Ecolab Inc ECL

Ecolab Poised for Long-Term Growth as Strong Customer Switching Costs Drive Pricing Power

As the global leader in the cleaning and sanitation industry, Ecolab provides products that help its hospitality, food-service, and healthcare customers do laundry, wash dishes, and maintain regulatory compliance. With unmatched scale and a solid razor-and-blade business model, Ecolab's competitive advantages are firmly in place. The company's cleaning and sanitation scale dwarfs the competition. Ecolab generates over double the revenue of its largest rival. Its industries are fragmented, with many markets made up of regional and local competitors. Ecolab controls roughly 9% of the $152 billion global market. With its unrivaled scale and product portfolio, the company is an attractive partner to global hospitality, food-service, and manufacturing firms. We think it will continue to grow from market share gains and expansion into new end markets.