1. Environmental Consulting
Competitive Analysis
Wade Armstrong
Garrett DeBernardi
Tim Lewis
Lane Naramore
Quinton Poole
Rob Warren

2. Agenda
• Industry Overview
• Major Players
• Survey Results
1. Types of Consulting Services
2. Services Most Often Requested
3. Most Common Industries Served
4. Most Common Areas Served
5. Service Compensation
• Summary
• Recommendation

3. Stakeholders
• Client
– Dr. Darrell Dechant
• Director, Dept. of Environmental and Industrial Programs,
College of Continuing Studies
– College of Continuing Studies
• Advisor
– Billy Hatmaker, GBA 526 Instructor
• Team
– Wade Armstrong
– Garrett DeBernardi
– Tim Lewis
– Lane Naramore
– Quinton Poole
– Rob Warren

4. Project Scope & Charter
• Develop a comprehensive competitive
analysis of the environmental services
consulting industry as it pertains the
Southeast and Alabama in particular

5. Industry Overview:
Definition
Definition
Consultation to businesses and federal
governments on environmental issues
regarding, but not limited to, the following:
– Contamination control consulting
– Risk evaluation
– Air and water quality consulting
– Site remediation consulting
– Sustainable development consulting

6. Industry Overview:
Products/Services
Major Products & Services Offered:
– Air quality management
– Water quality management
– Compliance/auditing
– Soil quality management
– Sustainability studies/consulting
– Noise pollution monitoring and prevention

7. Industry Overview:
Revenue Growth

8. Industry Overview:
Establishment/Enterprise
Growth

9. Industry Overview: Product
& Services Segmentation

10. Industry Overview: Major
Market Segments
Private Firms
•Approximately 80% of the revenues
•Construction, manufacturing, government and energy industries (62.2% of revenues)
•Mining and forestry industries (16.0% of revenues)

11. Industry Overview: Analytic
Conditions
• Barriers to Entry—Low
• Taxation—Nonexistent
• Industry Assistance—Nonexistent
• Regulation and Deregulation—Low
• Capital and Labor Intensity—Low
• Technology and Systems—Low
• Volatility—Medium
• Globalization—Low (increasing)

12. Industry Overview:
Employee Volume
•Concentration extremely low
•Four largest firms in the industry = 6.7% of industry revenue
•66.1% of all firms in 2010 will employ 1-4 individuals
•Approximately 82.3% will employ 1-9 individuals
•Concentration projected to remain fairly steady due to low barriers to entry
•As larger firms acquire smaller firms industry concentration may increase in far future

13. Industry Overview:
Establishments by Region
•Southeast, Great Lakes, West, and Mid-Atlantic regions make up approximately 71.9% of entire industry
•Concentration of competing firms is tied to concentration of major clients and demand for services

14. Industry Overview: Key
Success Factors• Ability to secure contracts
• Effective cost controls
• Access to multi-skilled and flexible workforce
• Ability to negotiate successfully with regulator

15. Industry Overview:
Revenue Projections

16. Major Players
• CH2M Hill
– 3% market share
– $532.6 million in total Revenue
– Birmingham, Mobile and Montgomery
– Engineering, consulting and construction services
– Federal, Civil infrastructure and Industrial
– Environmental consulting < 10% of total revenue

17. Major Players
• Malcolm Pirnie
– 2.5% market share
– Birmingham and Mobile
– $443.8 million in total revenue
– Consulting, engineering and management
services
– Exhibited 5.8% growth last year

18. Major Players
• TRC Companies, Inc.
– 1.3% market share
– $209 million in total revenue
– Environmental, energy/power and infrastructure
engineering and consulting services
– Investigation, and remediation of impaired sites,
licensing of facilities, environmental compliance
and auditing support
– Expanding its business with the increase in
government regulations.

19. Survey Methodology
• Identified actual consulting firms in the
state from large list
• Narrowed larger question list to five
– Services Offered
– Services Requested
– Industries Most Often Served
– Areas Most Often Served
– Rates
• Phoned firms

20. Types of Consulting
Services
• Most companies have one or more area of
expertise, but offer a wide range of
services
• Some of the common areas include
asbestos/hazardous materials removal;
air/water/soil treatment; underground storage
tank service
• Some of the specific areas are conservation
services; geological services, and brownfield
remediation

21. Services Most Often
Requested
• Most Common
– Environmental Compliance
– Waste Management
• Depending on the area of expertise within the
company, niche services are the most
frequently requested among the companies
surveyed
• According to Randy Payne, the economic
environment of late has dictated the services
requested from his firm

22. Most Common Industries
Served
• Government
• Industrial Manufacturers
• Commercial and Residential Developers
• General Contractors
• Mining/Exploration

23. Most Common Areas
Served
• All of the firms surveyed are based in, or
operate heavily, in the Southeastern
United States
– Alabama is the most commonly served state
– Scattered due to level of manufactures in the
state and current economic conditions
– Some serve areas across the Southeast and
even nationwide

24. Service Compensation
• Most firms reluctant to answer this question
• Fees can and are based both on the type of
service requested, as well as time spent
working on the service
– Some services are billed by the hour, while others
are fixed rates or depend on materials usage
– Usually ranges from $60/hr-$260/hr depending
on level of expertise and the project itself
– Most fell in the range of $90/hr-$150hr

25. Summary
• Industry Lifecycle Stage – Growth
• Over 60% Revenues
– Construction/Manufacturing
– Government
– Energy
• Over 50% of firms employ 1-4 people
• Average Salary - $65,000
• Key Success Factors
• Competitors

26. Recommendation
• Not too many major names
– Mostly small firms
• University’s “Brand Name”
• Test the Waters
– Focus on construction, manufacturing, gov’t and
energy
• Full Program
– Niche Services (emergency planning,
underground storage, hydrocarbon leakage, etc.)

27. Questions?