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 8,300 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 about 10-11 workers, and generates $2 million in annual revenue.

    • The environmental consulting services industry consists of about 8,300 firms that employ 89,000 workers and generate $17 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 Environ, and TRC Companies, may have operations in foreign countries.
                                  Industry Forecast
                                  Environmental Consulting Services Industry Growth
                                  Source: Vertical IQ and Inforum

                                  Recent Developments

                                  Nov 11, 2022 - Industry may Benefit From New Methane Emissions Regulations
                                  • The US Environmental Protection Agency is planning to require oil-and-gas companies to monitor existing production facilities for methane leaks and repair them, according to Biden administration officials. The planned rules affect hundreds of thousands of US wells, storage tanks, and natural-gas processing plants, and require companies to replace leaky, older equipment and buy new monitoring tools. The Biden administration expects the measures to result in an 87% reduction in US methane emissions from covered sources by 2030 from 2005 levels.
                                  • The Inflation Reduction Act (IRA) passed in mid-2022 will “will have a profound effect across industries in the next decade and beyond” and could ultimately shape the direction of the American economy, according to Credit Suisse investment bank. Environmental consulting firms are likely to benefit from increased spending to reduce climate change. Federal spending tends to catalyze private investment, Credit Suisse analysts say. That could send total climate spending across the US economy to roughly $1.7 trillion over the next 10 years.
                                  • Many legal experts suggest that a recent Supreme Court ruling which substantially limited the authority of the Environmental Protection Agency (EPA) to regulate carbon emissions from power plants may result in litigation of pending Securities and Exchange Commission (SEC) rule changes that would require public companies to increase their disclosures relating to climate risk. The June 2022 West Virginia v. EPA ruling addressed the proper scope of executive agency rulemaking, so it may impact other regulatory agencies. The SEC's proposed rules would require contractors supplying goods and services to the federal government to disclose the greenhouse gas emissions that they directly and indirectly cause if the emissions are "material" or included in a company-set emissions target.
                                  • The US Supreme Court limited how the nation’s main anti-air pollution law can be used to reduce carbon dioxide emissions from power plants. The court said that the Clean Air Act does not give the Environmental Protection Agency broad authority to regulate greenhouse gas emissions from power plants that contribute to global warming. “A decision of such magnitude and consequence rests with Congress itself, or an agency acting pursuant to a clear delegation from that representative body,” Chief Justice John Roberts wrote. Justice Elena Kagan wrote in a dissenting opinion that the decision strips the EPA of the power Congress gave it to respond to “the most pressing environmental challenge of our time.”
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