

May 2009
Environmental Industry Review 2014
Grant Ferrier
Editor, Environmental Business Journal
Editor, Climate Change Business Journal
President, Environmental Business International, Inc.
Chairman, Environmental Industry Summit XII, March 12-14, 2014
Presentation Outline
Environmental Industry: Economics &
Statistics; Trends
Key Growth Factors in 2010s
EBJ 2014 Snapshot Survey Results
Key Client Sectors
Consulting & Engineering Segment
EBJ & CCBJ
Environmental Industry in Context: Growth
10%
USA GDP growt h
Environment al Indust ry growt h
8%
6%
4%
2%
0%
89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13
-2%
-4%
SOURCE: EBI Inc., San Diego CA; Annual segment-by-segment research; government shutdowns
in 1995-96 and October 2013
Environmental Industry: Economic Stats
Revenues
$ bil
Analyt ical Services
Companies
Ent it ies
Export s
2 0 1 2 $ mil
Employment
2012
2 .0
940
123
1 9 ,8 0 0
Wast ewat er Treat ment Works
5 0 .9
2 6 ,2 7 0
254
1 8 1 ,9 0 0
Solid Wast e Management
5 5 .3
1 0 ,1 5 0
249
2 8 5 ,4 0 0
Hazardous Wast e Management
1 0 .1
520
121
4 7 ,4 0 0
Remediat ion/ Indust rial Svcs.
1 3 .6
2 ,0 8 0
816
1 1 1 ,0 0 0
Consult ing & Engineering
2 8 .8
3 ,3 7 0
4 ,8 6 1
2 6 1 ,6 0 0
Wat er Equipment & Chemicals
2 8 .7
1 ,9 9 0
1 0 ,7 7 6
1 6 6 ,0 0 0
5 .9
660
2 ,8 8 2
3 9 ,5 0 0
Air Pollut ion Cont rol Equipment
1 5 .5
1 ,7 1 0
2 ,4 5 3
9 8 ,6 0 0
Wast e Management Equipment
1 1 .4
820
4 ,2 2 5
7 5 ,6 0 0
2 .0
390
158
2 9 ,4 0 0
Wat er Ut ilit ies
5 0 .8
6 1 ,5 0 0
107
1 9 6 ,1 0 0
Resource Recovery
3 0 .4
4 ,9 5 0
1 9 ,4 2 8
9 3 ,1 0 0
3 8 .2
2 ,1 2 0
3 ,3 6 0
1 2 8 ,1 0 0
3 4 3 .3
1 1 7 ,4 7 0
4 9 ,8 1 2
1 ,7 3 3 ,5 0 0
Inst rument s & Inf o. Syst ems
Process & Prevent ion Tech.
Clean Energy Syst ems & Power
Tot als:
2012 US Environmental Trade Balance
Equipment
US ind
US mkt
surplus
exports
imports
($bil)
%export
Water Equipment & Chemicals
28.7
24.3
4.4
10.78
6.4
38%
Air Pollution Control
15.5
16.8
-1.3
2.45
3.8
16%
5.9
3.4
2.5
2.88
0.4
49%
11.4
9.3
2.1
4.23
2.1
37%
2.0
2.0
0.0
0.16
0.2
8%
Solid Waste Management
55.3
55.6
-0.4
0.25
0.6
0.5%
Hazardous Waste Mgmt
10.1
10.0
0.0
0.12
0.1
1%
Consulting & Engineering
28.8
25.9
2.9
4.86
2.0
17%
Remediation/Industrial Svcs.
13.6
13.3
0.3
0.82
0.5
6%
2.0
1.9
0.1
0.12
0.1
6%
Water Treatment Works
50.9
51.7
-0.9
0.25
1.1
0.5%
Water Utilities
50.8
52.3
-1.5
0.11
1.6
0.2%
Resource Recovery
30.4
11.7
18.7
19.43
0.8
64%
Clean Energy Systems & Power
38.2
47.4
-9.2
3.36
12.6
9%
343.3
325.8
17.5
49.8
32.3
14.5%
Instruments & Info. Systems
Waste Mgmt Equipment
Process & Prevention Tech.
Services
Analytical Services
Total
SOURCE: EBI Inc., San Diego CA, units in $bil. US ind is revenues generated by US cos worldwide.
US mkt is revenues from US customers.
