Ecolab Poised for Long-Term Growth From Water Filtration Demand and Strong Customer Switching Costs

Ecloab is the global leader in the cleaning, sanitation, and water management industries. For example, it provides products that help its hospitality and food-service customers do laundry and wash dishes. With unmatched scale and a solid razor-and-blade business model, Ecolab's competitive advantages are firmly in place. The company's cleaning and sanitation scale dwarfs the competition. Ecolab generates over double the revenue of its largest rival. Ecolab controls roughly 9% of the $152 billion global market. Its industries are fragmented, with many markets made up of regional and local competitors. The company is an attractive partner to global hospitality, food-service, and manufacturing firms. We think that it will continue growing from market share gains and expansion into new end markets.