NEWS RELEASE                                                                                        MARCH 2012

Liquid Treatment and Flow Control Market Remains Fractured

Despite considerable consolidation in the last decade the market for equipment and consumables to clarify and move liquids remains fractured. No company enjoys more than a few percent of the total market. No company has more than 15 percent of any market segment. In each segment the market share of the top 5 companies ranges from 12 to 43 percent. Market shares for the top 30 companies range from 28 to 73 percent in the seven major segments. This is the conclusion reached by the McIlvaine Company through comparison of its analyses in a number of specific market reports it publishes.

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Segment

Group

Sales

$ Millions

Total Segment Sales

$ Millions

Market Share                           %

Cartridge

Top 5

       3,500

     15,000

     23

Cartridge

Top 30

      7,000

     15,000

     47

Liquid Macrofiltration

Top 5

        900

     6,300

     14

Liquid Macrofiltration

Top 30

       3,000

     6,300

     48

Cross-flow Membranes

Top 5

       2,500

     10,200

     25

Cross-flow Membranes

Top 30

       4,000

     10,200

     40

Sedimentation/ Centrifugation

Top 5

       3,000

     7,000

     43

Sedimentation/

Centrifugation

Top 30

       4,200

     7,000

     60

Pumps

Top 5

     11,200

   37,200

     30

Pumps

Top 30

     27,300

   37,200

     73

Valves

Top 5

       6,400

   53,100

     12

Valves

Top 30

     14,700

   53,100

     28

Treatment Chemicals

Top 5

       7,200

   23,900

     30

Treatment Chemicals

Top 30

     12,300

   23,900

     51

GE is one of the few companies in most sectors. With its acquisition of Dresser, it gained considerable valve market share. The acquisition of Betz decades ago made it a top player in treatment chemicals. It has also purchased a number of companies making filtration equipment. Large pump players such as Xylem have small market shares in the other segments.

Dow chemical is the leading supplier of membranes for reverse osmosis systems but does not supply the systems. Dow is a major supplier of chemicals but not filtration equipment.

One reason for the lack of concentration is the diversity of product requirements. An inexpensive pump to handle 2 gpm of clear water bears little resemblance to a 50,000 gpm slurry pump used in a flue gas desulfurization system. The complex highly machined and balanced centrifuge is far different than a simple clarifier but both are included in the sedimentation and centrifugation category. Alfa Laval and GEA enjoy a large market share in the disk stack centrifuge sub sector but are not leaders in hydro-cyclones, clarifiers, or dissolved air flotation which is also included in the category.

Market shares in each of the seven product areas are included in the following McIlvaine market reports:

Cartridge Filters: World Market click on: http://www.mcilvainecompany.com//brochures/water.html#nO24

Industrial Valves: World Markets click on: http://www.mcilvainecompany.com/brochures/water.html#n028

Liquid Filtration and Media World Markets, click on: http://www.mcilvainecompany.com/brochures/water.html#n006

Pumps World Markets click on: http://www.mcilvainecompany.com/brochures/water.html#N019

RO, UF, MF World Market http://www.mcilvainecompany.com/brochures/water.html#no20      

Sedimentation/Centrifugation World Markets, click on: http://www.mcilvainecompany.com/brochures/water.html#n005                                                                   

Water and Wastewater Treatment Chemicals: World Market click on:

http://www.mcilvainecompany.com/brochures/water.html#NO26