Environmental Consulting Services Industry Overview

Excerpt from Environmental Consulting Services Report

Companies in this industry provide advice and assistance to businesses and other organizations on environmental issues. Major companies include Veolia Environmental Services North America and Tetra Tech (both headquartered in the US); RPS Group and Environmental Resources Management (UK); Arcadis (Netherlands); AMEC Earth & Environmental (Canada); and environmental engineering and consulting divisions of large engineering and construction firms such as US-based Bechtel, CH2M HILL, and URS.

Competitive Landscape

Demand is driven by the needs of businesses and government agencies to comply with new, existing or anticipated environmental laws and regulations. The profitability of an individual company depends on its ability to accurately predict project costs and to secure contracts with large organizations such as the US government. Large firms have the advantage of providing a wide range of environmental expertise and can thus offer "one-stop shopping" for clients. Small firms are able to compete by specializing in regional markets or particular areas of expertise. The industry is fragmented: the 50 largest firms account for less than 30 percent of industry revenue.

Products, Operations & Technology

Major environmental consulting services include environmental assessment (determining the environmental condition of a particular site), site remediation (cleaning up polluted sites), natural resource management (strategies for managing a particular environment, such as a wetlands area), environmental auditing (determining an organization's environmental impact, such as its carbon emissions), waste management, and environmental policy development. Of the major sources of consulting-specific revenue, environmental assessment accounts for about 30 percent; site remediation, 15 percent; waste management, 10 percent; natural resource management, 5 percent; and environmental audits, less than 5 percent.