Water Well Journal
Issue link: https://read.dmtmag.com/i/643500
Reeder found through talking with contractors the ones who take the time to explain how their well system works are the ones who have more success as opposed to contractors who just provide water. Going the extra mile to explain the well system process shifts the mentality of the customer. "Homeowners also want the highest tech product out there," he says. "One contractor told me we need to leverage that as an industry." 3. Proliferation of brands and entrants The number of brands has changed dramatically since Reeder attended his first NGWA Groundwater Expo and Annual Meeting in 1995. He believes competition is good for customers and pushes the industry to be better. It also offers more choices to the contractor. Another positive with the increase in brands and entrants is it shows the groundwater industry is a profitable market. "These are good business people and a lot of them are from international companies," he observes, "and they've looked at our industry in the United States and say, 'We need to be in that industry.' They've figured out this is not a stagnant indus- try; there are opportunities in this industry and they're trying to take advantage of those opportunities." 4. The marketing and selling of green Reeder initially thought the green initiative was a passing fad, and he'll be the first to admit he was wrong. Green sells. Efficiency mandates for motors, pumps, and drives are being set by the U.S. Department of Energy. Engineers at manufacturing companies are investing time in ensuring their products comply with these mandates when they go into effect. Renewable energy and drip irrigation are examples of how green sells. The industry, though, has been green long before it became a trend. Reeder calls a private well system the "deal of a lifetime: an undersold story." He illustrates it by breaking down the cost of a four-person household where: • Each person uses 120 gallons of water per day, totaling 480 gallons per day for the family of four • 10 gpm pump = 8 minutes per day = 24 hours per month • 1 hp motor at $0.13 per kilowatt-hour (based on the aver- age cost of electricity in 2014 in the United States) This works out to $5 per month to supply the four-person home with water. The average television cable bill in 2014 in the United States was $98.15, up 39% since 2010. "Five dollars for your water system versus $100 for your cable bill," Reeder says. "To me, that's a deal of a lifetime. I know you have capital expenses to have the well drilled and to buy the motor and pump, but once the system is up and running—$5." The alternative to a point-of-use private well system is having long lines of pipe deliver water from a centralized community water system. That can become costly with leaks and more energy required to move water. Generally, point-of- use systems are more efficient at delivering anything, includ- ing water. "We offer efficiencies probably no one else does," Reeder says, "but if you want, you can be even more efficient with al- ternatives. You can look at adding run capacitors to systems, VFDs in most applications will increase efficiencies, and you're going to see more solar pumping." 5. "Everybody talks about the weather" It used to be global warming; now the term is climate change. And no matter how one feels about it from a political standpoint, the weather has been more extreme over the last few years. Parts of the country experienced record rainfalls in 2015 dating back to 1895, according to the National Centers for Environmental Information. At the same time, California is experiencing one of its worst droughts in the past century and aquifer levels are dropping. The media is reporting on these issues and the industry is being thrust into the spotlight. As a result, the general public seems it's becoming more aware of the importance of ground- water. California is one of the most regulated states in the nation and joined the rest of the western states in regulating ground- water. A three-bill package was signed in September 2014 and with good reason: 75% of the population receives a portion of drinking water from groundwater. What are the implications in parts of the country where groundwater levels are dropping? • Greater incidence of dry wells • More above-ground storage • Deeper sets, higher horsepower pump • Increased incidence of failures. This creates the opportunities to sell different types of products: • Dry well protection • Slower, more measured withdrawals via VFDs • Booster pumps for large storage tanks • Drives to prevent over-pumping • Higher horsepower units for deeper sets. 6. Information shift to the consumer The birth of the Internet spearheaded change in the knowl- edge level of today's homeowner. To listen to Reeder's "Seven Trends and Opportunities That Are Transforming Our Industry" from the 2015 NGWA Groundwater Expo and Annual Meeting, visit https://ngwa.confex.com/ngwa/expo15/webprogram archives/meeting.html. As a 2015 Expo attendee, you can access all of the recordings for free. Twitter @WaterWellJournl WWJ March 2016 23 SEVEN TRENDS continues on page 24