PCCA Journal|1
st
Quarter 2015
11
I
n an environment that will exhibit disruption and
change, being nimble is a necessity. The concept
of being flexible rather than ridged in the face of
change is one that for many industry participants is
counter intuitive. Bruce Lee might have said it best
when he suggested the following: “Empty your mind, be
formless. Shapeless, like water. If you put water into a cup, it
becomes the cup. You put water into a bottle, and it becomes
the bottle. You put it in a teapot, it becomes the teapot. Now,
water can flow, or it can crash. Be water, my friend.” Those
leaders who adapt to change, and are nimble in the coming
decade will thrive, while those that remain ridged will be
ground down the way water cuts a canyon.
Nimbleness is a necessity for firms in the overhead and
underground utility sector. Continuum Advisory Group’s 2015
utility outlook provides a comprehensive look into the utility
markets, including these segments:
s
Electric Transmission & Distribution
s
Gas/Liquid Transmission & Distribution
s
Communication
Exhibit 1 demonstrates that after a period retraction in
2009-2011, the overhead and underground utility markets
have returned to more stable growth. This growth is unbal-
anced however as it is primarily in the Gas and Electric
Transmission & Distribution sector and more specifically
pipeline construction, with some growth in the Communica-
tions sector.
Continuum predicted a short and shallow economic
slowdown during the first half of 2015. This is no longer
possible, and the earliest that our next down cycle can begin
is in 2016. Our current forecast anticipates this slowdown in
late 2016 and early 2017, and it will be responsible for the
slower spending growth in this period. Overall, the long-term
prospects for overhead and underground utility construction
are very good, and in the following pages, we describe the
drivers of growth for each sector.
Transmission & Distribution—
Electric and Gas
Spending Forecast
The most viable and growing utility markets are electric and
gas transmission & distribution. The long-term prospects are
robust. In the 10 years following 2003, spending increased
from $14 to $63 billion, and Continuum forecasts continued
spending growth (Exhibit 2). Traditionally, construction
Nimble by Nature:
The 2015 Utility Outlook
By Mark Bridgers, Nate Scott, and David Shipley
Exhibit 1
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