Tuesday, January 19, 2010

Landed Costs for Water Storage Tanks Set To Rise in 2010

Water tank prices are set to rise in the coming months due to the increase in fuel transport and raw material costs. Many of Tank Depot’s manufacturers have been absorbing the price increases in these areas for some time now but with the onset of the slowing economy and tank sales down, many suppliers have indicated that there will be multiple across-the-board price increases throughout 2010 and, foreseeably, into 2011.

Recently, the interest in rainwater harvesting has grown. People around the world are aware of how important it is to store the surface runoff water to meet the demand for this precious and natural resource by the growing world population. This technique is not new and people have been effectively storing rain water down the ages for more than 4,000 years!

Here in the United States, we have only just recently realized the consequences that we will be facing due to a forecast of extended drought periods across much of the USA. The effect of the drought in rural areas has filtered down to the urban areas with many of our cities now affected by strict water restrictions; from Los Angeles to San Diego, across the US to San Antonio and even south Florida. Water restrictions are now something every home owner will have to get accustomed to as population growth and global warming over-stretch our ever precious water reserves.

In addition to these water restriction measures, many municipalities are introducing water conservation programs like rebates on rainwater harvesting, dual-flush toilets, smart irrigation controllers, high-efficiency close washers, etc. The localities are constantly reviewing the effectiveness of these programs and searching for ways to increase their scope. Several of these programs created such a large response, the funds allocated for these programs have already been depleted. The rebates were introduced to try to encourage the consumer to take responsibility for their own non-essential use of potable water. It is far easier and cheaper for the governments to make everyone get rainwater tanks than for them to build new dams, not to mention better for our environment and not flooding so much precious land and forests and altering the natural flow of rivers. There are now regulations in place for new developments to install water tanks as part of their basic requirements and it is likely that some local authorities will continue to look to Australia for guidance (Australia has had a 20 year head-start on water conservation due to severe droughts). Our bets are that with in the next two years, either Tucson, AZ or Santa Fe, NM will be the first in the US to require a rainwater collection system be installed before approval is given to build a new pool.
The introduction of the water tank rebates sparked a boom in the rainwater catchment industry with many now global warming conscious people jumping on the environmental band wagon and installing a water tank. The water tanks market has now been flooded with tanks and under cutting within the market is now prevalent. This has been a windfall for Tank Depot’s consumers but not for our struggling manufactures. A small handful of US manufacturers and resellers have now closed their doors due to too much competition, however, all the low prices experienced by consumers over the past few years are set to rise with fuel and raw material prices rising dramatically over the last few months.

If you are contemplating investing in water tank now is the time to act and do some research. Put it off for too long and you will be paying a lot more very soon.

1 comment:

  1. I had better run right over and purchase my tank from http://www.plastic-mart.com right now before prices go up.