AWWA Releases 2008 State of the Industry Report

Key Findings Include Concerns over Source Water Availability and
Infrastructure Failures

DENVER, Oct. 23 /PRNewswire-USNewswire/ -- Source water supply and protection
emerged as the top area of concern among North American water professionals in
the 2008 "State of the Industry Report," published by the American Water Works
Association (AWWA).

The report, now in its fifth year, represents an annual checkup for the water
industry, with more than 1,800 leaders assessing the overall health of the
industry and identifying key challenges. For the first time, source water
supply and protection was the most frequently mentioned area of concern for
both the short and long term. The full report was published in the October
issue of Journal AWWA.

"The State of the Industry Report provides direct insights into how water
professionals feel about issues today and in the future," said AWWA Executive
Director Gary Zimmerman. "Our analysis of this data guides the association's
programming decisions to help address the greatest concerns of our
membership."

Respondents expressed concerns about ensuring adequate future water resources,
particularly in arid or semi-arid regions experiencing population growth. Many
respondents stressed the need for effective water efficiency and conservation
programs, with others indicating a growing interest in technologies such as
water reuse and desalination.

Other top issues identified in the report include:

-- Infrastructure: Described as "aging" by most respondents, but
also "crumbling" or "failing" by others, the state
of underground water infrastructure continues to concern water
utilities. Respondents lamented that other pressing expenses cause
utilities to defer infrastructure maintenance, leading to even steeper
expenses in the future.

-- Regulatory Issues: Many water professionals express concern about
complying with new, complex regulations.
-- Workforce: The effects of the retiring Baby Boomer generation are
being
felt in the water industry. Older workers are retiring, intellectual
capital is walking out the door, and competition is fierce for the
shrinking pool of new workers entering the marketplace.
-- Business Factors: Financing infrastructure repair and improvements,
source water development, regulatory requirements, security, and a
host
of other factors continues to be a challenge throughout the industry.

The report, which provides U.S. and Canadian breakouts, also includes a
measure of overall industry soundness, or the respondents' assessment of the
industry's overall health. In 2008, U.S. respondents rated the current
soundness of the industry slightly higher than in 2007. However, for the first
time, U.S. respondents rated the future soundness lower than its current
soundness, indicating significant concerns about the years ahead. The future
soundness ratings of the Canadian water industry dropped significantly in
2008, mirroring the U.S. decline in optimism.

"The report confirms a lot of things we know to be true, but also illuminates
some blind spots," said AWWA President Mike Leonard. "As an organization, we
will continue to provide water professionals with the resources they need to
continue to supply their customers with safe drinking water."

Among survey respondents, 68% were water utility professionals, 24%
represented industry manufacturers or service providers, and the remaining
respondents came from academia, science, and regulatory bodies.

AWWA members may access the report online at http://www.awwa.org/publications.

Non-members may purchase the article through http://www.thewaterlibrary.com.

AWWA is the authoritative resource for knowledge, information, and advocacy to
improve the quality and supply of water in North America and beyond. AWWA is
the largest organization of water professionals in the world. AWWA advances
public health, safety and welfare by uniting the efforts of the full spectrum
of the entire water community. Through our collective strength we become
better stewards of water for the greatest good of the people and the
environment.

SOURCE American Water Works Association

Greg Kail of American Water Works Association, +1-303-734-3410,
gkail@awwa.org