Filtration Industry Analyst

MARKET REPORT: Filtration Media Market

The world market for filtra- tion media is expected to rise from US$17 billion in 1998 to over US$75 billion in 2020, according to a new report form The McIlvaine Co - World Filter Media Market in 2020.

The company predicts that population growth, gross domestic product (GDP) and technical and sociological fac- tors will affect the market for filtration media. In a possible scenario of low growth the market could grow to around US$34 billion. However, in a high growth situation, driven by biotechnology and electron- ics markets, the filter media market could potentially grow to a US$1.4 trillion business over the next 20 years.

Though these two scenar- ios could potentially occur, the most likely result is a 341% growth to revenues of US$75 billion, in a market which includes finished filter ele- ments used in dust collectors, air filtration, liquid cartridges, membranes, mobile filtration and liquid macrofiltration.

World Filter Media Market in 2020 expects tremendous differences in growth rates between the power industry, with low growth potential, and the pharmaceutical industry with huge growth prospects. With the present severe limits on CO, emissions the power segment could actually decline from the present level of US$834 million. The pharma- ceutical and biotechnology segment could grow from its present level of US$2.2 billion to nearly US$700 billion in the period covered by the report, however, it is most likely to rise to US$l.5 billion.

The biggest variables over the next 20 years are techno- logical and sociological fac- tors, not wealth or population.

Technical breakthroughs in the electronics industry could cause the filtration market in electronics to rise from US$822 million to US$410 billion. If these breakthroughs do not take place the market might only reach US$4.2 bil- lion Population growth during the next 20 years is likely to increase by between 20-60% on today’s levels and GDP is expected to range from 1.6-3 times current levels.

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Air filtration in homes and commercial buildings present- ly accounts for 9% of media sales but substantial growth is likely as health benefits of clean air provide an incentiv for larger filtration investment

Municipal wastewater fil tration currently accounts fo only 1.5% of filter media sale> This percentage is unlikely tg increase substantially but th absolute growth is expected tl be positive as a result of th’ expanding Asian market an the increased practice of recy cling wastewater.

Heavy industry and min ing, which used to account fo most filtration revenues, arl now even smaller segment and will continue to lose sharl over the next two decades Water “uPPlY presently accounts for 7% of the tiltra tion media sales, but that per centage could double over thl next 20 years, as desalination is used more and more to pro vide drinking water.

For further details on World Filter Media Market in 2020 contact: The Mcllvaine Co 2970 Maria Avenue Northbrook IL 60062-2024 USA Tel: +l 847 272 0010 Fax: +l 847 272 9673

January 2000

ECONOMIC REVIEW

Latin America’s economic recovery will be gradual in 2000, with the region’s gross domestic product expected to grow by 2.7% before increas- ing to 3.5% in 2001, accord- ing to a new report published by the World Bank.

The Bank’s annual Global Economic Prospects and the Developing Countries 2000 suggests that following a two- year slump, Latin America’s turnaround, will be driven by growing world trade, sta- bilised and rising commodity prices, a gradual return of cap- ital flows, as well as lower domestic interest rates and reduced debt servicing costs.

Over the last two years, Latin American GDP growth fell from 5.4% in 1997 to 2.1% in 1998. By the fourth quarter of 1998, the World Bank says Argentina, Brazil, Chile, Colombia, Ecuador, Peru and Venezuela were all experienc- ing recessions. The Asia crisis, as well as the Russian eco- nomic difficulties in August 1998, contributed to this downturn. These events trig- gered reduced export prices and volumes, along with a drop in capital flows. These external forces, combined with deep-seated domestic prob- lems in many countries, pushed growth rates down. GDP is expected to fall by an estimated 0.6% in 1999.

The report says that short- term risks remain. These explain why the recovery is expected to be moderate in 2000, when compared with the 1996 turnaround. Fiscal tight- ening is still required in many countries, the study warns, and the savings rate remains low across the region. Resistance to needed economic reforms is surfacing in some countries, presenting political challenges to governments as they face

elections, divided legislatures and difficult policy choices.

Long-term growth pros- pects for the region remain favourable, with 3.5% growth expected for 1999-2008, as efficiency gains from past reforms, including privatisa- tion and liberalisation of trade, take effect.

EXCHANGE RATES AGAINST THE US DOLLAR

Date: 10 December 1999

COUNTRY RATE

Australia

Austria

Belgium

Canada

China

Denmark

Finland

France

Germany

India

Italy

Japan

Malaysia

A$157

Schl3.54

BFr39.69

C$1.48

Rmb8.28

DKr7.32

FM5.85

FFr6.45

DM1.92

Rs43.48

L1905.12

Y102.30

Rt3.80

Netherlands Fl2.17

Norway NKr7.98

Philippines Peso40.75

Singapore S$1.68

South Africa R6.12

South Korea Won 1132.65

Spain Pta163.70

Sweden SKr8.46 Switzerland SFrl.57

Taiwan T$3 1.62

Thailand Bt38.61

UK f0.62

USA US$l.OO

Euro EO.98