Profitable opportunities remain in $600-billion water industry: Lux Research

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Profitable opportunities remain in $600-billion water industry: Lux Research

New entrants inwater industryare bringing emerging technologies that will disrupt the industry and create new opportunities, according toLux Research. Despite a drumbeat of pessimism, the $600 billion water industry boasts of a sizeable number of profitable large companies.

A review of 150 companies across the value chain - representing 23% of the market - found average operating profit of 12.9%, torpedoing claims that it is impossible to make money in the water business. Customer-facing sectors in public service and small consumer systems do even better, clocking 14% profits.

"To read recent headlines in the water industry, one might think the sector is impossible to navigate, but that could not be further from the truth. By targeting worthwhile market sectors and keeping in mind some key sector-specific principles, a company can build a successful business," said Brent Giles, Lux Research Senior Analyst and the lead author of the report titled, ‘Making Money in the Water Industry'.

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