Public-private partnerships will continue as treatment facility upgrade needs expand
Los Angeles, CA (PRWEB) March 12, 2013
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.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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