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The Growth of Blue Gold

The business of water treatment services was worth half a trillion dollars a year… five years ago. Five years from now, it will be worth a full trillion dollars. What’s going on?

Population and Water Stress

  • By 2020, close to half of the world’s population will be living in water-stressed areas.
  • By 2030, demand may exceed supply by 40% worldwide.

Perfect Storm of Demand

Four major factors are creating heightened demand for clean water in the U.S. and elsewhere:

  1. Contamination: Pollutants in the water supply are producing health and environmental risks.
  2. Scarcity: Shortage of quality water for human consumption and agriculture.
  3. Regulation: New regulatory limits for disinfection byproducts, VOCs, perchlorates, & other contaminants are complicating water treatment for end-users.
  4. Economics:  Whether it be the recovery of usable product or total processing costs of salable product, economics is playing a larger role in management’s decisions.

More Challenging Yet – A Fragmented Market

“The industrial water sector [is] promising. Customers are prepared to invest to secure their water future, to meet higher environmental standards, and to improve their operational efficiency. The main challenge that I sense is that the market is incredibly fragmented. There are many more industrial water users than municipal water users, and their water treatment needs vary greatly from industry to industry. There needs to be some sort of aggregation of customers before it becomes a truly good business.”

Christopher Gasson, Publisher, Global Water Intelligence, May 2014

A Fragmented Market

The OriginClear Model: Unique corporate customers,
serviced by regional service companies,
all under one group: OriginClear.

Today’s US Water Treatment Services Providers

  • In the US alone there are hundreds of local solution providers.
  • Each specializing in specific markets: potable, power, food & beverage, electronics, etc.
  • Each specializing in specific technologies:  membranes, ion exchange, sterilization, etc.
  • Each with their repeat customer base and local region.
  • Each with limited sales representation.
  • Each with local entrepreneurial owners.

OriginClear Group’s Strategy

  • There has been much consolidation in the larger (>$100M) companies.
  • Much of that consolidation has failed to provide better service to end users.
  • There has been little consolidation in the small to medium size companies.
  • These companies hallmark is great customer service.
  • By maintaining their management independence from “corporate”, consolidation can be very successful.
  • Consolidating these companies and maintaining their independence is OriginClear Group’s strategy.

Video:The OriginClear Group Acquisition Strategy

Continue to:
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