American Water - Competitors

American Water Competition

Now Viewing American Water's competition in: Water & Sewer Utilities

Recent Developments

Pharmaceuticals in Water No Impact on Health - Trace amounts of pharmaceuticals and personal care products in drinking water don't impact human health, according to the American Water Works Association (AWWA). Media reports in early 2008 about trace levels of pharmaceuticals in drinking water simply reflect advancing technology that allows scientists to detect more substances at lower levels. People regularly consume or expose themselves to products containing these compounds in much higher concentrations than are found in drinking water, according to AWWA.

Water Utilities Cooperate on Climate Change Issues - Eight of the nation's largest water utilities have formed a coalition to improve research into the impact of climate change on water utilities. The Water Utility Climate Alliance (WUCA) hopes to improve the water supply sector's ability to cope with the potential effects. Water systems face risk due to diminishing snowpack, bigger storms, more frequent drought, and rising sea levels, which utilities must be prepared to respond to.

Group Seeks Protection from Lawsuits - The National Association of Regulatory Utility Commissioners wants state officials to adopt policies that protect utilities from lawsuits claiming injuries due to contaminated drinking water. Many industry experts say that the issue is crucial for utilities, as they could be targeted for contaminants such as perchlorate and trichloroethelene, which aren't EPA-regulated. Congress has not acted on previous efforts by the group seeking federal protection from such lawsuits.

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.