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Water Supply & Irrigation Systems in Canada Industry Market Research Report Now Available from IBISWorld
Date:3/10/2013

Los Angeles, CA (PRWEB) March 10, 2013

The Water Supply and Irrigation Systems industry's performance has been buoyed by high demand over the five years to 2013, according to IBISWorld industry analyst Nima Samadi. Revenue is expected to increase an average 3.0% annually to $6.4 billion during the period. Despite the recession, demand for water remained high since 2008, as droughts and other dry weather conditions created a need for it. While water sales volumes grew, industry players passed on increased rates for water supply to customers. These rate increases are expected to continue, and industry revenue is anticipated to grow 3.7% in 2013. Canada's water rates have increased aggressively over the past five years. According to Environment Canada's 2011 Municipal Water Pricing Report, at a consumption level of 25 cubic meters per month (the average consumption of a three-person household), rates rose 24.4% from 2006 to 2009, from $42.91 to $53.39. Industry revenue has grown alongside rate increases. These increases have been justified by the need to repair the county's aging infrastructure. According to Environment Canada, Canadian municipalities currently face $31.0 billion in costs in necessary repairs and maintenance of existing infrastructure, and an additional $56.6 billion for new infrastructure.

Private operators have gained market share in the industry through a flurry of merger and acquisition (M&A) activity, continues Samadi. During the recession, many public entities had trouble raising revenue from taxes and bonds, and they were unable to invest in operations that needed upgrading. Private firms stepped in to acquire these struggling operators and expanded their stake in the industry by upgrading aging assets for a
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