Utility Horizons - Second Quarter 2013 - (Page 54)
On The HORIZON...
Utility Automation & Information Technology projects had a
very good year in 2012, and
2013 promises to be even better.
As the North American market pulls
out of a protracted multi-year recession, early indications are that 2013
will take up and perhaps exceed the
pre-recession pace of automation/IT
project development at utilities of all
types, sizes and locations across the
U.S. and Canada.
The following, ʻYear-in-Reviewʼ compares CY2012 with the five (5) prior
years from a New (Planned) and Existing (Legacy) projects perspective.
The reasons for this optimism go well
beyond economic recovery, however. Offsetting the decline in average
smart metering project values – the
result of being on the backside of
the Stimulus-driven AMI surge between 2009 and 2012 – all utilities
will face unprecedented challenges
in the years ahead.
recession that has held back growth in most
other industrial and commercial markets – in
many cases dramatically. Here’s our take on what
happened in each year and why…
2008 [8481]: Recession, starting in Q4-2007,
takes a big toll on 2008 projects as utilities
– in sheer panic – put the brakes on everything
possible until they could get a better grasp of the
1
decidedly negative economic outlook.
2009 [1150]: Obama takes office and pens ARRA
Stimulus, creating a (temporary) positive surge in
project activity, but most utilities continue to delay
or abandon practically all projects except those
involving AMI and/or Stimulus funding.
2010 [1133]: Utilities realize that the recession is
not ending anytime soon, so they begin to scale
back on project budgets, allowing only the most
essential projects to move ahead, most of which
are upgrades and expansions, but hardly any
greenfield projects. The Aging Workforce issue
also starts taking a toll, often delaying new project
initiatives that retiring Boomers will not be around
to complete.
2011 [1021]: Utilities continue to scale back
project budgets as recession drags on, but
glimmers of recovery begin to emerge in late
Q3 and Q4, counterbalanced by ongoing Aging
Workforce issues.
2012 [1054]: Utilities begin to see leading signs
of economic recovery and start to release project
budgets cautiously, but increasingly optimistically,
as new demands for security, safety, reliability and
operational efficiency start pushing hard against
budgetary constraints. Also, election year rhetoric
temporarily drags down economic outlook, but
leading economic indicators paint a different
picture, leading to growing optimism that a slow
but steady recovery is under way.
Looking Ahead:
Mounting Challenges
So far there are continuing signs that as the
economic recovery continues, so will the trend
toward releasing more utility automation/IT
budgets and new project development. There
are now readily apparent signs of economic
recovery, and despite the now waning emphasis
on smart metering, we strongly believe that Aging
Workforce and Declining Infrastructure – together
with mounting Security and Reliability challenges
– will likely drive utilities to invest more confidently
in automation/IT as their only realistic option to
Numbers in [brackets] are the number of Planned (New) projects identified in each calendar year
54 • UTILITY HORIZONS • Q2 - 2013
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Table of Contents for the Digital Edition of Utility Horizons - Second Quarter 2013
Utility Horizons - Second Quarter 2013
Publisher’s Message
Contents
The Queue
Automation Rising!
Inside Tracks
Focal Point
Automation and Innovation at Epcor Water Services
BLeading Edge: Advanced Technology Perspectives
Consumer Engagement: The Future Goes Mobile
Demand Response: Why the Future Is in the Cloud
Building Paths to Smarter Water Management
Bullet-Proofing Your Scada System Against the Evil-Doers
Education Matters
Standard Bearings
Regulation De Rigueur
On the Horizon
Purviews
Intersections
Eventualities
Thinking It Through With Sparky Flamedrop
Loose Ends
Utility Horizons - Second Quarter 2013
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