The LACER study used a two-tiered framework to investigate total employment, with tier one industries being directly related to water industry, and tier two being industries that are impacted by water, such as landscaping, architects, or wholesale chemicals. To understand an industry’s regional intensity, economic geographers often use locational quotients of sectoral employment. Various government agencies compile economic data and use the North American Industry Classification System to classify business establishments according to sector, or type of economic activity. An industry locational quotient compares the number of people employed in an industry in a region with the national employment average. A location quotient of “one” will mean that a region has exactly the same number of people as the nation as a whole. A high location quotient means that the region has many more people employed than the national average. For example, Hollywood is Southern California’s most famous industry cluster as the nations employment in the motion picture and video production industry—NAICS code 51211—generates a location quotient of a 12.8, meaning that the region has 12.8 times the national average for employment in the industry . In 2010 nationally, there were 197,627 employed in the motion picture and video production center. The Los Angeles MSA alone had 101,439 employed in the local MSA . An MSA is a Metropolitan Statistical Area, which is in this case spans from Santa Ana to Los Angeles. In comparison to motion pictures,blueberry grow pot the highest concentration in water related fields is 2.5 in electronics manufacturing, and plastics materials wholesaling respectively.

Neither of those are very central to the water industry, although electronics manufacturing does include control instruments used in the water industry . Even the next highest, fluid power and hose fitting, is only tangentially related to water as most manufactured parts are used in motor assembly. The region does, however, have a very strong presence in sewage treatment facilities, and plastics product manufacturing, which are both important to water technologies. My investigation of the Los Angeles CSA excludes the San Diego Region, where presumably the industry is just as strong, if not stronger. For example, an estimated 3,000 people work for companies in the San Diego area supplying equipment or logistical support just for desalination plants alone . The San Diego desalination industry earns an estimated $350 million in annual revenues . The global water reuse industry really took off around the year 2000, with global capacity nearly quadrupling by the year 2010. The industry analyst group, Global Water Intelligence, forecasts that reuse capacity will double again by 2016 and grow nearly 20% annually . Globally, half of all reused water is used for outdoor purposes: agriculture , landscaping , and environmental restoration . Industry follows with 20% of reused water, followed by various non potable uses . Less than 3% is used for drinking water . In sheer volume, the United States is the global leader, reusing 14% of its wastewater. Followed by China who also reuses roughly 14%, but only half the quantity. However in percentage of use, Kuwait and Israel dwarf the world, reusing 91% and 85% respectively. They are followed by Singapore , Egypt , Australia . Like the water industry itself, the water reuse industry is a difficult one to narrowly define. Obviously, the industry has a very close overlap with the wastewater treatment industry.

In addition to the water and wastewater utilities, there are the various service providers and the miscellaneous material suppliers , and also the speciality suppliers of specific physical and biological wastewater treatment equipment. In today’s world where many utilities are often privately run, there are also firms that operate the treatment plants, such as Berlinwasser International, CH2M Hill OMI, Metito, Suez Environment, United Utilities and Veolia Water. In this investigation of the innovation systems I have chosen to focus on the engineering firms involved in the building wastewater treatment complexes and the specific manufactures and suppliers of the advanced wastewater treatment systems necessary for urban water reuse. For it is these firms that are at the forefront of water reuse innovation.Here I wish to discuss the most important ones which take place in the advanced processes of the tertiary and quaternary treatment stages which are necessary for water reuse. These are the heart of the water purification process and the firms which manufacture these materials will be global winners as the industry grows. In order to identify these firms, I have loosely classified them under the following three categories: advanced membrane manufacturers, advanced disinfection manufacturers, and advanced wastewater supply firms . The major technologies involved in advanced membranes are Microfiltration, Reverse Osmosis, Nanofiltration, and Ultrafiltration. Microfiltration is a separation process that uses polypropylene hollow fibers—essentially tiny straws—to filter the water. Reverse Osmosis membranes are made of semi-permeable plastic polymer and water is forced through under high pressure. Nanofiltiration is similar in that it relies on osmosis but uses even smaller filters than microfiltration. Electrodialysis is an electrically-driven technique that can be used at the tertiary stage and is often employed in desalination plants.

