Sewage Treatment Facilities in Canada Industry Market Research Report Now Available from IBISWorld

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Although the Sewage Treatment Facilities industry is dominated by the public sector, partnerships between municipal governments and private companies have become increasingly common over the past five years because of the significant capital outlays industry operators require. For these reasons, industry research firm IBISWorld has added a report on the Sewage Treatment Facilities industry to its growing industry report collection.

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Public-private partnerships will continue as treatment facility upgrade needs expand

The Sewage Treatment Facilities industry, which generates an estimated $6.0 billion in revenue, includes facilities that collect, treat and dispose of wastewater generated by homes, businesses and industrial clients. Operators also collect and treat storm water runoff. Over the five years to 2013, revenue for the industry is estimated to grow at an annualized rate of 5.5%, including projected growth of 6.2% in 2013. “The industry garners the vast majority of its funding from municipalities, a factor that minimizes revenue volatility for the industry,” says IBISWorld industry analyst Caitlin Moldvay. “These municipal services are funded through water rates, property taxes, development charges and government contributions. As a result, industry revenue has grown consistently over the past decade.” The majority of the Canadian population is covered by municipal wastewater systems, according to the latest information from Environment Canada. In 2009, 88.3% of the Canadian population was covered by municipal wastewater systems, while 12.4% had private septic systems.

The Sewage Treatment Facilities industry has a low level of market share concentration. Most sewage treatment facilities are locally operated by governments and municipalities and generally do not extend outside of the areas they serve. Additionally, “because many companies receive contracts that can last from two to more than 20 years, market share conditions typically remain stable,” says Moldvay. As such, market share concentration has not changed much in the past five years and will remain flat in the five years to 2018.

Although the industry is dominated by the public sector, partnerships between municipal governments and private companies have become increasingly common over the past five years. Under these partnerships, municipal governments typically retain ownership of the facilities, but private companies are contracted to design, build, finance and operate the facilities. These partnerships have become more frequent largely due to the significant capital investment necessary for establishing, maintaining and updating wastewater facilities. The majority of these projects cost between $10 million and $30 million to finance. And a 2007 survey by the Federation of Canadian Municipalities estimated that $88 billion as needed for future replacements and upgrades of water and wastewater systems in Canada. Because of the large capital needs, public and private partnerships will continue to become increasingly common in the Sewage Treatment Facilities industry over the next five years. For more information, visit IBISWorld’s Sewage Treatment Facilities in Canada industry report page.

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IBISWorld industry Report Key Topics

This industry operates sewage systems or wastewater treatment facilities that collect, treat and dispose of waste. Waste includes wastewater from homes, businesses and industrial clients as well as storm water runoff. The industry includes both public- and private-sector operators.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalization & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US and Canadian industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.

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Gavin Smith
IBISWorld
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