Growth remains elusive — and may remain so for the foreseeable future.

In the wake of the economic downturn, utilities are seeing a slow return to profitability.

However, top-line revenue growth remains elusive — and by most forecasts, it may remain so for the foreseeable future.

Slow sales growth, increasing cost and rate pressures, regulatory challenges and pushback on rate increases by public utilities commissions are forcing utilities to rethink their supply management models. Additional pressures include:

• Increased capital requirements as utilities upgrade their infrastructure
• Issues related to environmental sustainability
• Shorter product life cycles and rapidly changing customer demands
• Increased complexity of supplier networks
• Price volatility across commodities
• The need to manage risks from unforeseen events

To achieve the next generation of productivity gains, utilities will need to develop closer relationships with suppliers.

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