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Growth in the EH&S Software Market is Good News for Firms of all Shapes and Sizes

In a previous blog, Verdantix reported that EH&S software firm Intelex Technologies raised $123 million ($CAD 160 million) in funding from JMI Equity and HarbourVest. By itself, this investment gives you a good clue that the EH&S software market is trending upward. When combined with the plethora of other investment activity, consolidation and product innovation, Intelex’s funding round is bona fide validation that the EH&S software landscape is destined to reach new heights.

This is great news for global firms looking to develop cutting-edge enterprise scale solutions, but also for smaller firms comfortably operating in a niche. Witness IndustrySafe, a health and safety software product of Transportation Resource Associates (TRA). Originally a transportation consultant, TRA has been in the EH&S software arena since 2005. Using their in-house knowledge of transportation (rail, auto, shipping, etc.), IndustrySafe has built up a strong client base in this sector, as well as construction, manufacturing, and oil and gas. Operating with under 20 employees, the team has been able to amass around 300 clients with their capable safety offering which focuses on incident management, behavioral-based safety (BBS), industrial hygiene, and hazard management.

Instead of a growth mentality anchored in expanding the breadth of their capabilities, they are focusing on refining and enhancing the core safety abilities of their solution, and to grow revenues organically.  This has paid dividends with 25%-30% year-on-year growth rates, and revenues that make up nearly half of TRA’s overall earnings, even though the IndustrySafe proposition accounts for only a third or so of the total employees. Other specialized EH&S software firms, such as occupational safety specialist Groupe ID CONFORMiT, have also enjoyed double digit growth on the back of a focused strategy and sound execution.

In addition to taking advantage of a market that is set to reach $1.2 billion in 2019, nearly double its value in 2014, smaller specialty firms operating in specific geographies have a real possibility of being acquired or partnered with. Although “one-stop-shop” software platforms like Enablon or Gensuite are enjoying great success, it is certainly not the only way to make it in this dynamic and lively market. This presents alternative growth avenues if a firm is looking to break out of their niche. Although “one-stop-shop” software platforms like Enablon or Gensuite are enjoying great success, it is certainly not the only way to make it in this dynamic and lively market.