Los Angeles, CA (PRWEB) July 27, 2013 -- Due to growing recognition of climate change and environmental damage, environmental consulting has become a lucrative business. Firms in this industry assist other companies to reduce the damage done to surrounding environments while operating. Most notably, this includes the provision of environmental assessments, audits, natural resource and waste management, environmental policy development and licensing and permitting assistance. Consultants enable businesses to better understand their regulatory requirements and take necessary steps to reduce the presence of negative externalities. Rising environmental concern and the large mining sector in Canada have helped the Environmental Consulting industry over the past five years. However, high levels of growth were subdued as the Canadian economy was subjected to the US recession, which shook investor confidence and reduced demand. Furthermore, the onset of the recession in Canada exacerbated faltering conditions. Key industry markets such as construction, mining, power and oil and gas experienced anaemic demand as private investment fell and demand waned. Government contracts proved to be more lucrative during this period, however, the implementation of Bill C-38 in June 2012, also known as the Jobs, Growth and Long-term Prosperity Act, reduced demand for independent assessors such as environmental consultants. According to IBISWorld Industry analyst Jeremy Edwards, “more recently, growth in major markets has improved and the industry has recovered lost ground”. Industry revenue is estimated to have grown by an average annual rate of 1.7% over the five years through 2013. Increasing demand from major markets is expected to boost the industry, which is projected to grow by 3.2% in 2013 to $1.7 billion.
Conditions are expected to be less volatile over the next five years. The industry is becoming increasingly relevant as climate change becomes a prevalent international issue. Furthermore, demand from mining, which includes oil and gas, is expected to rise over the five-year period. “Power generation, distribution and general construction markets are also expected to rebound as investors shrug off the effects of the property bubble,” says Edwards. As a result, the industry is expected to continue growing over the five years through 2018. The number of firms operating in the industry will also continue to grow as new players attempt to capture high industry profit margins.
The Environmental Consulting industry is characterized by a low level of market share concentration. There are a number of small businesses in the industry, many hiring no additional employees and simply operating as sole proprietors or partnerships. The larger firms in the industry are firms that are specialized in providing engineering services and also provide environmental consulting services. This includes firms such as SNC-Lavalin, AECOM Technology Corporation, CH2M Hill and URS Corporation. New firms are expected to continue to enter the industry and further dilute market share concentration. Larger firms in the industry are expected to purchase smaller firms in an effort to increase market share, however, concentration will remain low overall.
For more information, visit IBISWorld’s Environmental Consulting in Canada industry report page.
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IBISWorld industry Report Key Topics
This industry provides advice to businesses and the federal government on environmental issues, such as the control of 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.
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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 and Canadian 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.
Gavin Smith, IBISWorld Inc., http://www.ibisworld.com, 310-866-5042, [email protected]
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