Industry Analysis & Industry Trends
Demand for water has remained high, as droughts and other dry weather conditions created a need for it. Nevertheless, during the recession, private companies stepped in to acquire struggling operators and expanded their stake in the industry by upgrading aging assets for a profit. In the next five years, mergers and acquisitions will remain a major component of the industry. Operators that buy struggling companies will invest in making water supply assets more efficient, which will likely lead to further rate increases and higher revenue for the industry... purchase to read more
Industry Report - Industry Analysis Chapter
Revenue for the Water Supply and Irrigation Systems industry is expected to climb at an annualized rate of 2.7% to $6.8 billion over the five years to 2016. Higher water sales volumes and rate increases have led to revenue growth during the period, while dry weather conditions have led to supply constraints.
Historically, Canada’s water rates have increased aggressively. According to Environment Canada’s 2011 Municipal Water Pricing Report, at a consumption level of 25.0 cubic metres per month (the average consumption of a three-person household), rates rose 24.4% from $42.91 in 2006 to $53.39 in 2009. Furthermore, average rates rose more sharply at higher levels of consumption. Water rates are expected to continue rising, with strong support from municipal government... purchase to read more