 Environmental Dynamics Inc. is focused on leveraging its logistics to grow its client base around the world. Chuck Tharp suggests the wastewater treatment industry isn’t rewriting scientific boundaries when it comes to technological advances. Companies such as Environmental Dynamics Inc. (EDI) still treat water with basic techniques and processes first introduced in the early 1900s. By applying material sciences, innovation, product development, and advanced technology, EDI delivers water treatment systems that best fit an end-user’s specialized needs while delivering value. “We’re in an industry that is application engineering-orientated rather than cutting-edge technology.” Tharp says. “EDI is becoming more focused and optimizing the performance of our products and systems, which gives us market leverage. Logistics is now just as important as product design.” After about $3,000 in sales during its first year in 1975, EDI grew to $32 million in sales in 2008 by offering its engineered aeration and biological wastewater treatment solutions. Today, EDI operates out of seven offices around the world, with the headquarters located in Columbia, Mo., in a 110,000-square-foot facility. Corporate offices house more than 100 employees managing day-to-day administrative, marketing, sales, application engineering, R&D, manufacturing, customer service and state-of-the-art testing services. Tharp took time to speak with U.S. Business Review about EDI’s climb to its position as one of the top players in the industry, its focus on logistics and EDI’s vision of the future. U.S. Business Review: What is the nature of the wastewater treatment business today?
Chuck Tharp: The wastewater treatment business is consolidating into fewer firms with total plant solutions. EDI is a specialist in aeration and biological systems technology. The market for EDI equipment and services is gradually shifting from end users, such as municipalities and cities, to support of major integrated firms installing total system projects. As the primary aeration technical recourse for these key accounts, it provides a major opportunity for EDI to utilize engineering resources. USBR: How are you leveraging this focus on logistics?
CT: EDI may have the best solution for someone in Australia, but if we can’t get it there, all of a sudden EDI lost the opportunity. As a result, we’ve been focusing on global logistics aspects to make our products or systems available globally in a timely manner. We also use advanced logistics as our opportunity to reduce material costs. For example, EDI recently acquired a company in the U.K. We are now capable of warehousing products like standard parts and system components and ship them into Europe without reducing profitability on smaller orders. If someone had a need in the past, we were always scrambling to supply the product economically. Now, EDI has engineering, warehousing, marketing and manufacturing in the U.K., manufacturing in China and Singapore, and two or three other [global] locations. USBR: What trends are currently occurring in the industry?
CT: Developing countries that are fascinated with low capital costs for equipment or systems, which is a completely different mindset from mature markets like Europe or the United States. Mature markets have a much greater appreciation of operating costs and long-term performance. If you played the same game in both places, you’ll lose both places, so we need to recognize this trend and apply our services accordingly. Interestingly, as markets mature the game changes. After the customers have purchased a few low price systems resulting in unsatisfactory performance, low cost is no longer good enough. There is a switch from concerns of capital cost to understanding the importance of long-term performance. This allows EDI to market quality and service that we can deliver as a value solution. USBR: How do you serve these two demographics differently?
CT: We have established three major market channels, one of which is the DiffuserExpress (DX) group. DX markets standard components that account for 30 percent of our sales. DX is geared toward those who know what they want, order off our catalog and away we go. Secondly, we have our Engineered Systems Group that provides extensive value added service on total solutions. Working with the customer and developing correct and unique solutions to their project is a large benefit. Lastly, we’ve launched a contract service division. This is a strong tool for EDI to promote installation, routine maintenance, and direct customer support. This is a major channel for future growth in EDI; currently it accounts for 5 percent of sales but really provides a major benefit to EDI and a close connection with customers for EDI. USBR: What is your vision of the future?
CT: EDI management sees many opportunities. There is a global awareness of the environment and the need for greater degrees of waste treatment. The opportunity to double, triple or quadruple EDI sales is there. |
