Xylem CEO: “smart water is the next disruption”
Global water technology company Xylem Inc. has a mission to “solve water”. And now, its CEO, Patrick Decker, has spoken out about how the company expects to do it. Xylem has made multiple acquisitions in the smart water area, and pumped money into research and development. By ‘smart water’ Xylem is referring to the kind of tech we see in smartphones and other similar devices, but applied to the water industry. Solutions built around this tech, and including advanced data analytics, have the ability to redefine the economics of water.
Xylem’s share price has remained pretty much flat over the last five days
Source: Yahoo Finance
Describing the major challenges in the “full cycle of water”, Decker says that there are three that stand head and shoulders above the rest: water loss across the distribution network, such as through aging infrastructure or poorly measured usage; stormwater overflow, where flooding puts excessive pressure on sewage and other systems; and rising energy consumption: the water sector uses a lot of energy, and it’s a major generator of greenhouse gases. Smart water technology has the ability to help in all of these areas through accurate water management, insights-after-the-event, and precision data crunching.
Decker says: “I believe passionately that smart technologies in the water sector are going to change the world in a few different ways. In my view, the reason why the water sector is the next big sector to be disrupted in a positive way through technology is because it has all of the necessary characteristics to do so. First of all, there is massive spending in the sector – one trillion dollars a year. Secondly, it’s got an incredibly wasteful and inefficient supply chain. Third, regulation is going to drive a technology disruption. Issues of water scarcity and water affordability can only be dealt with through positive technological disruption.”
Dominion holds Xylem Inc. in its Global Trends Managed Fund.
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