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What Does Declining Water Usage Mean for Water Utilities?

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Nov. 20 2020, Updated 3:19 p.m. ET

Falling total water usage in the US

According to data released by the United States Geological Survey, national water usage experienced a sharp fall between 2005 and 2010. Total water usage in the US dropped despite strong population growth. Increasing efficiency with water has been one of the major reasons behind falling water usage. Between 2005 and 2010, total water usage in the US fell by nearly 13%.

Falling water usage generally creates headwinds for water utilities’ (PHO) organic growth. This means that if water usage keeps falling, Aqua America (WTR), American States Water (AWR), and American Water Works (AWK) may see pressure on their top lines.

Continue to the next part for a discussion of sales growth.

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