Demand will soar as the public and private sectors adopt environmentally friendly practices
Los Angeles, CA (PRWEB) December 17, 2012
Since 2007, the Environmental Consulting industry has been going strong as companies “go green.” According to IBISWorld industry analyst Andrew Krabeepetcharat, the introduction of new legislation to curb emissions has boosted revenue during the five years to 2012, with companies hiring consultants to help them comply with new rules. The BP Deepwater Horizon oil spill in the Gulf of Mexico further bolstered industry revenue over 2010, when demand for consultants spiked to help mitigate the environmental impact of the largest-ever oil spill in the United States. As work associated with the oil spill winds down, consultants are not likely to have trouble finding work as the industry continues its rapid growth. In the five years to 2012, revenue is expected to grow at an average rate of 6.8% annually to reach $20.7 billion, including an estimated increase of 8.6% in 2012. The industry remained largely unaffected by the recession, with revenue growth of 7.7% and 8.3% in 2009 and 2010.
The public is increasingly striving for a cleaner environment, demonstrated by shifts in consumer sentiment that favor the environment, says Krabeepetcharat. At the same time, companies have grown increasingly aware of how their actions affect the environment and have sought to reduce their carbon footprints by implementing environmentally friendly practices. These firms are also increasingly interested in promoting an environmentally safe image to create a positive reputation. Construction companies are jumping on the bandwagon by constructing buildings that are safer for the environment, leading to higher demand for environmental consultants from the public and private sectors. The Environmental Consulting industry has a low level of concentration. The nature of this consulting industry, which includes a high proportion of nonemployers, prevents market share concentration from increasing quickly. Low barriers to entry enable nonemployers to enter the industry relatively easily. However, larger remediation firms often perform consulting services as well. When these companies merge or extend their reach into the consulting space, market share concentration increases. Although this trend has taken place over the past five years, nonemployers entering the industry have more than offset consolidation. As such, concentration has stayed relatively steady over the past five years. Over the next five years, the level of concentration in the Environmental Consulting industry will continue to remain steady; however, large enterprises will continue to acquire smaller players in the industry. Concentration is likely to increase beyond the next five years as the industry becomes more saturated and consolidations rise.
The future of environmental consulting is promising. Increased environmental regulations are anticipated, particularly in the areas of oil drilling and energy dependence. Customers will increasingly demand the industry's services for advice about drilling offshore and for aid in becoming more energy-efficient and adopting renewable energy. Corporate profit is expected to grow over the next five years, allowing companies to allocate more resources toward implementing sustainable practices and promoting positive public images during the next five years. Industry firms will aid construction companies in particular to meet standards as construction activity picks up. As a result of these trends, revenue is forecast to grow in the five years to 2017. For more information, visit IBISWorld’s Environmental Consulting in the US industry report page.
Follow IBISWorld on Twitter: https://twitter.com/#!/IBISWorld
Friend IBISWorld on Facebook: http://www.facebook.com/pages/IBISWorld/121347533189
IBISWorld industry Report Key Topics
This industry provides advice to businesses and federal governments on environmental issues, such as controlling environmental contamination from pollutants, toxic substances and hazardous materials. Environmental consultants identify problems, measure and evaluate risks, and recommend solutions. The industry employs a multidisciplined staff of scientists, engineers and other technicians.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.