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Frost & Sullivan has announced its 2001 Market Engineering Awards, presented to companies who have worked diligently to make a positive contribution to the commercial water treatment industry. The company has also released a new analytical report on the industry.
The Product Line Strategy Award is presented to Cuno Inc. The Market Engineering Leadership Award is given to Culligan International. And the Brand Awareness Development Award is awarded to Liquid Metronics Inc.
While these companies are among those leading the way in the industry, many more end users in a wide range of commercial fields also are making great strides becoming increasingly aware of water quality issues and beginning to acquire equipment to treat water more effectively.
This is according to new analysis from Frost & Sullivan in U.S. Commercial Water Treatment Markets. The report reveals that this industry generated revenues of $551 million in 2000 and is projected to earn $773 million by 2007.
"Most commercial end users have little interest in adding complicated water treatment systems to their operations," says Frost & Sullivan Industry Analyst Matthias Kubr. "Manufacturers must provide water treatment equipment that is simple to use and easy to maintain."
Because products marketed as simple and reliable will see the greatest sales among commercial customers, automated systems will likely be in high demand among end users. Automatically regenerating resin beds in water softeners and long-lasting filter cartridges should attract many customers.
"Service contracts, which outsource regular service of the equipment to water companies or dealers, can offer part of the solution," says Kubr. "But systems also need to be stable and immune to breakdowns."
Meanwhile, product differentiation remains a top challenge among market participants. While there are a few large, national manufacturers, the market is crowded with smaller regional players.
As a result, market participants find it difficult to differentiate their products from those of their competitors. Developing innovative products or supplementing sales with superior service could help companies attract more customers.
"For most commercial water treatment end users, the price and capabilities of the systems are more important than the associated brand name of the manufacturers," says Kubr.
Frost & Sullivan, with headquarters in San Jose, Calif., is a global leader in international strategic market consulting and training. Along with providing in-depth strategic market consulting analyses, Frost & Sullivan also provides custom consulting services to a variety of national and international companies.