Business Opportunities for Las Vegas – Understanding Aridity/Water/Energy Issues
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DRI Foundation Forum on Water, Nevada and Economic Development
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Business Opportunities for Las Vegas – Understanding Aridity/Water/Energy Issues
- 1. According to the Alliance for Water Efficiency, the water industry market worldwide is forecast to reach $1.6 Trillion by 2018.
- 2. The market growth is fueled by demand need and limited supply. Water is unique, unlike oil, and no other natural resource can aspire to replace it. The urbanization of the world is a major factor for market demand. • World population 4 billion in 1970 to 7 billion today • In 2008, urban dwellers surpassed rural inhabitants • By 2050, 70% of world population is estimated to be urban • A richer, more urbanized population will demand more water • If demand for water continues to grow at its historic rate and water efficiency levels stay constant, the global water supply would only be able to meet about 60% of the world demand by 2030 (McKinsey Consulting).
- 3. Water pollution, climate change and inefficient water infrastructure are major factors for market supply. • According to the World Bank, water pollution levels have been rising in the BRICIT countries, in contrast to the U.S. and Europe • A warming planet could have a significant negative impact on agricultural yields as well as water availability • Water leakage in mature urban areas is considered an issue with respect to supply loss
- 4. Unevenly distributed water resources – China and India
- 5. The economic growth models: The three “I”s • Intellectual capital model • Industry model • Infrastructure model Las Vegas has 2 of the 3 growth models for the water industry focusing upon water – energy – aridity Has this worked before… • Silicon Valley – Stanford University • Research Triangle – 20 million square feet • Route 128 – over 4 million square feet
- 6. Whether you think you can, or you think you can’t – you’re right. - Henry Ford World recognized research – technology – industry cluster in the water – energy – aridity arena Major strengths... • Internationally recognized research institute in the water space - DRI • A top 6 water utility • Internationally recognized and acclaimed experts in the water industry – Pat Mulroy and Steve Wells • Top 15 international airport with direct flights to all major U.S. cities • Leading North American convention center / product showcase location • Renowned Brookings Mountain West policy institute at UNLV
- 7. Major successes… • Formation of a leadership group • Las Vegas to Milwaukee and Milwaukee to Las Vegas • Business and university relationships developed at WATEC in Israel • EPA collaboration • Development of a Nevada Water Council • Initial discussions with industry leaders such as A.O. Smith, Badger Meter, Veolia, GE and Siemens Outcomes… • Job creation – organically and new business • DRI and UNLV enhancement – new projects, new funding, new recruitment • Economic diversification and regional / international collaboration