Environmental Industry in Context:
Average Annual Growth Rate by Decade
70s
Analytical Services
80s
90s
00s
15%
21%
-1%
0%
Water Treatment Works
6%
5%
5%
5%
Solid Waste Management
6%
5%
5%
3%
Hazardous Waste Management
16%
28%
3%
1%
Remediation/Industrial Services
17%
22%
1%
2%
Consulting & Engineering
35%
25%
5%
5%
Water Equipment & Chemicals
16%
7%
4%
3%
Instruments & Information
14%
17%
8%
4%
Air Pollution Control Equipment
33%
10%
5%
-1%
Waste Management Equipment
9%
7%
2%
1%
14%
16%
14%
6%
5%
5%
4%
4%
Resource Recovery
11%
8%
2%
7%
Clean Energy Systems & Power
20%
3%
3%
20%
9%
8%
4%
4%
Process & Prevention Technology
Water Utilities
TOTALS
Industry Context
The
Green
Economy
Environmental
Industry
Climate
Change
Industry
2012 Climate Change Industry ($bil)
USA
2012
Growth
Global
2012
Growth
% USA
49.6
32%
336.6
16%
15%
0.4
149%
4.2
34%
11%
63.2
4%
200.3
4%
32%
Energy Storage
5.8
27%
18.3
30%
31%
Green Buildings
64.6
12%
200.6
10%
32%
101.4
16%
522.4
10%
19%
Carbon Markets
1.7
18%
103.0
-35%
2%
Adaptation
0.7
16%
2.2
16%
33%
Research/C&E
3.7
3%
10.1
2%
37%
291.2
15%
1,398
5%
21%
Low-Carbon Power
Carbon Capture & Storage
Energy Efficiency & DR
Transportation
Total Climate Change Industry
SOURCE: EBI Inc., San Diego CA, units in $bil. US ind is revenues generated by US cos worldwide.
US mkt is revenues from US customers.
C&E: Growth Factors in 2000s… and 2010s
Real Estate: Development, transactions, speculation, infill,
brownfields. Also M&A, GDP, stock market, investment.
Federal Markets: DOE and DOD budgets and accelerated
cleanup & closure; energy programs…. Cuts & sequestration
Oil & Gas: Record prices and record profits by oil
companies…. Fracking and North America renaissance;
Upstream, Midstream, Downstream… Exports
Commodity Prices: Mining & Natural Resources; Energy,
Water, Food… Up & Down
Environmental disasters to climate change: HW to Katrina
to BP to Sandy… Response to risk; Adaptation & Resiliency
Water & Wastewater: 36% of C&E revenues; stable-growth
Source: EBJ
President’s Budget Request for FY2015: $3.9T
http://www.washingtonpost.com/wp-srv/special/politics/presidential-budget-2015/
10
EPA Budget for FY2015 shows erosion…
Cutbacks focused in infrastructure finance, state water revolving funds.
Dems lose
House in 2010
Source: EPA
Budget in Brief
11
DOD FY15 Proposal: Army on diet; Reform in QDR
Troops coming out for draw down; but baseline remains defended by Congress.
http://www.defenseindustrydaily.com
12
EBJ Survey 2012 & 2013 & 2014
Results: SEGMENT Mean Growth
6%
5.4%
2014 Survey
2013 Survey
4.7%
5%
4%
2012 Survey
3.7%
3.8%
4.7%
4.1%
3.8%
3.7%
3.3%
3%
2%
1%
0%
2012
2013
2014 est.
Source: Environmental Business Journal, 2012 & 2013 & 2014 Snapshot Survey
2015 est.
EBJ Survey 2012 & 2013 & 2014
Results: COMPANY Mean Growth
9%
2014 Survey
2013 Survey
2012 Survey
8.1%
8%
7.1%
7%
6.2%
6%
6.1%
5.5%
5%
3.7%
3.3%
4%
4.3%
4.1%
3.9%
5.2%
5.1%
4.7%
3.5%
2.6%
3%
2%
1.0%
1%
1.2%
0.4%
0%
2009
2010
2011
2012
2013
2014 est.
Source: Environmental Business Journal, 2012 & 2013 & 2014 Snapshot Survey
2015 est.
EBJ Survey 2013 Results: COMPANY
Mean Growth (Jan-Feb 2013: n=91)
10%
8.1%
8%
7.1%
6%
4.3%
4.7%
3.7%
4%
2%
0.4%
0%
2009
2010
2011
2012
Source: Environmental Business Journal, 2013 Snapshot Survey
2013
est.
2014
est.
