I don't know if many people in the water industry are aware of it, but there's a minor storm brewing between the American Water Works Association and some equipment manufacturers over the AWWA's Efficientutilities.com web site.
The AWWA created the site last year in partnership with Environmental Network International, an Internet-site development company. The goal is to provide a central location for web-based procurement of equipment, products and services specifically for the water industry.
It's a nice idea and not one unique to the AWWA. A number of commercial organizations have explored the possibility of providing an online market for the water industry. Although the Internet is struggling right now, many still believe it will change the way we do business. In many ways, it already has.
Equipment manufacturers are upset about the AWWA site for a variety of reasons. One objection is the idea of a non-profit, standards setting organization becoming involved in a commercial enterprise. Another is the concern that Internet purchasing could harm the Rep and distributor networks that are a mainstay for the industry.
The AWWA is involved in a variety of money-making enterprises in its role as the lead organization for the drinking water industry in the United States. It has a huge catalog of books, publishes magazines and newsletters, and has a very active conference and exhibitions department. Revenue from these enterprises and membership fees help support the organization and provide a useful service to the industry.
But those enterprises are part of the accepted role of any major organization. Running an on-line store for treatment equipment and services is not.
The Rep and distributor issue is a little more difficult. Right now, Reps and distributors play an important role in the industry by providing after-market support. Much of the equipment in the water industry is part of complex, engineered systems that are not exactly "plug and play."
When a piece of equipment breaks down or doesn't perform as planned, operators often turn to the Rep or distributor for help. It's a natural part of the business relationship. But what happens to that relationship when the operator buys a product off the Internet? Local reps would not want to provide support for a product they didn't sell.
Manufacturers are also concerned about the possibility of the Efficientutilities site providing "reverse auctions," in which companies are forced to compete online to provide the lowest price for a product. AWWA and ENI have said they don't plan to use such auctions, but equipment manufacturers are wary.
One of the biggest money-makers for the AWWA is its Annual Conference & Exhibition, set this year for New Orleans in mid-June. Each year it draws more than 10,000 industry attendees and several hundred exhibitors. To show their disapproval for the web-site venture, some equipment manufacturers have decided to pull out of the event.
That's sad. It's a lose-lose situation. It not only hurts the association but also the boycotting companies. Considering the current economic market, the industry doesn't need to be hurting itself.
Despite the resistance, AWWA recently reaffirmed its support for the web project. I guess only time and the market will tell if the site is a good idea. Given the performance of other Internet ventures, I would not want to bet on its success in the near term. Long-term, however, the market must adapt to this brave new world we face.
James Laughlin, Editor
