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Annual Snapshot Survey ranks business prospects in 2016-17 EBJ publishes mid-year outlook for the U.S. environmental industry
AN DIEGO, CA — En- vironmental Business Journal (EBJ) antici- pates growth of 4% for the U.S. environmental industry in 2016, buoyed by the upward trajectory of U.S. construction and infrastructure spending, according to preliminary esti- mates published in EBJ’s an- nual Environmental Industry Outlook edition. Drawing on the results of EBJ’s 2016 Snapshot Survey of environmental industry executives, this edition ranks the best business prospects for environmental firms in 2016- 17, including opportunities S
by client, service, media and geography. “EBJ’s Snapshot survey takes the pulse of environ- mental companies at the out- set of 2016 and checks in with executives regarding business trends,” said Editor-in-Chief Grant Ferrier. “Typically en- vironmental executives are slightly more optimistic about future growth, and respon- dents to EBJ’s 2016 survey forecast average growth for their environmental services firms of 5.6% in 2016, slightly higher than EBJ’s forecast for the industry overall,” he noted. Final figures for 2015
will be published in EBJ’s Annual Overview issue in the fall, but compiled company data already points to the industry’s steady recovery from the 2009 financial crisis when revenues of the environ- mental industry’s 14 segments declined 1.3%. EBJ 2016 Snapshot Survey Highlights: Growth prospects by client sector: Out of 33 cus- tomer areas, respondents to EBJ’s Snapshot Survey ranked Renewable Energy as the number one growth pros- pect in 2016-2017, followed by Healthcare, Water Utilities,
Power Utilities, Hospitality, and Port Authorities. “Notable client categories water and power utilities and ports are among the top six ranked clients in 2016, point- ing to infrastructure as the next big driver in the envi- ronmental industry,” observed Ferrier. “Even renewable en- ergy could be construed as an infrastructure segment in that a significant amount of work is related to transmission, distribution and storage as well as generation assets.” Re- spondents ranked Oil & Gas, Mining and Primary Metals in the bottom six client sectors.
Growth prospects by service category: The top- ranked prospects for 18 ser- vices in EBJ’s Snapshot Sur- vey were Water Recycling & Reuse, Environmental Man- agement Information Systems (EMIS), Green Building, and Outsourcing of Environmental Health and Safety (EHS). “It was no surprise to see EMIS systems and services ranked second as it has been the only segment of the en- vironmental industry with double-digit revenue growth for the last couple years, and companies report continued growth in 2016,” said Ferrier. The trend towards outsourc- ing the EHS function was reflected in its ranking as the fourth strongest service category, with 68% of respon- dents rating it as “strong” or “very strong” in terms of growth prospects, the survey revealed. “Outsourcing in all forms has seen a revival recently,” said Ferrier. “Many environ- mental contractors note that their client base, particularly in mature environmental in- dustry segments such as water utilities and wastewater treat- ment works, have retiring technical and management staff and either lack qualified replacement or are reluctant to take on employees, benefits and pensions associated with full time staff. This is giving a boost to EHS outsourcing.” Growth prospects by Geography: Regions noted for having the best growth prospects for environmental firms in 2016-17 were headed by Southern California, the Southeast, Northern Califor- nia and the Pacific Northwest, as property development su- perseded oil & gas develop- ment as a major driver of environmental work. Inter- nationally, India, Germany, Nordic Europe and China offered the best prospects for sales and contracts, according to EBJ survey respondents. Forecasting Environ- mental Industry Growth EBJ’s Industry Outlook edi- tion looks in depth at macro- economic factors, which re- main instrumental in EBJ’s growth forecasts, along with key parts of the economy like construction activity and oil prices, in addition to the impact of environmental pol- icy drivers and government spending. n
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