Stuart Henry Principle Aqua Global Consultants LLC Indiana, USA

Stuart HenryPrinciple

Aqua Global Consultants LLC

Indiana, USA

A STREET LEVEL VIEW OF THE USA

Plumbing Supply Forum Sydney, Australia

Tuesday, 29 May 2012

Greater Lafayette Demographic

Lafayette

67,140

West Lafayette

29,596

Tippecanoe County

172,780

Tippecanoe labor force

81,595

Population

Lafayette Industry (Amounts represent number of employees)

Wabash National

4,300

Subaru of Indiana

3,550

Caterpillar Large Engine Centre

1,800

Fairfield Manufacturing

1,200

Purdue University

• 39,637 students

• Including 7,934 international students

• 15, 376 staff and lecturers

• Spends approximately US $420 million pa on R&D

• 2010 – 2011 received 98 global patents

• Economic impact on Indiana – US $42 billion

annually

West Lafayette Campus

The Mid – West12 States

Illinois Michigan North Dakota

Iowa Minnesota Ohio

Indiana Missouri South Dakota

Kansas Nebraska Wisconsin

Total population 66,927,001

Mid West Economy

• Manufacturing

• Food Processing

• Agriculture

• Logistics

• Industrial and Agricultural Biotech

Main Contributing Sectors

The Mid West Represents:

• 25% of the US economy

• 25% of the population

• Home to 25% of Fortune 500

companies

• The world’s 5th largest economy

DEMOGRAPHIC PROFILE (July 2011 est.)

Australia USA

Population 21,766,711 313,232,044

Growth Rate 1.148% 0.963%

Birth rate 12.33/1000 13.83/1000

Net Migration rate 6.03/1000 4.18/1000

Australian GDP

US GDP

Annual Average Earnings

• USA 2010:

US $41,673.00 pa

2.36% higher than 2009

• Australia 2010/2011:

AUD $66,690.00

4.2% higher than

2009/2010

Product America  

Metric Australia 

Imperial Chicken,

wholeorganic

$1.09/lb$1.99/lb

$2.27/kg4.39/kg

$8.28/kg $3.76/lb

T-Bone steak

Sirloin steak

$11.99/lb

$11.99/lb

$26.43/kg

$26.43/kg

T-bone: $19.90/kg $9.03/lb

Bananas $0.56/lb $1.23/kg $3.89/kg $1.76/lb

Cereal Kellogg’s cornflakes: $3.44/510gm

1.48c per gram Kellogg’s cornflakes:$5.44/725gm/1.33c/gm

Peanut butter $3.5418 oz

1.44c per gram $8.00800gm/1c/gm

Eggs $2.79/dozen   $3.69/dozen  

Milk $3.09/gl 0.82c/l  $2.48/2l$1.24/l

$4.69/gl 

White breadWheat bread

$1.49/loaf$1.79/loaf

 $2.48/loaf$4.83/loaf

Beer $17.99 (Budweiser)   $37.99 (Victoria Bitter) 24-12 fluid ounce bottles 

Petrol $3.73.9/gl 99c / l $1.49/l $5.64/gl

Homeownership Drives the U.S. Economy

• The nation’s housing and homeownership policies over the last century

have contributed to the growth of the middle class and the United States

economy

• 15% of the U.S. economy relies on housing and nothing packs a bigger

local economic impact than home building.

• Constructing 100 new homes creates more than 300 full-time jobs,

$23.1 million in wage and business income

and $8.9 million in federal, state and local tax revenue.

• A healthy housing industry means more jobs and a stronger economy.

Home building increases the property tax base that supports local schools

and communities

Housing Continues Rebound

• 30% increase in sales, February 2012 from

February 2011

• Days on the market fall from 131 to 108

• Median sale price falls by 13%,

$120,000 in February 2011 to $104,725.00 in

February 2012.

Foreclosures

Since September 2008 there have been 3.5

million completed foreclosures

• March 2011 85,000

• March 2012 69,000

• 1st quarter 2011 232,000

• 1st quarter 2012 198,000

Economy

• 1 in 4 homeowners underwater, owe more

than their home is worth

• GFC has wiped out more than $7 trillion in

household wealth

• House prices down 34% since 2006

• Interest rates – 30 year fixed mortgage at

3.88%

Housing

• New Housing starts rebound in April

• Housing starts increase 2.6% to an annual rate of

717,000

• Confidence among homebuilders at 5 month high

• 1st quarter 2012 residential construction grew at

fastest pace for 2 years

• Will contribute to economic growth for the first

time since 2005

Housing

Bathrooms Top Kitchens as Most Popular Remodeling

Projects

• Special questions included on National Association of Home

Builders’ Remodeling Market Index (RMI) survey show that

home owners remain interested in updating the most heavily

used rooms in their homes, including bathrooms and kitchens.

PSF 2010 –David Hagopian, USA

• Predictions for the Housing sector 2012 - demand is expected to be 1.9 to 2 million housing units.

 • Also affecting the plumbing and

construction sector are; - the new lead laws, - water efficiency targets. • PMI supports national legislation to

harmonise requirements for lead in plumbing products

• The USA national lead law takes effect January 2014

• The bill was drafted and supported by PMI to harmonize California standards throughout the USA

• PMI was successful in convincing Louisiana, Vermont and Maryland to adopt the 0.25% level instead of their own different  levels as proposed.

• Some other entities (water utilities and non-PMI members) have been caught off-guard.

• PMI will participate in a panel discussion at the June AWWA conference to outline steps taken by manufacturers to comply by the prescribed deadline

• PMI would like to see improvements to infrastructure to replace lead service lines to reduce lead in water  

Lead

• PMI supports water efficiency—getting the job done with less water, NOT merely cutting back the amount of water used (conservation)

• PMI supports consumer choice and opposes mandates

• PMI supports educating the consumer to encourage positive behavior change.

• Water efficiency is a shared responsibility—not just that of manufacturers.

• In areas moving to lower flow rates, PMI supports harmonizing with high-efficiency Water Sense approved products… reducing flow by 20%

Water Efficiency

Thank you for your attention

Appreciation and thanks to:

Mr. Roger Price, Consul General, Australian Consulate, Chicago;

Mr. Scott Adlington, Director of Investment, Midwest, Victorian Government Business Office

Ms. Barbara Higgens, Executive Director, Plumbing Manufacturers International, Rolling Meadows, Illinois

&