Industry revenue has grown as construction and industrial production have improved.
New York, NY (PRWEB) March 09, 2015
Revenue for the Water and Air Quality Testing Services industry is dependent on new construction, government regulation and government funding as well as consumer and business spending. Over the past five years, tailwinds generated by growing downstream demand have resulted in revenue growth for industry operators. IBISWorld expects industry revenue to grow at an annualized rate of 2.0% to $1.7 billion over the five years to 2015, including a 3.5% increase in 2015.
Over the five years to 2015, demand from construction is estimated to grow at an annualized rate of 4.5%. “Demand for construction benefits this industry as residential and commercial buildings are required by law to test the water and air quality in their premises,” according to IBISWorld Industry Analyst Zeeshan Haider. Buildings require testing for asbestos, mold and other materials that are dangerous to human health. Rapid growth of the industrial production index in the past five years has also boosted industry revenue as a greater number of manufacturing facilities required air and water quality testing services for government-regulated safety standards. In addition to improving construction markets, increased government regulation has benefited operators; workplace health and safety concerns and growing environmental regulation have boosted revenue as more businesses and individuals charter industry services to detect hazardous materials.
Increasing demand for industry services over the past five years has bolstered industry participation. IBISWorld expects the number of companies in this industry to increase at an annualized rate of 1.2% to 2,818 enterprises. “Likewise, labor has expanded as more employees are needed to operate complex machinery, handle potentially dangerous chemicals and collect samples for testing,” says Haider. Thus, industry operators spend more than 40.0% of revenue on wages.
Over the next five years, as the number of housing starts increasing, the value of residential construction and the industrial production index continue to rise, demand for this industry will grow. Furthermore, increasing infrastructure investment will boost demand for industry services, as industry operators are likely to play an important part in feasibility studies and post-completion environmental analysis.
For more information, visit IBISWorld’s Water and Air Quality Testing Services in the US industry report page.
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IBISWorld industry Report Key Topics
This industry tests water and air for asbestos and other substances, such as bacteria, pH levels, mold, nitrates, mercury, pesticides, volatile organic compounds and inorganic chemicals.
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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