Xylem demonstrates dewatering credibility in Germany
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Xylem demonstrates dewatering credibility in Germany

Two months ago, we detailed some new research that showed “extreme precipitation” (very heavy rain) was increasing due to climate change, and that this heavy rainfall would lead to a rise in flooding (you can read the article here). This is worrying news, but it makes international water technology company Xylem Inc. an interesting prospect for investment: Xylem is the expert when it comes to solving water crises of any and all varieties.

Globally relevant: In 2016, Xylem returned almost 40% for investors

 xylempng

SOURCE: Yahoo Finance

Even on the off-chance that (like the current U.S. president) you are skeptical of climate change, it is an established fact that rainfall is increasing: in 2014, the UK suffered its heaviest rainfall in 248 years, and flooding cost the country an estimated £1.1 billion in damages. Similar scenarios are occurring across the globe. And a recent incident in Germany shows just how effective Xylem’s solutions can be.

Rainwater flooded a new complex of 111 apartments in Lerchenberg, a district of Mainz in Germany. The flood hit while construction was underway, meaning a new connection to the public sewer system was needed to dispose of the water. However, it wasn’t just the apartment complex that needed draining – many of the surrounding buildings (including the police station) were similarly flooded.

When the contractor realised that, to finish construction, it would need to pump 500 liters of water per second into the sewer for the duration of the project, it did not hesitate to employ Xylem’s rental pump service in Grossostheim. Not only is Xylem one of a very few companies that could answer such a call, but the speed and efficiency with which it reacted makes it an industry-leading solution.

As rainfall and flooding increase year-on-year, the long-term case for holding Xylem has, at least so far, increased with it.

Disclosure
Dominion holds Xylem Inc. in its Global Trends Managed Fund.


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