This is a very big industry that is becoming more main stream. \u00a0The industry\u00a0consolidation\u00a0bandwagon is starting, so like the Gartner Hype\u00a0Cycle predicts, its only a matter of time before there is\u00a0wholesale buy-ups\u00a0of niche Environmental Consulting firms by the broader based players. The USA market\u00a0is the worlds largest, with spend on Environmental Consulting already at\u00a0$11.7 Billion. \u00a0However its also a mature market and not predicted to really grow over the remainder of this decade. ![\"alan\"](\"https:\/\/flevy.com\/blog\/wp-content\/uploads\/2015\/08\/alan-300x197.png\")
If you expand the above to the build side of Environmental facilities, the number rises to over $19 Billion. However, the global growth expectations across all areas of consulting are predicted to stay fairly flat over the next 5 years, so the prediction is not surprising. ![\"enviconsul\"](\"https:\/\/flevy.com\/blog\/wp-content\/uploads\/2015\/08\/enviconsul-289x300.jpg\")
Based on Hoovers data, the\u00a0aggregated revenues\u00a0of the world’s top 20 firms\u00a0breaks down like this:<\/p>\n
The world’s largest firms that account for about 30% of global spend are<\/p>\n
Worth noting that even\u00a0the largest has less than 5% market share\u00a0under any segmentation that I could see. However, and just to make a point, a great deal of the companies in this area are actually very small. \u00a0The overall category comes under\u00a0Engineering Services,\u00a0which has a\u00a0Global Revenue of $783 Billion, employs over\u00a04 Million People\u00a0across over\u00a0730,000 companies\u00a0(an average of just 5 people per firm).<\/p>\n
Businesses and government agencies have to comply with environmental laws and regulations. The profitability of any company depends on securing contracts with large organizations such as the government. While Large firms have the advantage of providing a wide range of environmental expertise, small firms are able to compete by specializing in local\u00a0markets or focused\u00a0areas of expertise.<\/p>\n
If it makes sense to enter the market, it is probably best achieved by buying an existing small firm. \u00a0The number in the UK alone looks in excess of 1000 firms, with small employment in 90% of them And equally, the\u00a0day\u00a0rates do not look that great\u00a0either when if comes to what the IT industry achieves, with\u00a0lower than average utilization rates. \u00a0So my deduction is that much of the Environmental Services Consulting Industry\u00a0could do with a “Best Practice” bath\u00a0from the broader industry its a subset of.<\/p>\n
But fundamentally, Environmental Consulting is a Professional Services Industry, so its challenges are familiar to us all.<\/span><\/p><\/blockquote>\n","protected":false},"excerpt":{"rendered":"
This is a very big industry that is becoming more main stream. \u00a0The industry\u00a0consolidation\u00a0bandwagon is starting, so like the Gartner Hype\u00a0Cycle predicts, its only a matter of time before there is\u00a0wholesale buy-ups\u00a0of niche Environmental Consulting firms by the broader based players. The USA market\u00a0is the worlds largest, with spend on Environmental Consulting already at\u00a0$11.7 Billion.… Environmental Consulting as a Revenue Line for Professional Services Firms<\/span><\/a><\/p>\n","protected":false},"author":62,"featured_media":1918,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"neve_meta_sidebar":"","neve_meta_container":"","neve_meta_enable_content_width":"","neve_meta_content_width":0,"neve_meta_title_alignment":"","neve_meta_author_avatar":"","neve_post_elements_order":"","neve_meta_disable_header":"","neve_meta_disable_footer":"","neve_meta_disable_title":"","footnotes":""},"categories":[81],"tags":[931,932,78,929,933,930],"class_list":["post-1917","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-strategy","tag-acquisitions","tag-consolidation","tag-consulting","tag-environmental-consulting","tag-gartner-hype-cycle","tag-mergers"],"_links":{"self":[{"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/posts\/1917","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/users\/62"}],"replies":[{"embeddable":true,"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/comments?post=1917"}],"version-history":[{"count":5,"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/posts\/1917\/revisions"}],"predecessor-version":[{"id":2014,"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/posts\/1917\/revisions\/2014"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/media\/1918"}],"wp:attachment":[{"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/media?parent=1917"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/categories?post=1917"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/tags?post=1917"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}