Vertical Water Tanks: A Strategic Play in the Water Scarcity Crisis

The global water scarcity crisis is no longer a distant threat—it is a present reality, with the World Bank estimating that 40% of the global population faces water scarcity today. Against this backdrop, Myers Industries (NYSE: MYE) has positioned itself as a critical player in infrastructure resilience through its subsidiary Elkhart Plastics, which recently launched Vertical Water Storage Tanks. This product line, designed to address commercial and residential water storage needs, represents a strategic pivot for Myers—one that aligns with its long-term vision of leveraging innovation and operational scale to capitalize on sustainability-driven demand.

The Product: A Solution Rooted in Durability and Efficiency
Elkhart’s Vertical Water Tanks are engineered to withstand the rigors of environmental exposure and long-term use. Constructed from UV-resistant, FDA-approved high-density polyethylene (HDPE), they offer a 10-year warranty and are available in capacities from 1,000 to 3,000 gallons, with plans to expand sizes further. Key features include dual manway lids for secure access, integrated air bleeds to accelerate filling, and a reinforced “tough tank top” designed to resist thermal stress. These attributes position the tanks as a cost-effective alternative to traditional steel or concrete solutions, appealing to markets ranging from agriculture to municipal fire suppression systems.

Strategic Alignment: Myers’ Three-Horizon Vision
The tanks are a direct manifestation of Myers’ strategic priorities, outlined in its three-horizon framework:
1. Horizon One (2023–2026): Focus on organic growth and operational excellence.
2. Horizon Two (2023–2026): Expand mergers and acquisitions (M&A) to include larger, enterprise-level deals.
3. Horizon Three (2026–2029): Target global expansion and new verticals.

Elkhart’s water tanks fall squarely under Horizon One, leveraging Myers’ rotational molding expertise—a core competency—to address a growing market. Meanwhile, Horizon Two’s M&A focus could amplify this effort by acquiring complementary businesses in water infrastructure or related technologies, accelerating market penetration.

Market Opportunity: Water Storage as an Infrastructure Priority
The global water storage market is projected to grow at a 5.2% CAGR through 2030, driven by urbanization, climate volatility, and regulatory mandates for water conservation. In the U.S. alone, the American Society of Civil Engineers estimates a $34 billion investment gap in water infrastructure by 2029. Elkhart’s tanks are positioned to capture this demand, particularly in regions like the American Southwest and California, where droughts have intensified the need for decentralized water storage.

Myers’ entry into this space is bolstered by its existing distribution network and dealer partnerships. The company’s emphasis on sustainability—highlighted by Cullen Jones, Myers’ VP of Sales—also resonates with ESG-focused investors, a demographic increasingly influential in capital allocation decisions.

Risk Factors and Considerations
While the strategic rationale is compelling, risks remain. Competitors like Aqua-Tank and Water Tanks Direct offer similar products, and price competition could pressure margins. Additionally, regulatory hurdles—such as zoning laws for commercial water storage—might limit deployment in certain regions. Myers’ success will hinge on its ability to scale production efficiently and maintain quality standards, particularly as it expands tank sizes and explores new markets.

Conclusion: A Calculated Bet on Resilience
Myers Industries’ Vertical Water Tanks initiative is a shrewd move to capitalize on a structural demand trend. With a product line that balances durability, cost efficiency, and scalability, the company is well-positioned to serve a growing market. Financially, Myers’ stock (MYE) has outperformed peers like Lindsay Corp. (LNN) by 12% over the past three years, reflecting investor confidence in its strategy.

Crucially, the tanks align with Myers’ broader vision of operational and strategic agility. By combining organic growth (via Elkhart’s product innovation) with M&A-driven expansion, the company aims to transform its Material Handling Segment into a high-growth engine. With water scarcity expected to displace 700 million people by 2030 (World Resources Institute), the timing could not be more urgent—or lucrative—for Myers’ vision.

Investors seeking exposure to infrastructure resilience and sustainability-driven growth would do well to consider Myers Industries. Its Vertical Water Tanks are not merely products; they are stakes in the ground for a future where water is both scarce and indispensable.