The true scale of the challenge can be illustrated by the daunting fact that we will require almost an additional 5bn litres of water per day by 2050. Not only must we increase supply, but we will also need to manage more wastewater, all in a more sustainable way, to reduce pollution and increase biodiversity.
However, even with these challenges, there is genuine reason for optimism. The industry understands what lies ahead, and I believe there is a fantastic opportunity to rise to the challenge and embrace collaboration, share expertise and welcome new talent and energy into the market. This is exactly what is needed to deliver the comprehensive upgrades that are required to overcome the obstacles of the coming decades.
Broadening the supply chain
The water sector has historically leaned heavily on a group of established suppliers. While this has fostered strong, long-lasting relationships, it has also made it difficult for new entrants, particularly SMEs, to gain a foothold, potentially limiting innovation and access to both fresh perspectives and additional resources.
Considering the ambition and the size of AMP8, the current asset management period, and future AMPs, current suppliers will need support through additional resources and talent at a scale that only a broadened supply chain can provide.
Recent research illustrates that nearly a quarter (23%) of the workforce is set to retire within the next five years, while two-thirds of engineers are actively seeking roles in other industries. These figures alone are enough to set alarm bells ringing.
To "ramp up" to AMP8, a breadth of knowledge and experience will be essential. That includes drawing on expertise from countries where significant upgrades to ageing water infrastructure are already being delivered - particularly in Europe. This, once again, demonstrates the opportunity at hand for clients and their existing supply chain to collaborate with and learn from the expertise and new approaches that exist in SMEs and larger businesses, with proof of success beyond our borders.
Collaboration over competition
AMP8 isn't just a scaled-up version of AMP7. It is a fundamentally broader programme centred around ambitious goals that extend into future funding periods. For instance, AMP8 will see considerable reductions in sewage discharges into rivers and seas and significant upgrades to existing infrastructure. This will all come alongside the commencement of major strategic projects like new reservoirs and water transfer schemes that will progress into AMP9 and beyond.
It similarly brings ambitious targets for energy efficiency, carbon reduction and renewable energy use while providing environmental enhancements through nature-based solutions. While delivering this requires deep technical expertise and a wide range of specialisms, it also demands a shift in mindset from business as usual to collaborative innovation.
Each of these elements carries significant complexities and, to navigate this landscape effectively, it's crucial to draw on technical expertise and a diversity of perspectives. What's clear is that incremental change won't be enough - clients and incumbent suppliers must be willing to challenge the status quo and embrace new ways of working.
Emerging suppliers from different sectors and geographies shouldn't be seen as threats either, but as potential collaborators. By working together, we can unlock opportunities rather than expose ourselves to further risk. Diversifying the supply chain not only strengthens resilience and improves delivery but also brings fresh talent into the industry, which is a vital step in addressing the ongoing workforce decline.
The key to progress
To meet the demands of AMP8, the industry needs new (and more) people and expertise. To achieve this, we as an industry need to push collaborative relationships to enhance delivery. This includes expanding some of the best practices out there and shifting away from short-term, transactional contracts to more inclusive partnerships built on shared risks, goals and rewards. Scaling up best practices and embracing a more cooperative mindset will be key to driving true progress.
Egis is a prime example of a consultancy ready to complement existing capabilities and inject new thinking into the UK's water sector. To find out more about Egis' services for the water industry visit: https://www.egis-group.com/sectors/water