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Is the West Coast Water Crisis Good For Construction?

June 26, 2015 William Lucus
By Richard Heim, NCDC\NOAA (U.S. Drought Monitor) [Public domain], via Wikimedia Commons

By Richard Heim, NCDC\NOAA (U.S. Drought Monitor) [Public domain], via Wikimedia Commons

The water crisis on the West Coast of America has had some investors in Silicon Valley saying, "water is the next oil."  Traditionally, water and waste water companies have only received a few hundred million dollars of investment annually, about 1% of angel and venture capital.  However, as the water crisis continues to be an ever more serious problem that is on the forefront of peoples minds, investors have started to pay attention to the water companies.  As investors look into this large market, they are seeing that many water startup are out performing many tech startups.  

Most of us have seen the statistics on how old and outdated much of Americas infrastructure is and this is an issue that those areas under this water crisis cannot afford.  The industry is looking for new and creative solutions to solve many of the inefficiencies and outdated systems that have been in place for decades. 

"California's Historic Drought - In Pictures" by Adam Rifkin

"California's Historic Drought - In Pictures" by Adam Rifkin

What does this mean for the construction industry? Well, a lot of startups and a lot of investors have a high chance of reaching profitability (according to Lux Research, which shows water startups exceed profitability averages), which means that these companies will be looking to build and expand as soon as they get the chance.  The lack of water is a crisis, but this crisis is also a catalyst to improve our nation's infrastructure. And to improve means to build.  

Turning Water Problems into Business Opportunities | TechCrunch

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Congratulations to our 2020 Best Construction Podcast Award Winner, Bridging the Gap!

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