Remediation and Environmental Cleanup Services in the US Industry Market Research Report from IBISWorld has Been Updated
After alternating years of growth and decline in 2010 and 2011, the industry will begin to move upward again; demand from construction and development companies will support this revival, as firms will require the industry's services for their projects. For these reasons, industry research firm IBISWorld has updated a report on the Remediation and Environmental Cleanup Services industry in its growing industry report collection.
Los Angeles, CA (PRWEB) August 15, 2013
Before the introduction of environmental regulation in the 1970s and 1980s, the dumping of toxic waste and contamination of buildings, soil and water left thousands of sites unfit for use and dangerous to public health. “The Remediation and Environmental Cleanup Services industry grew out of the need to clean up the mess, and the government developed programs to support the industry,” IBISWorld industry analyst Deonta Smith says. More recently, the American Recovery and Reinvestment Act (ARRA) allocated funding toward remediation and cleanup services in an attempt to boost job growth following the recession. Over the five years to 2013, revenue for the Remediation and Environmental Cleanup Services industry is anticipated to grow at an annualized 8.8% to $24.4 billion, including an expected 9.8% gain in 2013.
The BP oil spill of 2010 led the way for robust revenue growth during that year as industry operators played a large role in the cleanup effort. The accident was the largest marine oil spill in the history of the oil industry. “About 205 million gallons of crude oil were released into the Gulf of Mexico, and while the flow of oil was capped in July 2010, the cleanup effort was far from over,” Smith says. The government awarded contracts to industry firms, and BP established a private fund for the cleanup. The Remediation and Environmental Cleanup Services industry's major contribution to the effort caused revenue to surge 52.2% in 2010; however, revenue declined 26.2% in 2011 as cleanup services and contracts tapered off. Such volatile changes in revenue are typical when natural disasters occur.
This industry’s market share concentration is low, and currently, the four largest firms are CH2M Hill Companies Ltd., The Shaw Group Inc., Tetra Tech and Clean Harbors Inc. Of the larger firms providing remediation services, most offer industry services as part of a wider range of environmental and waste management services. These businesses often diversify their services to expand their market appeal. Often, remediation and environmental cleanup services are dictated by government expenditure. Firms in this industry have looked at other ways to leverage their expertise to increase revenue. As a result, concentration has increased as these firms acquire other firms that consult and provide environmental services to clients. In doing so, firms in this industry have increased their client base.
The next five years will be a telling time for industry players, as decreased government spending across the board threatens industry revenue. Stimulus measures like the ARRA are not expected in the near future, and Congress will likely block large spending projects, placing new focus on deficit-reduction measures. With decreased spending from the government, one of the industry's major sources of revenue, players will look to private-sector clients as the economy gains steam. Clients in the development and construction sectors are expected to enjoy higher demand over the next five years and they will require remediation services to prepare for the development and building of new property. As a result of these trends, industry revenue is projected to continue increasing over the next five years. For more information, visit IBISWorld’s Remediation and Environmental Cleanup Services in the US industry report page.
Follow IBISWorld on Twitter: https://twitter.com/#!/IBISWorld
Friend IBISWorld on Facebook: http://www.facebook.com/pages/IBISWorld/121347533189
IBISWorld industry Report Key Topics
This industry remediates and cleans up contaminated buildings, mine sites, soil and ground water. Industry firms also undertake soil remediation, wastewater treatment, hazardous material removal and abatement of toxic materials such as asbestos and lead.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.
For the original version on PRWeb visit: http://www.prweb.com/releases/2013/8/prweb11015174.htm