Environmental Consulting Services
Description
Companies in this industry provide advice and assistance to businesses and organizations on environmental issues. Major US-based companies include Tetra Tech and Veolia North America, as well as the environmental and consulting divisions of engineering and construction firms such as AECOM, Bechtel, and Jacobs. Other major companies outside the US include Arcadis (the Netherlands), ERM and RPS Group (both based in the UK), and WSP (Canada).
Worldwide, the environmental consulting market is forecast to reach about $75 billion by 2032, with a compound annual growth rate of 6.81%, according to Data Bridge Market Research. Growth is expected to come primarily from North America.
The US environmental consulting services industry includes about 10,000 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $16 billion.
COMPETITIVE LANDSCAPE
Demand is driven by the needs of businesses and government agencies to comply with new, existing, or anticipated environmental laws and regulations. The profitability of an individual company depends on its ability to accurately predict project costs and to secure contracts with large organizations such as the US government. Large firms have the advantage of providing a wide range of environmental expertise and can, thus, offer "one-stop shopping" for clients. Small firms are able to compete by specializing in regional markets or particular areas of expertise. The US industry is fragmented: the 50 largest firms account for about 30% of industry revenue.
PRODUCTS, OPERATIONS & TECHNOLOGY
Major environmental consulting services include environmental assessment (determining the environmental condition of a particular site), site remediation (cleaning up polluted areas), natural resource management (strategies for managing a particular environment), environmental auditing (determining an organization's environmental impact), waste management, and environmental policy development. Environmental assessment services account for about 75% of US industry revenue, followed by environmental consulting services for about 15%.
Firms tend to increase their service offerings with scale, as larger firms can afford to hire employees from a variety of specialties. Environmental consulting divisions of large engineering and architectural firms offer services that complement the product lines of those firms. For example, Bechtel, which often consults for energy production companies, has worked on projects designed to reduce emissions at power generation plants. Larger firms increasingly offer management consulting to help clients address complex issues such as climate change or incorporate elements of environmental, economic, or social sustainability into operations.
For companies involved in remediation, various technologies are used to treat and remove contaminants depending on site characteristics and the type of pollution. Excavation is the most common process for soil remediation and may involve aeration or bioremediation. Dredging is done to remediate soil under water. Contaminated ground water may be pumped and treated or undergo air stripping, in which contaminants are vaporized and then removed from the airstream. In many cases materials are added to polluted sites to bind with the contaminants to prevent further spreading. Oxidation, soil vapor extraction, and bioremediation are also common remediation techniques.
Some firms rely on one customer for a majority of their revenue; for many firms this is the government. Environmental consulting work is specialized and labor-intensive, and a high proportion of employees have bachelors or graduate degrees. The expertise of employees is what environmental consultants' clients pay for, and firms pay continual attention to attracting and retaining qualified employees. Employees range from engineers to biologists, ecologists, and planners.
Environmental consulting firms work based on contracts, which take multiple forms. Cost-plus contracts require clients to pay a fee plus reimbursement of expenses. One type of cost-plus contract includes an incentive for finishing a project early or under-budget. Time and materials contracts require payment on an hourly basis, which can change based on the scope of the project, in addition to reimbursement for costs. Another type of contract, called a fixed-cost contract, may take the form of a lump-sum contract, where the company can make additional profit if it finishes early. A fixed unit-price contract is based on a fixed price per item of work completed. All contracts are subject to change based on changing client needs or a change in the scope of a specific project.
Worldwide, the environmental consulting market is forecast to reach about $75 billion by 2032, with a compound annual growth rate of 6.81%, according to Data Bridge Market Research. Growth is expected to come primarily from North America.
The US environmental consulting services industry includes about 10,000 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $16 billion.
COMPETITIVE LANDSCAPE
Demand is driven by the needs of businesses and government agencies to comply with new, existing, or anticipated environmental laws and regulations. The profitability of an individual company depends on its ability to accurately predict project costs and to secure contracts with large organizations such as the US government. Large firms have the advantage of providing a wide range of environmental expertise and can, thus, offer "one-stop shopping" for clients. Small firms are able to compete by specializing in regional markets or particular areas of expertise. The US industry is fragmented: the 50 largest firms account for about 30% of industry revenue.
PRODUCTS, OPERATIONS & TECHNOLOGY
Major environmental consulting services include environmental assessment (determining the environmental condition of a particular site), site remediation (cleaning up polluted areas), natural resource management (strategies for managing a particular environment), environmental auditing (determining an organization's environmental impact), waste management, and environmental policy development. Environmental assessment services account for about 75% of US industry revenue, followed by environmental consulting services for about 15%.
Firms tend to increase their service offerings with scale, as larger firms can afford to hire employees from a variety of specialties. Environmental consulting divisions of large engineering and architectural firms offer services that complement the product lines of those firms. For example, Bechtel, which often consults for energy production companies, has worked on projects designed to reduce emissions at power generation plants. Larger firms increasingly offer management consulting to help clients address complex issues such as climate change or incorporate elements of environmental, economic, or social sustainability into operations.
For companies involved in remediation, various technologies are used to treat and remove contaminants depending on site characteristics and the type of pollution. Excavation is the most common process for soil remediation and may involve aeration or bioremediation. Dredging is done to remediate soil under water. Contaminated ground water may be pumped and treated or undergo air stripping, in which contaminants are vaporized and then removed from the airstream. In many cases materials are added to polluted sites to bind with the contaminants to prevent further spreading. Oxidation, soil vapor extraction, and bioremediation are also common remediation techniques.
Some firms rely on one customer for a majority of their revenue; for many firms this is the government. Environmental consulting work is specialized and labor-intensive, and a high proportion of employees have bachelors or graduate degrees. The expertise of employees is what environmental consultants' clients pay for, and firms pay continual attention to attracting and retaining qualified employees. Employees range from engineers to biologists, ecologists, and planners.
Environmental consulting firms work based on contracts, which take multiple forms. Cost-plus contracts require clients to pay a fee plus reimbursement of expenses. One type of cost-plus contract includes an incentive for finishing a project early or under-budget. Time and materials contracts require payment on an hourly basis, which can change based on the scope of the project, in addition to reimbursement for costs. Another type of contract, called a fixed-cost contract, may take the form of a lump-sum contract, where the company can make additional profit if it finishes early. A fixed unit-price contract is based on a fixed price per item of work completed. All contracts are subject to change based on changing client needs or a change in the scope of a specific project.
Table of Contents
- Industry Overview
- Quarterly Industry Update
- Business Challenges
- Business Trends
- Industry Opportunities
- Call Preparation Questions
- Financial Information
- Industry Forecast
- Web Links and Acronyms
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