EBJ Survey 2014 Results: COMPANY
Mean Growth (Jan-Feb 2014: n=88)
8%
6.1%
5.5%
6%
5.2%
4.1%
4%
2%
3.5%
3.3%
1.0%
0%
2009
2010
2011
2012
2013
Source: Environmental Business Journal, 2014 Snapshot Survey
2014 est.
2015 est.
EBJ Survey 2013 & 2014: Spread of
COMPANY Growth: Polarization
16%
14%
More than 20%
15-20%
2012 Growth
10%
2%
9%
10-15%
16%
5-10%
14%
1-5%
14%
1% to -2%
32%
18%
19%
8%
-2% to -10%
2013 Growth
14%
4%
5%
6%
Less than –10%
0%
5%
10%
15%
20%
25%
Source: Environmental Business Journal, 2013 and 2014 Snapshot Survey
30%
35%
Operating Margins: 2009-2014
10%
8.9%
9%
8%
6.8%
7%
6%
7.2%
7.2%
2012
2013
6.3%
5.8%
5%
4%
3%
2%
1%
0%
2009
2010
2011
Source: Environmental Business Journal, 2014 Snapshot Survey
2014 est.
Change in Operating Margin in 2012
Up more than 10 points
5%
Up 5-10 percentage points
6%
Up 3-5 points
8%
Up 1-3 points
13%
Up 0-1 points
16%
The same
13%
Dow n 0-1 points
11%
Dow n 1-3 points
15%
Dow n 3-5 points
5%
Dow n 5-10 percentage points
3%
Fallen more than 10 points
5%
0%
5%
10%
15%
Source: Environmental Business Journal, 2013 Snapshot Survey; All +1.0; C&E +0.4
20%
Change in Operating Margin in 2013
Up more than 10 points
9%
6%
Up 5-10 percentage points
Up 3-5 points
9%
Up 1-3 points
17%
4%
Up 0-1 points
The same
Dow n 0-1 points
13%
2%
Dow n 1-3 points
13%
Dow n 3-5 points
9%
Dow n 5-10 percentage points
13%
Fallen more than 10 points
6%
0%
5%
10%
15%
Source: Environmental Business Journal, 2014 Snapshot Survey; All firms -0.2; C&E +0.3
20%
When Will US GDP Exceed 3.5% Again?
7%
6%
Never
2013 Results
19%
After 2018
8%
10%
2018
4%
16%
2017
14%
28%
2016
23%
17%
2015
2014
0%
2014 Results
29%
2%
17%
5%
10%
15%
20%
25%
30%
Source: Environmental Business Journal, 2013 & 2014 Snapshot Survey; When do you think USA
annual GDP growth will exceed 3.5% again as it last did in 2004 and in 1996-2000? (Consensus figures
for US GDP growth in 2011, 2012 and 2013 are 1.8%, 2.2% and 1.8%, respectively.)
Stock Market in 2014: Dow Jones IA Forecast
15-20%
2%
10-15%
9%
5-10%
33%
1-5% gain
27%
12%
flat or 1% to -1%
-1 to -5%
4%
-5 to -10%
11%
-10 to -15%
1%
-15 to -20%
1%
-20% or more
1%
0%
5%
10%
15%
20%
25%
30%
35%
Source: Environmental Business Journal 2014 Snapshot Survey; The Dow Jones Industrial Average
passed a previous October 2007 high point of 14,160 in February 2013, and has kept advancing to
around 16,500 in January 2014, or a 2013 gain of more than 20%. What percentage performance do
you predict for the DJIA in 2014?
Residential Property: When will we get back to
2006 peak value?
Never
2%
After 2018
31%
2018
17%
2017
20%
2016
19%
2015
2014
0%
10%
1%
5%
10%
15%
20%
25%
30%
35%
Source: Environmental Business Journal 2014 Snapshot Survey; Housing Prices: When do you think
average national US residential housing prices will get back to their Q2 2006 peak value? (Note: S&P
20-City Index bottomed out at 66% of the Q2 2006 average value in Q2 2009 and meandered between
66-70% until Q2 2012 before raising very steadily to end 2013 at 78% of Q2 2006 peak value.)
Oil Prices: When will crude hit $140/bbl again?
20%
Never
10%
31%
After 2018
21%
6%
6%
2018
2013 Survey
2017
6%
16%
2016
19%
17%
2015
2014
2014 Survey
11%
25%
0%
12%
0%
5%
10%
15%
20%
25%
30%
35%
Source: Environmental Business Journal 2014 Snapshot Survey; When do you think spot crude oil
prices will hit $140/barrel like they did in July 2008? (Note: 2010 prices were $75-90/barrel, 2011 $80100/barrel, 2012 $85-105/barrel and 2013 $100-120/barrel.)
