With all of the attention paid to oil and coal reserves, and renewable energy sources, the availability of fresh, clean water has become a background issue. But think tank CERES sounded an alarm recently that  shortages of water will increase costs significantly for industries such as biotech, pharmaceutical and metals and mining, which rely on this natural resource. A CERES reports also cautions that water shortages could lead to global political and economic instability.

To capitalize on this problem, investors and entrepreneurs are developing improved desalination technology. By treating seawater with processes such as reverse osmosis, the looming water shortage could be postponed indefinitely.  Several firms operating in this market manufacture components to bring new facilities online, globally. Company names in the industry currently include Energy Recovery and Flowserve. Look for more companies to research and introduce products designed to ease water shortages and as they do, they’ll need strong marketing campaigns to educate and persuade potential purchasers.

[Sources: Water Scarcity & Climate Change, Ceres, Spring 2009; Hoyt, Jennifer. "Firm Bets Big on Desalination," Wall Street Journal. 5.6.09.]

Long before boxes of cereal or cookies land on the shelves at the local grocery store, manufacturers have spent significant sums on trade promotion management. The goal of these expenditures, which approach 14% of revenues according to some surveys,  is to influence retailer behavior. Specifically, trade promotions encourage retailers to take steps to increase sales of manufacturers’ products.

Trade promotions attempt to influence retailers to:

• Carry specific products
• Devote a set amount of shelf space/location to the products
• Set a specific price for the products

While manufacturers and retailers may be cutting some advertising budgets, manufacturers have a different plan when it comes to trade promotion spending in 2009 as revealed by a recent Consumer Goods poll:

• Decrease slightly over last year 33%
• Stay flat from last year 25%
• Increase more rapidly than previous years 20%
• Increase at the same pace as previous years 18%
• Decrease significantly from previous years 5%

The survey results indicate that firms are still willing to spend on trade promotion and they are also looking for systems to help them identify opportunities for improved efficiency and to measure return on investment. Share the results of this survey with your management consulting clients and develop a pitch to consumer goods manufacturers that allows them to increase sales along with trade promotion spending.

[Sources: Trade Promotion Management, Accenture, 2008; Trade Promotion Management, Consumer Goods Today, 5.1.2009]

Are venture capitalists still investing in green technology? The short answer is yes. The more interesting long answer was recently provided Greentech Media’s study on the industry. Companies closed 59 deals worth $836.1 million during Quarter 1, 2009. If investment levels annualize at the same rate, we could see over 230 deals worth about $3.3 billion in 2009. Though this represents a steep drop from 2008 activity, large venture capital firms believe this industry promises significant opportunities for healthy returns on investment.

Here’s how investments were made, top percentages of the total,  in the green tech sector during Quarter 1.

• Solar 42.7%
• Batteries/Fuel Cells/Energy Storage 14.5%
• Ethanol/Biofuels/Gasification 11.3%
• Automotive/Transportation 9.7%
• Wind/Ocean 6.9%

Despite the slowdown from last year, deals are still being made. Products are coming to market and experts predict healthy growth in 2010 and beyond. Even better, companies will need ad campaigns to brand themselves and their offerings. Now might be the best time to position your agency as one with green expertise.

[Source: Venture Capital Investment in Renewable Energy, Greentech Media Release, Venture Capital Reporter, April 2009]

The war in Iraq may be winding down but the U.S. military is facing nimble foes as it shifts focus to Afghanistan. In addition, the defense department has come up against serious budget limitations as military officials develop for warfare strategies for the next decade. These challenges have officials thinking small – especially when it comes to weaponry.

Secretary of Defense Robert Gates recently noted that the Navy will require smaller faster ships in order to engage with similarly equipped foes who are able to quickly maneuver through the water. And the U.S. military is increasingly turning to unmanned aerial vehicles. (UAV). Out of the 5,000 UAVs owned by the military, at least 3,500 are in use in Afghanistan and Iraq. A report released by Booz Hamilton notes that during the current surge, the military has turned to private contractors to build and supply small weaponry including drones equipped with missiles.

The defense department’s budget is currently under scrutiny and it’s too soon to know exactly what types of contracts will be released for bid in the near future. However, if you are working with clients who are interested in doing business with the military, you can expand their options by helping them become qualified bidders and responding to requests for proposal. Large contracts sometimes contain set-aside clauses which are designed to help small and minority owned businesses obtain subcontracts. Innovative hardware and software designers who start out as today’s small business providers can position themselves as preferred suppliers for the next generation of weaponry.

[Sources: Drew, Christopher and Bumiller, Elisabeth. Military Budget Reflects a Shift in U.S. Strategy, New York Times, 4.6.09; Unmanned and Robotic Warfare, Booz Allen, 2008]