Three Trends in Utilities

No two days are ever the same, especially if you're employed at—or you own—one of the many utility companies in the US. In the last two decades, dwindling fossil fuel supplies, public awareness of global warming, and an ever-increasing number of alternative energy sources have significantly changed the marketplace. Wind farms have become common; telephone books, on the other hand, have become scarce. As a utilities expert, you need to stay ahead of the game if you plan to remain successful.

In recent years, the utilities industry has turned from a profitable, reliable animal into a much less powerful beast. Coal-fired power plants, for example, have been widely decommissioned or repurposed for natural gas. In fact, emissions regulations have forced utility companies to modify existing buildings—often at great cost—to ensure minimal environmental impact. It's been a busy, costly process—and it's not over yet.

The utilities sector is dependent on the whims of its customer base. Consumers are in the midst of a mass exodus: the second major trend over the last decade has been a sharp decline in the number of landline telephones. In 2009, one in four US households no longer had landlines. By December 2012, a Centers for Disease Control (CDC) study revealed that 35.8 percent of American families lived in mobile-only households. Of the remaining populace, 15.9 percent saw their landline connections as basically defunct.

The loss of the landline is a blow in itself; however, a steadily increasing number of solar panels in the US has also made an impact on utility companies' profits. Traffic lights, residential facilities, homes—even university campuses—have begun investing in solar energy en masse since the turn of the twenty-first century, primarily because it's getting cheaper. It may be a bold move, but it's a clever one: in many circumstances, solar cells pay for themselves within a half-decade.

Thankfully, there are ways to entice customers back into the fold; however, the utilities industry must also make changes. Consumers have more options than ever when choosing utility companies. A utility business has to stand out from the crowd in an increasingly busy marketplace.

Communication is the key if you want to retain your existing customers and increase your client base. It sounds obvious—after all, you probably deal with telephony in some form or another every day—but proper communication is too often neglected. Email blasts and glossy brochures are good tools by themselves, but they're most effective when they're combined with meaningful conversation. If you can build a reputation as a customer-focused, communicative utility company, you'll reap the benefits in short order.

Utility companies, like other businesses, need to grow and change with consumers to avoid stagnation. Fuel cells, for example, are worth looking at as an investment opportunity. Solar energy is also a potential moneymaker—if you can create a power-solution package laced with consumer incentives. Overall, utility companies can survive and flourish in a brave post-oil world: they simply have to evolve with the growing population.

(Photo courtesy of Freedigitalphotos.net)