When will US natural gas prices hit spot
prices of $10-13/MMBtu again?
16%
Never
21%
After 2018
2018
2017
43%
4%
55%
9%
9%
2%
2013 Results
6%
2016
2015
3%
2014
2%
2014 Results
11%
13%
8%
0%
10%
20%
30%
40%
50%
60%
Source: Environmental Business Journal 2013 & 2014 Snapshot Survey: When do you think USA natural gas
prices will hit April-June 2008 or August-December 2005 spot prices of $10-13/MMBtu again? (2009-2010
prices were $3-6, 2011 $3-4.5, 2012 prices were $2-3.5/MMBtu, 2013 prices were $3.20-4.40/MMBtu.)
U.S. Weighted Annual Average Coal Prices
Compared to Natural Gas ($/MMBtu)
10
9
Gas
Coal
8
7
6
5
4
3
2
1
0
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
Source: Climate Change Business Journal, February 2013 issue derived from Henry Hub, US DOE,
Navigant/Ventyx and others
Global Coal Consumption in Million Tonnes
4000
3500
3000
2500
2000
1500
1000
500
19
65
19
67
19
69
19
71
19
73
19
75
19
77
19
79
19
81
19
83
19
85
19
87
19
89
19
91
19
93
19
95
19
97
19
99
20
01
20
03
20
05
20
07
20
09
20
11
0
North America
S. & Cent. America
Europe & Eurasia
Middle East
Africa
Asia Pacific
Source: BP 2013 Statistical Review of World Energy; Asia 70% of total in 2012; NA -11% in 2012
When will the US institute a cap-and-trade
system similar to the EU-ETS or CA system?
25%
Never
23%
After 2018
2018
2017
14%
2%
3%
2%
4%
2013
2012
2011 results
7%
8%
7%
7%
7%
2014
2%
2%
37%
27%
5%
2016
2015
30%
5%
2012 results
2013 results
11%
11%
10%
21%
13%
10%
8%
0%
5%
10%
15%
20%
25%
30%
35%
40%
Source: Environmental Business Journal 2012, 2012 and 2013 Snapshot Surveys; 2009 response:
13% said never; 2010: 25% said never.
US Carbon Policy Forecast
17%
Never
26%
22%
After 2024
9%
23%
2020-2024
13%
26%
2018-2020
32%
9%
2016-2018
13%
C&T
C tax
3%
2014-2016
7%
0%
5%
10%
15%
20%
25%
30%
35%
When do you think the United States will institute a carbon cap-and-trade system similar to the EU-ETS
system in Europe, or that being tested in California; and/or when do you think the U.S. will institute a
carbon tax or fee-for-emissions based system to restrict GHG emissions?
Coal: % of US Electricity Generation
60%
51%
50%
38%
40%
28%
30%
23%
19%
20%
15%
10%
0%
2003
2013
2020
2030
2040
2050
Source: Environmental Business Journal 2014 Snapshot Survey; Coal: U.S. DOE's Energy Information
Administration says coal was 51% of U.S. electricity generation in 2003, and was down to 37-38% in 2012
and 2013, largely on the growth of generation from renewables and natural gas. What percentage of U.S.
electricity generation do you believe coal will represent in 2020-2050?
Coal: % of China Electricity Generation
90%
81%
80%
78%
68%
70%
62%
60%
55%
49%
50%
40%
30%
20%
10%
0%
2007
2012
2020
2030
2040
2050
Source: Environmental Business Journal 2014 Snapshot Survey; Coal: International Energy Agency says
coal was 81% of China's electricity generation in 2007, and was down marginally to 78% in 2012. What
percentage of Chinese electricity generation do you believe coal will represent in 2020-2050?
