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
Jul 10, 2024 - Environmental Consulting Industry Growth to Improve
- The environmental consulting industry is expected to experience a modest rebound after slower growth in 2024. The industry’s year-over-year growth is forecast to drop to 3.4% following a rise of 7% in 2023, according to Inforum and the Interindustry Economic Research Fund, Inc. Growth in the environmental consulting industry is expected to improve in 2025 with a rise of 4.7%, then see flat but steady average annual growth of about 5.1% through 2028, according to Inforum and the Interindustry Economic Research Fund, Inc.
- A recent report by Morningstar suggests that few companies are on track to meet the 2050 climate goals outlined in the Paris Accords, according to ESG Dive. The study found that of the more than 3,370 firms in the Morningstar Global Large-Mid Cap Equities Index, none were set to meet the aim of containing temperature increases below 1.5 degrees Celsius. About 19% of firms were “moderately aligned” with outlooks of temperatures rising between 1.5 – 2 degrees Celsius by 2025. The study revealed 38% of firms in the index were “seriously misaligned” with meeting net zero emissions by 2050. The report found that while energy firms were making progress on lower-carbon alternatives and renewables, the energy industry is more exposed to climate risks than any other industrial sector.
- While there wasn’t much change in the levelized costs for new solar and wind energy projects between 2023 and 2024, costs have risen significantly since 2021, according to a June report by financial advisory firm Lazard. Higher interest rates and other pressures have pushed up the cost of renewables development, making existing gas-fired generation more competitive. Between 2021 and 2024, the levelized cost of energy (LCOE) for standalone solar rose from $36 per megawatt-hour (MWh) to $61/MWh. Over the same period, the LCOE for standalone wind projects increased from $38/MWh to $50/MWh. The LCOE for new combined-cycle natural gas turbine power rose from $60/MWh in 2021 to $76/MWh in 2024. Costs for developing wind and solar projects with attached energy storage capability have grown even more. Lazard suggests that energy diversity that includes fossil fuels is needed, given the intermittent availability and rising costs of renewables.
- In April 2024, the EPA designated two types of per- and polyfluoroalkyl substances (PFAS) - more commonly known as “forever chemicals” - as hazardous substances under Superfund or CERCLA (Comprehensive Environmental Response, Compensation, and Liability Act). The EPA began enforcing the new designation on July 8, 2024. The designation affects perfluorooctanoic acid (PFOA) and perfluorooctanesulfonic acid (PFOS) and ensures that spills, leaks, and other releases of the chemicals are reported and cleaned up. Forever chemicals - which are used in food packaging, textiles, and cookware – have been linked to health problems, including cancers and immune and developmental disorders. The EPA says that designating PFOA and PFOS under its Superfund authority will expedite clean-ups and ensure parties responsible for the pollution pay for cleaning contaminated sites. PFOA and PFOS are no longer manufactured in the US, but because they take a long time to break down, they remain widespread in water and soil. The EPA ruling could increase demand for environmental consulting services.
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