Show r i Babson Water Pollution ion I The market for water pollution control has been estimated at 26 billion to I 29 billion over a year five period HOWEVER present appropriations appropriations appropriations ap ap- ap- ap for the war on pollution are but a trickle of the enormous spending on Vietnam and there is no assurance that the cessation of hostilities would mean that water pollution pollution pollution pol pol- lution control would be the first order of business for forthe forthe forthe the government Also technology in this area is by no means perfected perfected perfected per per- and further developments developments developments develop develop- ments seem to be awaited des despite ite the pollution crisis The Culprits THE THREE major sources of water pollution are agriculture agriculture agriculture agri agri- culture industry and Anywhere from 30 percent to 90 percent of the water for irrigation is con con- The remainder is polluted by irrigation return and by fertilizers herbicides pesticides pesticides pesticides and soil erosion OVER 40 percent of the country's total water use is accounted for by farming Industry accounts for 50 SO percent percent percent per per- cent of the total water usage but by 1980 this may rise to 65 percent Of the water used by industry industry in in- 47 percent to 48 percent percent per per- cent is returned to the water supply and used again Two Two- thirds or more is used for cooling Industry it is estimated estimated esti esti- estimated mated discharges twice as much organic waste into water courses as municipalities MUNICIPALITIES are discharging discharging discharging dis dis- dis- dis charging raw untreated sewage sewage sewage sew sew- age into water courses at an incredible rate per year Usage e of water by the nations nation's com coin communities accounts for a mere mer e seven percent to eight percent of total water use but contributes contributes contrib contrib- utes heavily to the overall water pollution problem Cleaning Up The Mess In order to control or reverse reverse re re- r verse water pollution three thre e processes can be utilized 1 Settling screening and straining strain ing poll pollutants tants 2 coagulation precipitation and other chemical chemical chemical chem chem- ical processes to remove 90 percent of the organic compounds com coin S pounds 3 distillation reverse revers e osmosis an and d coagulation to ferret out th the e I inorganic materials BOILING these technicalities down to size companies involved involved involved in in- in water treatment through specialty chemicals water ser serC servicing C ng and processes of desalination desalting should be the most immediate beneficiaries of the water pollution programs when spending spending spend spend- spending ing is accelerated particularly particular particular- ly those in the industrial waste field At least companies are in the water pollution control business Of these only a small number are publicly own own- ed Moreover an even smaller number are immersed in water pollution control to any significant extent THE MAJORITY of the companies are well diversified in other activities and many of these are subject to the cyclical influence of their respective respective respective re re- business sectors Prime Participants The Research Staff of Babson's Babson's Bab Bab- Babson's sons son's Reports has concluded that the industrial waste water treatment and household conditioning conditioning con con- conditioning segments of this fragmented fragmented fragmented frag frag- field offer the largest market and growth potent potential al THUS mus WE would focus upon specialty chemical companies with large research and development development de de- development emphasis and a hi high degree of consultation and technical service Chemical use in water is expected to double in five years and double again in the following five years providing a 15 percent annual growth rate Attractive Investments TIlE THE LEADERS in the field favored by the lice Research Staff of Babson's Reports are Nalco Culligan and Betz Bet Laboratories In our judgment term near opportunities for investment purposes are limited We believe believe be be- lieve that investors should seek only term long-term capital two gains or 01 more years in select companies with in in- depth capabilities in the water water- treatment sector of this emerging field |