EBJ Executives: Climate Forecast
8-9°C
1%
7-8°C
1%
6-7°C
1%
5-6°C
5%
4-5°C
12%
3-4°C
26%
2-3°C
16%
1-2°C
11%
0-1°C
19%
Decrease
7%
0%
5%
10%
15%
20%
25%
30%
Source: EBJ 2014 Snapshot Survey; Global Warming: The UN Intergovernmental Panel on Climate Change
says that average global temperatures are expected to increase by 2°C to 4°C from 2010 levels by 2100,
although some scenarios are as little as 0.6°C and as high as 8°C. What global temperature increase do you
predict by 2100? Mean is 2.6°C
Renewables: % of US Electricity Generation
30%
27%
25%
20%
20%
14%
15%
10%
10%
8%
5%
5%
2.4%
0%
2006
2012
2020
2030
2040
2050
2100
Source: EBJ 2014 Snapshot Survey; U.S. DOE's Energy Information Administration says non-hydro
renewable sources were 2.4% of U.S. electricity generation in 2006, and now over 5%, largely on the growth
of generation from wind. What percentage of U.S. electricity generation do you believe non-hydro renewable
sources will represent in 2020-2050? (RE includes wood & biomass: 2012 shares were 37% coal, 30% natural
gas, 19% nuclear and 7% hydro; Other RE: Biomass 1.4%; Geothermal 0.4%; Solar 0.1%; Wind 3.5%)
AEO 2014 Latest Electricity Projection for 2020
Demand is down 3%; NGas takes 12-15pts of share from coal. Wind expands.
Total
4,400
4,500
267
4,000
6
270
3,500
Billion KWhs
2,500
2,000
3
290
754
571
601
16%
SolarPV
988
18
300
Wind
806
3,000
Total
4,525
24
94
255
AEO
2010
779
Geo
200
23
Biomass
170
Hydro
300
Nuclear
883
N.Gas
767
Petro
47
1,268
373
1,500
1,000
1,966
1,594
1,847
1,646
Coal
2093
500
0
1990
Source: EIA AEO 2014
2000
2010
2020p
34
Client Sectors in 2013-15: Top Half
Very
strong
Modest
decline
Big
decline
Strong
Oil & Gas Upstream (E&P)
22%
33%
22%
16%
4%
2%
0%
1
Oil & Gas Midstream
(pipelines/terminals)
12%
29%
31%
22%
4%
0%
2%
1
Healthcare
10%
20%
41%
15%
10%
5%
0%
2
Renewable energy development
4%
27%
31%
24%
13%
0%
0%
3
Chemical
6%
24%
28%
22%
20%
0%
0%
9
Oil & Gas Downstream (refineries)
7%
22%
24%
26%
20%
2%
0%
6
Power utilities
4%
22%
39%
22%
7%
7%
0%
5
Water utilities
2%
20%
24%
24%
27%
2%
0%
8
Solid waste utilities & companies
0%
14%
38%
29%
17%
2%
0%
16
Port authorities
0%
15%
35%
22%
24%
4%
0%
12
Food & beverage
0%
15%
26%
31%
26%
3%
0%
11
Hospitality
3%
17%
25%
19%
31%
3%
3%
13
Education
3%
8%
35%
28%
25%
0%
3%
na
Property developers: commercial
0%
11%
34%
32%
19%
2%
2%
19
Other manufacturing
0%
9%
28%
40%
19%
5%
0%
21
Transportation authorities
2%
8%
31%
31%
19%
8%
0%
17
Good
Source: Environmental Business Journal, 2014 Snapshot Survey
Slow
growth
Flat
2013
Rank
Client Sectors in 2013-15: Bottom Half
Very
strong
Strong
Good
Slow
growth
Flat
Modest
decline
Big
decline
2013
Rank
Property developers: residential
0%
12%
30%
35%
16%
5%
2%
18
Consumer products
0%
8%
23%
44%
23%
3%
0%
20
Major retailers
0%
13%
13%
41%
26%
8%
0%
25
Electronics/computer manufacturing
0%
8%
19%
42%
25%
3%
3%
14
Transportation mfg (auto & aero)
0%
0%
48%
28%
20%
3%
3%
17
Banks & Law Firms
0%
7%
29%
33%
19%
10%
2%
22
Local government
0%
10%
14%
35%
29%
12%
0%
28
Mining
0%
7%
32%
25%
27%
5%
5%
7
Primary metals
0%
5%
20%
33%
35%
8%
0%
10
Metals fabricating/coating
0%
0%
28%
31%
36%
6%
0%
24
Petroleum retail/gas stations
5%
2%
16%
28%
30%
19%
0%
23
State government
0%
10%
10%
38%
25%
15%
2%
27
Pulp & paper
0%
3%
11%
42%
29%
16%
0%
31
Federal government: DOE
0%
0%
20%
33%
30%
13%
4%
30
Federal government: Other
0%
2%
24%
20%
33%
14%
6%
29
Federal government: EPA
2%
2%
13%
26%
35%
13%
9%
26
Federal government: DOD
0%
4%
20%
22%
29%
16%
8%
32
Source: Environmental Business Journal, 2014 Snapshot Survey
Service/Media Categories 2013-15: Top Half
Very
strong
Good
Slow
growth
Flat
Decline
Big
Decline
Strong
Energy efficiency/DR
0%
Water recycling/reuse
38%
40%
18%
3%
3%
0%
2
0%
36%
38%
15%
8%
3%
0%
4
Air quality
5%
26%
42%
21%
5%
2%
0%
3
Renewable energy development
2%
32%
24%
27%
15%
0%
0%
1
Green building design/construct
3%
15%
51%
23%
8%
0%
0%
5
Smart growth/"green" planning
5%
12%
50%
21%
12%
0%
0%
6
Environmental info management
0%
23%
32%
30%
14%
2%
0%
8
Natural resources/ecological
restoration
0%
16%
45%
29%
11%
0%
0%
7
Project management/Construction
mgmt.
