The utility industry is at a critical juncture, facing immense challenges from aging infrastructure to increasing talent shortages. As technology evolves, so must the approach to managing these complex systems. At FYLD, we are constantly seeking innovative ways to support utility leaders and their organizations by offering solutions that tackle these fundamental challenges head-on.
According to the National Association of Water Companies (NAWC), the U.S. is home to approximately 52,000 water suppliers, with nearly half of them serving fewer than 500 customers. In 2020, the capital-funding gap for water and wastewater infrastructure in the U.S. stood at an alarming $40 billion. This gap is projected to balloon to $434 billion by 2029, creating significant challenges for water suppliers trying to maintain an aging infrastructure and implement forward-looking measures to prevent water loss.
Imagine the current state of water infrastructure as a plate of spaghetti that’s been dropped on the floor and hastily scooped back up – a tangled, disorganized mess. The supplier landscape is equally complex, consisting of investor-owned utilities, municipal water providers, and supply chain companies.
This disjointed system often hampers utilities' ability to be proactive, and as funding shortfalls grow, the need for innovative solutions like FYLD becomes more critical. By introducing AI-powered tools that help streamline operations, FYLD can help suppliers bridge these gaps, ensuring more efficient water management and improved infrastructure resilience.
In the utility industry, everything comes back to the customer. Suppliers in this sector consistently ask themselves, "Will this investment improve the customer experience?" Whether purchasing new software like FYLD, upgrading a pipe, or deploying sensors, the end goal is the same: improving water quality, ensuring reliable supply, or reducing rates.
However, there’s often a gap between customer expectations and what suppliers can realistically deliver. Many consumers, for instance, don’t fully grasp the significant advancements made in clean drinking water over the past 200 years. Despite these improvements, water conservation remains everyone's responsibility. As consumers, we’re quick to react when rates rise yet slow to report issues like a leaking toilet or a small trickle from a manhole cover.
This negligence represents a massive expense for the industry. In the U.S., drinking water systems lose at least 6 billion gallons of water every day due to leaking pipes. This amounts to 2.1 trillion gallons of non-revenue water loss annually—a staggering figure that speaks to the urgent need for more proactive solutions.
The supplier landscape is just as complex as the challenges they face. With approximately 52,000 water suppliers operating in the U.S. alone, and many of them serving fewer than 500 customers, the fragmented nature of the market exacerbates ongoing infrastructure and financial struggles.
By 2029, the investment gap for drinking water and wastewater networks is expected to reach $434 billion. This shortfall makes it difficult for suppliers to maintain aging infrastructure and proactively address water loss or other challenges.
Aging infrastructure is a crucial problem, with 47% of maintenance work being reactive rather than proactive. This ties up resources for weeks, if not months, as workers fix issues like burst mains. However, by leveraging AI-powered tools like FYLD, the industry can shift toward more proactive infrastructure management, resulting in long-term savings.
Another growing concern is the presence of PFAS (Per- and Polyfluoroalkyl Substances) in groundwater. These harmful chemicals are becoming an increasing focus of public and regulatory scrutiny, adding further pressure to utility companies already stretched thin.
To make matters worse, the industry is facing a severe talent shortage. According to the Texas Water Resources Institute, 11% of water sector workers are expected to retire or transfer each year until 2026, leaving the sector without the skilled labor it needs. To address this, utility leaders must focus on making the industry more attractive through competitive salaries, innovative technology, and meaningful work.
Regulators play a key role in ensuring that suppliers and customers meet their obligations. They are tasked with overseeing thousands of infrastructure enhancements and reviewing countless water quality samples every year. But the regulatory bodies face the same challenges as the rest of the industry, including talent shortages and bureaucratic delays.
This highlights the importance of transparency and consistency in reporting. By providing clear, accessible data throughout the decision-making and execution process, regulators can make faster, more informed decisions that benefit everyone in the ecosystem.
Bringing all stakeholders together—customers, suppliers, and regulators—is critical for a sustainable future. At FYLD, we believe in empowering utility providers with the tools and data they need to streamline communication, reduce inefficiencies, and ultimately deliver better outcomes for all.
One prime example is FYLD’s ShowMe feature, which enables customers to report issues with real-time visual evidence, reducing the time it takes to identify and address problems. This allows customer service agents to see exactly what the customer reports, helping identify and address issues quickly. Reducing the time to report a leak by just one day can save a mid-sized utility company millions annually.
The path to a sustainable utilities ecosystem will require collaboration between customers, suppliers, and regulators. Advanced technologies, such as FYLD’s AI-driven fieldwork execution platform, will be crucial in helping the industry move toward more proactive and efficient solutions. Together, we can create a future where the utilities sector is better equipped to meet the demands of tomorrow. Reach out to our team to discover how our innovative solutions can drive your business forward.