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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:

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Electric Transmission & Distribution

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Gas/Liquid Transmission & Distribution

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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

Continued on page 12