0%
19%
37%
33%
9%
2%
0%
13
Wastewater treatment
2%
16%
26%
40%
14%
2%
0%
17
Permitting/compliance
2%
13%
35%
35%
13%
2%
0%
9
Design and project engineering
0%
12%
44%
33%
12%
0%
0%
15
Climate change adaptation
0%
13%
36%
33%
18%
0%
0%
na
Investigations/assessments/audits
0%
18%
32%
36%
5%
9%
0%
14
Industrial hygiene & safety
5%
8%
35%
28%
20%
5%
0%
23
Source: Environmental Business Journal, 2014 Snapshot Survey
2013
Rank
Service/Media Categories 2013-15: 2nd Half
Very
strong
Strong
Good
Slow
growth
Flat
Declin
e
Big
Declin
e
2013
Rank
Investigations/assessments/audits
0%
18%
32%
36%
5%
9%
0%
14
Industrial hygiene & safety
5%
8%
35%
28%
20%
5%
0%
23
Water purification/delivery
0%
11%
39%
39%
8%
3%
0%
10
Solid waste
0%
13%
36%
33%
13%
5%
0%
22
Sustainability/corporate responsibility
0%
12%
26%
47%
14%
2%
0%
16
Outsourced EHS functions
5%
5%
33%
28%
23%
5%
0%
12
Operations & maintenance
0%
13%
26%
39%
16%
5%
0%
24
Carbon/climate change consulting
0%
5%
40%
33%
23%
0%
0%
11
Monitoring & analytical work
0%
12%
24%
45%
12%
7%
0%
18
Private remediation & redevelopment
0%
14%
36%
14%
29%
5%
2%
20
Pollution prevention
0%
2%
32%
44%
17%
2%
2%
19
Ongoing generation of hazardous waste
0%
8%
24%
18%
45%
5%
0%
21
Government remediation/base
closure/conversion
0%
7%
36%
21%
24%
2%
10%
25
Source: Environmental Business Journal, 2014 Snapshot Survey
Ranking of Growth Prospects by US
Geographic Region: 2014-2015
Very
strong
Good
Slow
growth
Flat
Modest
decline
Strong
US: Gulf Coast/Texas
4%
US: Southeast
Big
decline
33%
43%
15%
2%
2%
0%
0%
16%
40%
33%
9%
2%
0%
US: Southern California
0%
19%
30%
35%
12%
5%
0%
US: Mid-Atlantic
0%
15%
43%
26%
13%
0%
2%
US: Northern California
0%
20%
22%
40%
13%
4%
0%
US: Rockies
0%
7%
52%
37%
4%
0%
0%
US: Pacific Northwest
0%
9%
39%
36%
14%
2%
0%
US: Midwest
0%
13%
24%
50%
9%
4%
0%
All United States
0%
8%
33%
46%
8%
4%
0%
US: New England
0%
7%
43%
26%
17%
7%
0%
US: Southwest/Desert
0%
5%
37%
37%
16%
2%
2%
Source: Environmental Business Journal 2014 Snapshot Survey; Question was: Rate regions in terms of
prospects for sales growth in the next two years.
