Improved downstream markets and new regulations will bolster industry demand
Los Angeles, CA (PRWEB) December 13, 2013
The Occupational Health and Workplace Safety Services industry provides advice and assistance in the form of worksite evaluations, compliance audits, hazard assessments, facility design reviews, indoor air quality evaluations and training programs, which help protect the health and safety of employees in a diverse range of workplaces. For the past five years, the industry has remained relatively healthy despite a volatile economic environment. In the five years to 2013, revenue is expected to increase at an average annual rate of 1.4% to $5.7 billion. The economic downturn in late 2008 and 2009 caused many of the industry's downstream customers, such as manufacturing, mining and construction companies, to reduce their product levels and lay off employees. 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 for the Occupational Health and Workplace Safety Services industry. In 2013, industry revenue is expected to increase by 3.9%.
According to IBISWorld Industry Analyst Stephen Morea, “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. The administration increased its enforcement over the past five years, which caused more companies to demand industry services to avoid government penalties.
From 2013 to 2018, industry revenue is projected to grow and demand from key customers will continue to increase, especially from the construction 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.
The Occupational Health and Workplace Safety Services industry has a low level of concentration. “This low concentration is due to the breadth of services provided within the industry, the variety of markets served and the existence of many small, successful companies within each service area,” says Morea. Over the past five years, the contribution of nonemployers to the industry has increased, resulting in decreased concentration. As a result of greater demand for specialty consultants, many professionals in other industries have begun to offer their services on a part-time or contract basis as consultants, adding to the number of nonemployer firms.
For more information, visit IBISWorld’s Occupational Health and Workplace Safety Services in the US industry report page.
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IBISWorld industry Report Key Topics
The Occupational Health and Workplace Safety Services provides advice and assistance to organizations and companies to assure safe and healthy working conditions for employees. Firms provide training, outreach, education and assistance in the form of: worksite evaluations, hazard assessments, facility design reviews and compliance audits.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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