Jacobs Engineering Competition
Now Viewing Jacobs Engineering's competition in: Environmental Consulting
Call Preparation Questions
Customers, Marketing, Pricing, Competition
How does the company learn of new consulting opportunities? - Large clients may ask environmental consulting firms to add capacity in order to meet emerging needs, or a firm might respond to a request for proposal (RFP) from a government agency.
How does the company keep track of regulatory changes? - Upon learning of new regulations or changes to current regulations, companies are able to seek out clients potentially impacted by those changes.
Does a majority of the company's work come from one or a few clients? - Many environmental consultants rely on one or a few clients for a majority of their revenue, primarily the government or large corporations.
What percentage of new contracts come from current clients? - Often current clients encourage consultants to offer new types of services as their needs expand.
What type of contract is the most prevalent among the company's clients? - Contracts can take multiple forms, but are usually a variation of cost-plus, time and materials, or fixed-cost contracts. Reimbursement schedules are one primary difference among the types.
How does the company market its services? - Large national firms may attend trade shows or advertise in industry publications, while smaller firms that specialize in local issues may approach potential clients door-to-door. Large firms sometimes devise national strategies that are customizable for local offices.
What percentage of the company's clients are international companies or governments? - The largest firms may have multiple international offices.
Which firms does the company consider its major competitors? - The scope of competition varies greatly within the industry, as occasionally small firms may be forced to compete with large conglomerate firms for contracts.
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 labor-intensive: average revenue per employee is about $140,000.
Business Challenges
CRITICAL ISSUES
Dependence on Broader Economy - The condition of the US economy overall has a major impact on the health of the environmental consulting industry. Specifically, corporate profits are a key influence on demand for consulting activities, and profits may drop 10 percent over a single year during an economic downturn. While certain environmental compliance activities, such as industrial emissions compliance, are required no matter the economic circumstances, firms' management consulting activities are especially vulnerable during spending cutbacks.
Reliance on Major Clients - Environmental consultants often rely on a single client or a few large clients for a majority of their revenues in a given year, leaving firms vulnerable when large clients, often the government, face economic difficulties. It is not uncommon for the combination of federal, state, and local government clients to comprise between 40 and 65 percent of a company's annual revenue. For example, one large firm depended on government contracts for 50 percent of revenue in fiscal years 2006 to 2008.
Industries Where Jacobs Engineering Competes
- Construction
- Construction & Design Services
- Commercial & Heavy Construction(primary)
- Architectural & Engineering Services
- Construction & Design Services
- Environmental Services & Equipment
- Remediation & Environmental Cleanup Services