Global Growth Prospects: 2014-2015
Very
strong
Modest
decline
Big
decline
Strong
2013 Rank
Canada
2%
22%
41%
22%
12%
0%
0%
1
China
3%
14%
57%
23%
3%
0%
0%
4
India
0%
18%
56%
18%
9%
0%
0%
9
Brazil
0%
23%
40%
23%
11%
3%
0%
2
South America
0%
19%
46%
19%
11%
5%
0%
3
Emerging World (BRIC)
0%
10%
39%
35%
16%
0%
0%
12
All USA
0%
10%
38%
41%
8%
3%
0%
11
Rest of Asia
0%
9%
43%
29%
20%
0%
0%
7
Developing World (rest)
3%
3%
37%
40%
13%
3%
0%
14
Mexico & C America
0%
6%
44%
33%
14%
3%
0%
8
Dev’d World (OECD)
0%
3%
29%
55%
13%
0%
0%
13
Middle East
0%
15%
27%
24%
24%
6%
3%
5
Africa
3%
0%
33%
33%
27%
3%
0%
10
Australia/NZ
0%
8%
28%
33%
25%
6%
0%
6
Eastern Europe
0%
6%
26%
35%
26%
6%
0%
15
Western Europe
0%
6%
17%
36%
39%
3%
0%
18
Japan
0%
3%
21%
42%
27%
6%
0%
17
Russia
0%
6%
13%
47%
Source: Environmental Business Journal 2014 Snapshot Survey
22%
6%
6%
16
Good
Slow
growth
Flat
U.S. Environmental Co. C&E Revenue: 2012
17.1%
United States
Non-US
82.9%
Source: Environmental Business International Inc., Annual model of the C&E industry
U.S. Env’l C&E Revenue: 1994-2012
18%
16%
14%
12%
10%
8%
6%
4%
2%
0%
1994 1996 1998 2000 2002 2004 2006 2008 2010 2012
Int'l Revenue
Source: Environmental Business International Inc., Annual model of the C&E industry
Distribution of Environmental Consulting &
Engineering Firms in 2012 ($mil)
Size
Big 6>1 bil
Firms
Gross Env'l
C&E Revs
Average
Net Env'l
C&E
Revs
% of
Mkt
% of
Gross
6
10,435
1,739
8,661
30%
31%
46
12,839
279
10,656
37%
38%
Mid 20-100
126
4,725
37.5
4,110
14%
14%
S 10-20
133
1,780
13.4
1,656
6%
5%
S 5-10
184
1,320
7.2
1,241
4%
4%
S 1-5
549
1,464
2.7
1,391
5%
4%
S <1 mil
2,217
1,076
0.5
1,044
4%
3%
Total
3,261
33,640
10.3
28,760
100%
100%
Large>100-999 mil
Source: Environmental Business Journal's annual model of the U.S. environmental consulting &
engineering industry based on annual surveys of C&E firms by EBJ, Ebj interviews, compiled revenue
data derived from various sources including ENR, EFCG, ZweigWhite and public company data.
Share of $100 mil+ Environmental
Consulting & Engineering Firms 1990-2012
Firms
$100m+
Gross Revs
C&E ind
$mil
$bil
Avg Rev
% of Mkt
of 100m+
1990
23
4,190
12.5
30%
182
1995
32
7,694
15.5
44%
240
2000
27
9,626
17.4
49%
357
2005
38
13,896
22.4
55%
366
2009
44
18,157
26.0
65%
413
2010
45
19,438
26.6
64%
432
2011
45
20,307
27.6
64%
451
2012
52
23,274
28.8
69%
448
Source: EBJ database of C&E firms and model of the C&E industry: Environmental
revenues only
Top 20 of EBJ’s Top 700 Environmental
Consulting & EngineeringGross
Firms 2012 ($mil)
Company
Revenues
Env'l Cont/HW
1
CH2M Hill Inc.
7,042
2
AECOM Technology Corp
8,218
-
2,281
3
Tetra Tech Inc.
2,688
636
1,667
4
URS Corporation
11,034
1,901
1,624
5
Golder Associates Corp.
1,411
45
1,228
6
ARCADIS USA Inc.
1,521
60
1,171
7
Battelle Memorial Institute
5,273
-
949
8
ERM
905
-
905
9
MWH Global
1,542
293
785
10,398
-
624
1,635
Env'l C&E
2,465
10
SAIC (Leidos in 9/2013)
11
CDM Smith
1,217
386
464
12
HDR Inc.
1,749
223
415
13
Cardno Ltd. (Entrix, TBE, ERI, TEC, ATC)
653
35
405
14
Antea Group USA (Oranjewoud, former Delta)
2,274
-
387
15
WorleyParsons
7,720
120
386
16
ICF International
-
381
17
Black & Veatch Corp.
