Benchmarking Environmental Services Providers in the Post Mega-Merger Era
The past decade has been a tumultuous one for the US environmental services market. The timeline includes the likes of a global financial crisis, a flurry of mega-deals between engineering and environmental titans, breakthroughs in information management and its associated environmental performance optimization potential, plummeting oil and gas prices, and, as always, countless new pieces of legislation. These key events translate to an incredibly dynamic competitive landscape, as well as volatility in service line growth and retraction. As 2016 enters its closing quarter, what is the current state of the market? In what ways will it look different than it did previously?
One is via the reduction in the number of mega-deals. Between 2013 and 2015, it seemed as if there wasn’t a single engineering or environmental services firm that wasn’t at the dance and actively seeking a partner. AECOM acquiring URS Corporation for $6 billion, Ramboll acquiring ENVIRON (monetary details undisclosed), and the $1.3 billion WSP Global - Parsons Brinckerhoff Group deal exemplify this trend. Now, acquisitions will be smaller and more focused in nature, such as Tetra Tech’s acquisition of analytics firm Indus Corporation to bolster its water data management capabilities.
Another way is that information technology capabilities will ascend the totem pole in terms of important differentiators for environmental service providers. Currently, a competent information management solution for an environmental service provider means that it can help a firm more efficiently collect its data, build a custom application, or help a firm select and implement out-of-the-box software from vendors like Gensuite, ProcessMAP and SAP. EH&S IT is increasingly entering a phase in which consultants spend far more time on change management and process design than they do on software implementation and IT systems integration. Although the rise of the Internet of Things will add new dimensions to data capture and aggregation.
Verdantix provides an overview of the current state of the market and services firm capabilities in the recently published report, US Environmental Services Green Quadrant. Register for this Verdantix webinar and be the first to learn where prominent environmental services providers stand within the US market based on the results of our independent benchmark. In the webinar, we will provide an in-depth analysis of both the service line capabilities and market momentum for 15 key players in the US environmental services market, including AECOM, Arcadis, Atkins, CDM Smith, CH2M, ERM, Golder Associates, Ramboll Environ, Tetra Tech, and TRC.