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TheocusothisworkwastoassesstheollowingpremisesThebusinessowaterisrapidlybecomingacriticalissueevenorourregionanditmayprovidetremendousbusinessandeconomicopportunityiweareabletoproperlyalignourassets.Theregionhassucientassetstojustiyemphasisonthewaterqualityquantitysectorasaneconomicdevelopmentstrategy.Innovationsorprotectingtheregionswatersupplyasenergydemandsandwateruseincreasesareessentialcomponentsorealizingtheregionsgreatpotentialintheenergysector.Irrespectiveothedegreetowhichtheregionhassucientassetstobeaplayerinthebusinessowaterultimatelyourparticipationintheutureoenergywillrequiresolutionstowaterissuesandwillnothappensolelyromtheoutside-in.InordertoaddressthesepremisestheconsultingteamperormedresearchandanalysisincludingAnalyzetheregionsstrengthsgapsandopportunitiesthatwouldbeassociatedwithourgrowthasaleaderinsustainablewaterdevelopment.Identiythewater-relatedindustrysupplychaintoassessthejobsandindustriestheysupportintheregion.Provideanalysisohowthewater-relatedclusterinsouthwesternPennsylvaniacomparestootherregions.IdentiyimportantfrmswhoprovidewatersolutionstechnologiesservicesRDconsultingengineeringetc.Assesstotalemploymentandsales.Examinethewaysinwhichwaterimpactsenergyandothereconomicinterestsintheregion.TheultimategoalhoweverwastodetermineithesouthwesternPennsylvaniaregionhastheassetsandresourcesoawater-relatedindustryclusterandthentoidentiytheopportunitiesorthatcluster.Thinkingowaterasanindustryclusterisaverynewconceptandthereorenoready-madewayodigestingandreportingeconomicinormationexists.Unlikemoreamiliarindustryclusterssuchastheautomobileindustryorexampletheconsultingteamwasrequiredtoconsiderthecreationoanewclusterdefnition.Worldwidethescarcityostablesuppliesopotablewaterisamajordrivingorceintheeconomicsowaterenergyandtheoveralleconomy.InsouthwesternPennsylvaniaourrelativeabundanceowaterisablessingorourresidentsandindustriesbutthatabundanceisalsoourburdenwhenitcausesoodsorproduceshighvolumesopollutedruno.Theregionaveragesmorethan37inchesoprecipitationperyearoccurringonanaverageo153days.1WaterisundamentaltoouridentityespeciallytheimageotheThreeRivers.RainandriversarethewaterweseebutgroundwaterisestimatedtobetwiceasabundantastheamountowaterthatowsannuallyinPennsylvaniasstreams.2Theglobalmarketorwatersupplyandtreatmenttechnologyandservicesisprojectedtogrowrom485billionto770billionby2016.Theoverallmarketwillgrowbymorethan5percentperyearbutitcouldbeashighas10percentbecausesomesegmentssuchasdesalinationwillexperiencesignifcantgrowth.3Marketsorwatertechnologyandsolutionscompareavorablytootherhighproflemarkets.ForexamplethemarketordesalinationislargerandwillgrowasterthanthemarketorenergystoragetechnologyandthemarketorwastewaterislargerthanthemarketortransportationandsmartgridtechnologiesseeFigures3and5.AnumberoleadingtechnologyandsolutionprovidersarelocatedinsouthwesternPennsylvaniaservingtraditionalandemergingmarkets.TheTableonpage3identifespotentialpilotprojectsineachsectorbutalternativeprojectsandprioritiesmayemergeasCarnegieMellonUniversityiscurrentlydefningspecifcpilotprojectstoadvanceinnovationintheregionswatersectors.Onthebusinesssidetheregionhasmorethan3000frmsprovidingcomponentsproductsandservicesthataccountormorethan5billionindirecteconomicactivity.Inadditionourwatersuppliessustainmorethan3billionooutputinagricultureandoodprocessing.Waterisalsocriticalorthegenerationandcoolingomorethan2.4billioninelectricityromtheregionsthermoelectricplants.Overallwaterisusedinavarietyowaysortheextractionandproductionoenergyaswellastransportingmaterialsandcleaningtheemissionsromthisactivity.Anumberocitiesaremarketingtowetindustrieswhichareindustriesthatuselargeamountsowater.Pittsburghhashadandwillcontinuetohavesuccessinattractingthesewetindustriesbutthisapproachdoesnotdeveloptheregionaleconomyanymorethanatraditionalindustryrecruitmentapproach.Otherregionsespeciallyinthesouthwestarepursuingwatereciencyandreductionstrategies4IntroductionWaterMarketsRegionalOpportunityWithoutourabundantsupplyofwaterandsupportingbusinesseswecouldnotsustainthe13.7billionenergysector.4