South American Market for Process and Environmental Equipment Predicted to Grow
The demand for Brazilian ethanol and Chilean metals are two of the reasons that healthy growth is forecast for process and environmental equipment in Latin America. The market for pumps will grow from just under $2 billion this year to $2.8 billion in 2010 in all countries of the Americas with the exception of the U.S. and Canada, according to the latest online forecast in the McIlvaine report, Pumps: World Markets. Annual sales of valves in Latin America will rise from $3.2 billion to $3.9 billion by 2010, according to the McIlvaine online report, Valves: World Markets.
In general, industries using process and environmental equipment are growing in Latin America. In Brazil, manufacturing rose from 39% of GDP in 2004 to 40% last year. Latin American GDP is expected to rise 3.6% this year compared to only 2% for Europe. GDP in Latin America will rise from 8% of global GDP this year to 8.5% in 2010 (according to the McIlvaine report, World Market for Your Products).
One of the biggest potential markets for process and environmental equipment in Latin America is in municipal wastewater treatment. As shown in the following chart excerpted from World Market for Your Products, the percentage of municipal wastewater, which is presently receiving secondary treatment, is less than 12%. Therefore, the upgrading of existing primary treatment plants and the construction of treatment plants where sewage is now directly transported to waterways represents many billions of dollars potential in process and environmental equipment.