years.

Group Focusing on Climate Change Adds Key Member - A coalition formed to improve research on the impact of climate change on water utilities is growing. The American Water Works Association (AWWA) has joined the Water Utility Climate Alliance (WUCA), founded by eight of the largest water utilities in the US. WUCA will focus on urging Congress to ensure that climate change legislation supports efforts by water utilities to address potential impacts of global warming on drinking water supplies, wastewater treatment systems, and flood and stormwater management programs.

More Cities Hope to Purify Wastewater for Drinking - Several cities facing water shortages plan to purify wastewater so that residents can drink it. Los Angeles has developed a plan to recycle 4.9 billion gallons of treated wastewater to drinking standards by 2019. Miami-Dade County, FL, plans to pump 23 million gallons a day of purified wastewater into the ground, where it will travel to a supply well and be reclaimed for drinking use. Past proposals to recycle wastewater failed due to cost factors and consumer resistance.

Competitive Landscape

Demand depends on commercial and residential water needs, which are partly related to population growth and partly to the level of economic activity. The profitability of individual companies depends on efficiency of operations, because prices are fixed by public utility commissions (PUCs). Large companies have economies of scale in operations and the ability to raise capital for infrastructure improvements. Small companies can compete successfully through superior engineering or by serving smaller local markets. The industry is capital-intensive: average annual revenue per employee at the large companies is $250,000.

Full Industry Overview For Water & Sewer Utilities

Water & Sewer Utilities Industry Forecast

from Hoover's/D&B subsidiary First Research

The output of US water and sanitary services is forecast to increase at an annual compounded rate of 4.9 percent between 2007 and 2012.

Water & Sanitation Services Growth Levels

First Research forecasts are based on INFORUM forecasts that are licensed from the Interindustry Economic Research Fund, Inc. (IERF) in College Park, MD. INFORUM's "interindustry-macro" approach to modeling the economy captures the links between industries and the aggregate economy.