Disinfection tools, such as high-intensity ultraviolet light, and chemical methods, like hydrogen peroxide, disinfect and destroy any trace organic compounds that may have passed through the reverse osmosis membranes. Engineers who may read this report will likely be disappointed at these gross simplifications, and omissions of other important technologies relevant to the water reuse process. They might also note that there are many more exciting emerging technologies currently being researched at labs throughout the world. It is highly likely that some of these emerging technologies will revolutionize the industry, but I am interested in the odds that those technologies might be developed here in California. The following table identifies the leading global water reuse technology manufacturers and suppliers. As one might expect in a highly urbanized dry region with large endowments of physical and human capital, Southern California has a fairly vibrant water technology industry. Over half of the 30 leading reuse technology suppliers,hydroponic bucket have a direct local presence in the state and many more have formed partnerships with local firms or distributors. Industry analysts have estimated that there are over 3,000 people working in the southern California region that supply or support water reuse or desalination equipment. The industry brings in over $350 million in annual revenues . At least six of the major firms—Siemens Water Technologies , Trajan Ultraviolet , Hydronautics, and Xylem, Pall Corporation, and Koch Membranes—have facilities within the state. Interestingly though, Hydronautics, is the only major firm with headquarters in the state, located in Oceanside. Advanced disinfection technology leader, Trajan Technologies, also operates the local Aquafine Corporation. Trojan purchased local US Peroxide, LLC of Laguna Niguel, California in 2003 . The ITT corporation spinoff, Xylem—named for the plant tissue water transport system—specializes in fluid technologies and also operates multiple facilities in Southern California. Most notably, the global behemoth Siemens Water Technologies was actually a local firm until relatively recently. The company that became US Filter was founded in El Monte, California in 1953 . US Filter was one of the first major water industry conglomerates, acquiring over 60 companies before being purchased by French giant Vivendi. In 1997, US Filter became the United States’ first billion-dollar firm specialized in water and wastewater treatment systems . At the time, Fortune magazine ranked USF among the 100 fastest-growing companies in the world, with compound annual revenue growth of 66% between 1991-96. In turn, it was sold to Siemens in 2004 . The headquarters was then moved to Pennsylvania. The company still has major operations in California, but it is noteworthy that the firm’s major new global water research and development facility is being developed in Singapore, rather than California . Many of the largest global technology conglomerates—including Siemens Water Technologies, but also GE Water, Veolia, and most obviously the new $3.2 Billion water focused firm Xylem, have made water reuse central to their business future. The name Xylem literally means the part of the plant that draws water from the ground. Some analysts speculate that trusted global brands like GE or Siemens will reassure the public that water reuse is a safe technology . These firms will also likely lower the cost of water reuse technologies which will further accelerate the growth of the market. Several engineering firms, notably CDM and MWH Global, have also focused their operations on becoming the market niche leaders. Both firms were involved in the construction of GWRS. The international market is highly fragmented with many speciality contractor/consultants in addition to large numbers of local firms. Most large service firms rely on armies of local subcontractors to actually do most of the construction . There are a relatively small number of global leading firms which tend to dominate the large, or particularly complicated infrastructure projects, such as England’s Chunnel, or Boston’s Big Dig.

These market leading firms—and their employment base—tend to be concentrated in North America and Europe. However, with the rapid rise of the rest of the world, one can expect to see a growing diversity with more competition coming from abroad. Indeed, local firms in East Asia, the Middle East, and Latin America are already taking the largest share of their domestic projects, and are beginning to compete for projects in the US and Europe as well. California in particular, has a very high concentration of engineering firms. It would be an interesting scholarly investigation to document the creation agglomeration. It likely reflects the region’s early strength in major construction projects in mining, water, and petroleum industries. And of course, the region was an early home to major transportation networks such as railroads, ports, and the world famous freeway networks. The explosion of the defense industry in California coincided with the rise of the US global military domination—and California firms accompanied the military abroad to build major infrastructure projects. Of the five American firms that dominate the list, all have a strong history in California. For example, CH2M Hill became famous for its work on a Lake Tahoe wastewater project , and Fluor Corporation was founded in California before moving to Texas along with the oil industry . Interesting, neither of California’s largest global firms, Bechtel or URS Corporation are strong in water infrastructure projects, with Bechtel claiming zero revenue from either water supply or wastewater projects, and URS claiming less than $90 million in water related revenue—a far cry from the firm that made its name building the Hoover Dam . When looking at the largest water supply and infrastructure firms in the world, one may find that California continues to play a huge role. Seven of the top ten firms in water infrastructure have a presence in California, and nine of the largest wastewater infrastructure firms have offices in the state. In fact, the two largest wastewater firms, Los Angeles-based AECOM and Colorado’s MWH Global, have major offices in the state. MWH Global is a firm that has dedicated itself to the water infrastructure industry, with water and wastewater projects making up 43% and 41% of all revenue, respectively—over 80% of all firm work. This is very notable as MWH Global has a major water testing laboratory facility, MWH Laboratories, based in Monrovia in Southern California. The facility employs over 100 people and is the largest potable and recycled water focused laboratory in the country . Of particular importance to water reuse plant construction are AECOM, Arcadis, Black & Veatch, CDM, CH2M Hill, TetraTech, and MWH . AECOM and Tetra Tech are both based in Southern California while CDM, CH2M Hill, Black & Veatch, and MWH all have strong representation in the state. MWH Global has a major water testing laboratory in the state . Additionally, many slightly smaller local firms such as Brown and Caldwell or Parsons Corporation are still very important players in the water engineering market . Globally, water reuse projects are generally contracted and built using a design-build model where the project is owned and operated by the municipality . However, innovative financing agreements and Build-Own Operate , and Design-Build-Operate where the building firm own the facility, are growing in popularity . This will have implications for the engineering market as it would favor large multinationals that have operations expertise, such as Suez or United Utilities.