Drowning in debt: Firms face operational losses as rising depreciation costs flood the industry

Operators in the Water Supply industry have faced difficult conditions over the past five years. Many consumers have become increasingly conscious of their water use as new water meters and volumetric pricing have been rolled out across New Zealand, limiting revenue growth. Meanwhile, improved rainfall over much of the past five-year period has limited demand for irrigation water from agricultural operators. Industry revenue is expected to increase at an annualised 1.8% over the five years through 2017-18, to $808.9 million. However, high rainfall and an increased availability of water are anticipated to contribute to industry revenue declining by 1.6% in the current year...read more.

Industry Statistics & Market Size
Revenue
$809m
Annual Growth 13-18
1.8%
Forecast Growth 18-23
Profit
Employment
1,825
Businesses
191
Market Share of Companies

Industry Threats & Opportunities

  • Industry players provide an essential service for businesses and households
  • The industry has increasingly adopted variable pricing measures, such as water meters
  • Industry enterprise numbers have increased due to the de-merging of water supply entities
  • Industry Report - Industry Locations Chapter

    Industry establishments are distributed throughout New Zealand. Larger metropolitan cities and regions, such as Auckland, Wellington and Christchurch, have a lower share of industry establishments when compared with their share of the population. For instance, approximately 22% of industry establishments are located in Auckland, compared with 34% of the country’s population. Economies of scale reduce the need for multiple establishments in the same jurisdiction.New Zealand’s large agricultural sector creates demand for water supply firms in regional areas across the country. Furthermore, the Otago and Marlborough regions are notably overrepresented in terms of their share of industry establishments. Bot...purchase to read more.

    Additional Insights for the Water Supply Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Water Supply Industry are

  • Ability to accommodate environmental requirements
  • Ensuring pricing policy is appropriate
  • Having an integrated operation
  • IBISWorld analysts also discuss how external factors such as Demand from agriculture and Population in the Water Supply industry impact industry performance..

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    What's in this report

    What is the Water Supply in New Zealand Industry?

    Industry operators filter, treat and supply water to households and businesses. Industry firms are also involved in supplying water for the purposes of irrigation to agricultural businesses.

    Industry Products
  • Fixed water service charges
  • Volumetric water service charges
  • Other water services
  • Industry Activities
  • Water reservoir operation
  • Water distribution by pipelines
  • Filtration plant operation
  • Desalination plant operation
  • Pumping station operation
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Demand from agriculture
  • Population
  • Availability of water
  • Level of annual rainfall

  • Current Performance
  • Industry structure
  • Household charges
  • Agricultural demand
  • Chart: Revenue Growth

  • Industry Outlook
  • Industry participation
  • Investment
  • Volumetric pricing and household consumption
  • Table: Water Supply Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Water Supply Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Grape Growing in New Zealand
  • Grain Growing in New Zealand
  • Dairy Cattle Farming in New Zealand
  • Consumers in New Zealand

  • Key Selling Industries
  • Engineering Consulting in New Zealand
  • Heavy Industry and Other Non-Building Construction in New Zealand

  • Products & Services
  • Fixed water service charges
  • Volumetric water service charges
  • Other water services
  • Chart: Water Supply Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Agricultural firms
  • Other businesses
  • Households
  • Chart: Major Market Segmentation for the Water Supply Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Water Supply

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Water Supply Industry

  • Industry Globalization
    Watercare Services Limited,
  • Table: Watercare Services Limited - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Water Supply Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Water Supply Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Aquifer
  • A body of rock that holds groundwater that can be accessed.
  • Groundwater
  • Water beneath the surface that eventually drains into rives or lakes.
  • Surface Water
  • Water that is visible in lakes, reservoirs, wetlands, rivers and streams.
  • Turbidity
  • The level of haziness in water.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Water Supply in New Zealand market research report is a comprehensive guide to market size and growth prospects. Our industry reports offer strategic industry analysis of the factors influencing companies, including new product developments, economic, lifestyle and demographic influences, distribution and supply chain factors and pricing issues. Full analysis accompanies our data forecasts to illustrate how the market responds to emerging industry trends.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Water Supply in New Zealand:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Water Supply in New Zealand market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Water Supply in New Zealand, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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