U.S. Environmental Companies Go Global — at Warp-Speed
By Robert Williams
In September 1999 the WWEMA Corner discussed the efforts being made to reduce or eliminate the impediments to environmental exports. Although this is still an important and relevant subject, just two years later we can readily discuss how U.S. environmental companies have, in fact, successfully adapted to the numerous demands of international commerce.
For example: A recent U.S. Department of Commerce, Environmental Technologies Industries' Newsletter (June 2001) touted $184.5 million in new export contracts this past year. [Personally, I can point to a 400,000 PE (population equivalent) wastewater treatment plant that Ashbrook Corporation is currently building in Rancagua, Chile, with a total project value of about $12.5 million; and to a 250,000 PE wastewater treatment plant in Los Angeles, Chile, with a total project value in excess of $11 million, which will begin this fall. This is in addition to numerous projects in the U.K.]
The emergence of a world economic view over the last several years, and the rapid growth of emerging economies — such as those in South America, and Asia — has helped to drive the transition to globalization. It should also be mentioned that the global water and wastewater utilities market is estimated to be in excess of $142 billion. (This compares to just $52 billion for the U.S., and alone provides a major incentive for domestic environmental companies to move rapidly toward globalization.)
Plus, industry growth in the U.S. has slowed to the low single-digit level, while still-emerging parts of the world are recording enviable double-digit growth in the funding of water and wastewater projects (due in part to long overdue modernization, important economic improvements, and to the growing expectations of their respective populations).
It has been the successful adaptation of U.S. environmental companies, in particular, to the specific requirements and opportunities of the global marketplace that has made the transition of these companies so incredibly rapid and effective.
To compete successfully, U.S. companies have had to take the lead in productivity, value, and innovation — no small feat in and of itself — and not to be underestimated. Also, U.S. companies have had to, in effect, "think globally and act locally" as the old adage goes. This has required the development of extensive global relationships in both the financial and engineering communities.
Fortunately, leading U.S. environmental companies have already adapted to basic global standards such as those embodied in the ISO certification process, and have successfully incorporated relevant metric considerations.
Additionally, this remarkable transition has required the development — or expansion — of a true local presence in locales all around the globe, including "on-site" sales, engineering support, service, and project management. More specifically, those companies leading the charge have developed both a multi-lingual and a multi-cultural view of business — as with all endeavors, communications is everything. And, certainly, local language and culture has to be respected and supported if our expertise is to be of real value.
To accomplish all of these tasks in such a compressed timeframe, U.S. environmental companies have had to make tremendous financial commitments. And it is these substantive financial commitments, in particular, that underscore the long-term nature of this rapid and formidable transition to globalization. These commitments also speak volumes of the confidence that the world capital markets have in the capabilities of U.S. environmental companies.
This "adaptation" by U.S. environmental companies is not the end of the story, but only the beginning of a new and expansive era for the water and wastewater industry as it brings modern, effective, efficient technologies and processes to an emerging country in South America, Asia, Eastern Europe, Africa or to a growing town in Mexico, Central America, Australia, or the Middle East. [Incidentally, one company I am very familiar with is even building a treatment plant in Antarctica.]
The age of globalization has arrived for the U.S. water and wastewater industry with the promise of a busy, productive, and profitable future. And it is reasonable to expect that the industry outlook will remain bright as long as we continue to adapt and meet the comprehensive environmental needs of not only the U.S., but the entire world. WW/
About the Author: WWEMA-member Robert Williams is president of Ashbrook Corporation (Houston, Texas) and Managing Director of Simon-Hartley Ltd. (Stoke-On-Trent, Staffordshire, England).