3,295
511
369
18
Jacobs Engineering Group
10,900
300
347
19
AMEC Environment & Infrastructure
6,836
174
331
20
Conestoga-Rovers & Associates
463
74
324
930
Shares of Environmental Consulting &
Engineering Firms 1995-2012 ($mil)
1995
2000
2005
2010
2011
2012
704
1,383
1,880
2,200
2,399
2,465
30
355
778
1,768
2,230
2,281
109
466
930
1,414
1,406
1,667
URS Corporation
85
768
1,024
1,461
1,494
1,624
Golder Associates
80
133
363
798
925
1,228
ARCADIS USA Inc.
129
154
450
1,143
1,136
1,171
15,490
17,420
22,350
26,600
27,570
28,780
1,137
3,259
5,425
8,784
9,590
10,435
7%
19%
24%
33%
35%
36%
2,473
4,852
8,337
13,113
13,977
14,869
16%
28%
37%
49%
51%
52%
CH2M Hill Inc.
AECOM Technology
Tetra Tech Inc.
Total C&E
Big 6
Big 6 Share
Big 10
Big 10 Share
Source: EBJ database of C&E firms: Second 4 are MWH, SAIC/Leidos, ERM, Battelle:
Environmental C&E revenues only
Volume XXVI: EBJ in 2013
EBJ Vol XXVI No 12: The U.S. Water Industry
EBJ Vol XXVI No 10 & 11: Environmental C&E Industry Review
EBJ Vol XXVI No 9: M&A 2013
EBJ Vol XXVI No 7/8: Environmental Industry Overview 2013
EBJ Vol XXVI No 5/6: Corp.Sustainability and Sustainability Consulting
EBJ Vol XXVI No 4: Remediation 2013
EBJ Vol XXVI No 3: Outlook 2013: EBJ Snapshot Survey 2013
EBJ Vol XXVI No 2: Future of Fracking: Unconventional Oil & Gas E&P
EBJ Vol XXVI No 1: Executive Q&As and 2012 EBJ Awards
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CCBJ: Volume VI in 2013
•2014 Executive Review & 2013 CCBJ Awards (December 2013)
•Markets in Combined Heat & Power (November 2013)
•Climate Change Industry and the Mining Industry (October 2013)
•Carbon Markets 2013 (August/Sept 2013)
•GHG Mitigation in the Oil and Gas Industry (June/July 2013)
•Finance and the Climate Change Industry (May 2013)
•Transportation: Alternative Fuels & Vehicles (March/April 2013)
•Conventional Power: 2013 Outlook for Fossil & Nuclear
(January/February 2013)
Climate Change Industry Leaders ($bil in CCI)
Company
Global CCI
Revenues
1 Siemens AG
25920
2 GE
18460
3 Johnson Controls Inc.
12100
4 Toyota Motor Co.
11500
5 Vestas
7680
6 Alstom
7200
7 Honeywell International
6590
8 Schneider Electric
6530
9 ABB
5700
10 Mitsubishi Heavy Industries
5600
11 Enercon
5200
12 Sinovel
4920
Source: EBI Inc., San Diego, Calif.
50
March 12-14, 2014 - 12th Anniversary
Hilton San Diego Bayfront
CLIMATE CHANGE BUSINESS JOURNAL®
•2014 quarterly publication schedule
plus Executive Review edition
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climate change mitigation and
adaptation
March 12-14, 2014 - 12th Anniversary
Hilton San Diego Bayfront
CCBJ History
• Launched in 2007
• Gained wide respect in consulting & engineering
industry and climate policy community
• Chronicled growth of climate change markets despite
decline in policy drivers in US
• In 2014, with climate risks more evident, climate
policy drivers are growing again and focus on adaptation
is increasing
March 12-14, 2014 - 12th Anniversary
Hilton San Diego Bayfront
CCBJ Value Proposition
• Strategic market intelligence (where are the
opportunities for your firm?)
• Competitive analysis (who’s doing what and how
they are positioned)
• Big picture: where are the markets for climate
change mitigation and risk management/adaptation
headed in the next two to 10 years?
Grant Ferrier
President, Environmental Business International, Inc.
Chairman, Environmental Industry Summit
Editor, Environmental Business Journal
Editor, Climate Change Business Journal
4452 Park Blvd. #306, San Diego CA 92116, 619-295-7685 ext.15
grant@ebimailbox.com; gf@climatechangebusiness.com
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