Environmental Consulting Services
Industry Profile Report
Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters
Industry Overview Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.
Call Preparation Call Prep Questions, Industry Terms, and Weblinks.
Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.
Industry Profile Excerpts
Industry Overview
The 8,500 environmental consulting services firms in the US provide expert advice and assistance to other companies and organizations on environmental issues. Major services offered include environmental assessments, site remediation planning, natural resource management, and waste management consulting services. Firms may also provide evaluations of environmental studies, environmental audits, and environmental policy development services.
Dependence on Skilled Staff
Environmental consulting firms rely on highly skilled staff to provide professional services to clients.
Dependence on Government Contracts
Government contracts can account for a significant percentage of business for environmental consulting firms, and projects typically involve a highly regulated procurement process.
Industry size & Structure
The average environmental consulting firm operates out of a single location, employs around 11 workers, and generates $2.4 million in annual revenue.
- The environmental consulting services industry consists of about 8,500 firms that employ 98,000 workers and generate $20.6 billion annually.
- The industry is fragmented; the top 50 companies account for about 31% of industry revenue.
- Large firms, which include Wood Group, Arcadis US, Ramboll, and TRC Companies, may have operations in foreign countries.
Industry Forecast
Environmental Consulting Services Industry Growth
Recent Developments
Jan 10, 2025 - Sustainability Goals Hindered by Lack of Financial Incentive
- A lack of financial incentives topped the list of reasons why some firms aren’t meeting their sustainability goals, according to a recent survey by environmental consultancy ERM. The survey queried C-suite executives and managers across industry sectors. Just under half (48%) of respondents cited a lack of financial incentives as the leading barrier to success in meeting their organization’s sustainability goals, followed by technology that is unavailable or too costly (43%) and a lack of any forceful regulation (41%). Improved training was the top-ranked solution for improving sustainability engagement (72% of respondents), followed by financial incentives and integration of sustainability goals into day-to-day operations. However, those surveyed said that their organizations’ most underutilized solutions were financial incentives and better training.
- In 2023, the US recycling rate for aluminum cans was 43%, down from an average of about 52% since 1990, according to a report released in December by the Aluminum Association and the Can Manufacturers Institute (CMI). In 2021, CMI and its members established a goal of hitting a 70% recycling rate by 2030. However, given the current rate, achieving the CMI’s 2030 goal is unlikely given current US recycling systems and policy. To help improve aluminum recycling, in 2025 CMI plans to lobby for extended producer responsibility (EPR) and deposit return legislation. Through EPR programs, firms that manufacture packaging products provide financial or operational support to help collect, recycle, and manage packaging. By August 2024 the only states with EPR laws were California, Colorado, Maine, Oregon, New Jersey, Minnesota, and Washington, according to Source Intelligence.
- The outlook for the global environmental and sustainability consulting industry is positive, according to the recently released Future of Consultancy survey by Environmental Analyst. After posting average revenue growth of 5.5% in 2023, survey respondents expect 2024 revenue to rise by 6.5%. Industry profit margins for 2024 are projected to increase to 7.4% over 6.2% in 2023. However, the industry is increasingly worried about headcount as the number of respondents expecting layoffs tripled for the 2024 survey compared to 2023. Overall, the survey respondents expect a 2.2% decline in their workforce. The consulting industry’s global average five-year compound annual growth rate (CAGR) is 5.9%, more than double the five-year outlook from the 2023 survey. Key growth drivers include the clean energy transition and demand for sustainability strategy services.
- More than 20% of the US population may rely on groundwater that has detectable levels of PFAS (per- and polyfluoroalkyl) substances, according to a report released in late October 2024 by the US Geological Survey (USGS). PFAS are a family of chemicals that have been used in a wide range of applications, including food box linings, non-stick cookware, and fire-fighting foams. Commonly referred to as “forever chemicals” because they are slow to break down in the environment, PFAS can have adverse health effects, according to the EPA. The USGS estimates that 71 to 95 million people in the lower 48 states who rely on groundwater may have PFAS in their drinking water supply. In addition to a scientific report, the USGS has released an online, interactive map allowing users to access probability estimates for the presence of PFAS.
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