Improved downstream markets and new OSHA regulations will bolster industry demand
Los Angeles, CA (PRWEB) January 31, 2012
The Occupational Health and Workplace Safety Services industry has remained relatively strong in the past five years, while weathering a volatile economic environment. In the five years to 2012, revenue is expected to increase at an average annual rate of 2.0% to $5.5 billion; though this growth has not been steady. The economic downturn in late 2008 and 2009 caused many of the industry's downstream customers, such as mining companies and the construction market, to reduce their product levels and lay off employees. According to IBISWorld industry analyst Mary Nanfelt, “with fewer workers and projects, demand for the industry's services declined during the recession.” Nevertheless, when the economy began to recover in 2010, demand quickly returned, boosting revenue. In 2012, industry revenue is expected to increase by 4.5%.
In addition to changes in demand from downstream customers, changes in workplace safety enforcement and regulation also affected the industry. The US Department of Labor's Occupational Safety and Health Administration (OSHA) enforces regulation regarding workplace safety for employees. According to Nanfelt, “the administration increased its enforcement during the past five years, which caused more companies to demand industry services to avoid government penalties.”
Similar to the past three years, demand from key customers will continue to increase over the next five years, supporting industry growth. Demand from the construction industry will particularly benefit the industry, as it rebounds from the housing crisis and slowdown in commercial building. Also, new regulation and fines implemented by specific states and OSHA will likely propel industry revenue. As revenue continues to grow, the number of industry firms will increase. In the five years to 2017, enterprise numbers are forecast to rise by an average of 5.7% per year to 37,425. The Occupational Health and Workplace Safety Services industry is comprised primarily of many small-scale operators that concentrate activities in narrow geographic regions or niche markets. Nevertheless, the industry does have several major companies, including DuPont, Bureau Veritas and Marsh and McLennan Companies.
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This industry provides advice and assistance to organizations and companies to assure safe and healthy working conditions for employees. Firms provide training, outreach, education and assistance.
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