Verdantix Says Many US Engineering Firms Will Miss Out On The Sustainable Infrastructure Market
New York, USA. September 13, 2010. Some of the best known design and construction firms in the US market lack the sustainability credentials, market strategies and domain expertise to profit from the emerging market for sustainable engineering, according to a new report from independent analyst firm Verdantix. The study compares 19 of the largest US engineering firms, with combined revenues of $129bn, on 45 criteria covering utility scale renewable energy, on-site renewables, green buildings, water management, waste, hydrogen transport, smart grid and electric vehicles. Firms included in the study are AECOM, AMEC, Arcadis, Bechtel, Black & Veatch, CH2M HILL, Fluor, Golder Associates, HDR, Jacobs Engineering, Kiewit, MWH, Parsons Brinckerhoff, Parsons Corporation, SAIC, Shaw Group, Stantec, Tetra Tech and URS Corp.
“The US sustainable business market will grow from $28bn in 2010 to $60bn in 2014 with growth accelerating from 2012” commented Verdantix Director, Rodolphe d’Arjuzon. “The recent $50bn infrastructure funding announced by the Obama Administration comes on top of green stimulus cash targeted at smart grid and renewable energy investment. But many conservative-minded engineering firms have failed to define sustainability strategies, lack connections with innovators in the sustainable business ecosystem and are locked into fossil fuel thinking. By contrast firms like CH2M HILL make sustainability a strategic objective and this delivers business success in the emerging, fast-growing sustainable engineering market.”
The Verdantix report, Green Quadrant® Sustainable Engineering US, took four months to complete and includes interviews with an independently recruited panel of 15 customers of engineering firms in the private and public sectors as well as with national leaders of engineering firms. Key findings of the study:
CH2M HILL and URS Corp offer the strongest sustainable engineering capabilities. Across 9 categories of engineering expertise spanning renewable energy, green buildings, industrial facilities, water, waste, smart grid, electric vehicles and hydrogen transport, CH2M HILL and URS Corp offer the broadest set of capabilities and the most compelling sustainability differentiators. SAIC, Shaw Group and Stantec are also active in virtually all sustainable engineering market segments with strong or leading capabilities compared to their peers.
Six firms lead the US sustainable engineering market. Among the 19 firms analyzed, just 6 combine the engineering capabilities and sustainability strategy to reach the Leaders Quadrant in the competitive analysis. CH2M HILL is the standout Leader, with AECOM, AMEC, SAIC, Stantec and URS Corp also positioned in the Leaders Quadrant. To achieve leadership firms must demonstrate strategic and organizational commitment to sustainability as well as delivering world class engineering projects for customers.
Many engineering firms held back by weak sustainability performance. The customer panel indicated that they would hire engineering firms with strong internal sustainability credentials. But many of the largest players in the market, like Bechtel and Fluor, do not focus sufficient resources on their own sustainability strategy to meet the requirements of the independent customer panel. Buying criteria include innovation for sustainability, a track record in delivering sustainability projects and implementing an internal sustainability strategy.
“Firms like Black & Veatch, Parsons Brinckerhoff and Tetra Tech have broad sustainability offerings with strength in areas such as smart grid or green buildings.” commented Peter Charville-Mort, the Verdantix Analyst who authored this report. “They also have strong mindshare with customers. But if these firms want to improve win rates and competitive positioning for renewable energy, smart grid, water, waste, carbon reduction, energy efficiency, and electric vehicle projects, they need to demonstrate a strategic commitment to sustainability themselves. This is true even if the firm has a strong capability, for instance Black & Veatch’s work on smart grid. These firms should follow the example of AECOM and appoint a Chief Sustainability Officer with access to the C-Suite. In such large organizations it will take 3 years to make the necessary organizational adjustments, to agree on multi-year performance objectives and get buy in from skeptical general managers across the firm.”
The report, Green Quadrant® Sustainable Engineering (US), is available to download by Verdantix clients at: www.verdantix.com.
About Verdantix
Verdantix is the fastest-growing, independent, analyst research firm focused on sustainable business strategies and market opportunities. For more information visit: www.verdantix.com.
Press Contact
Elinor Newman-Beckett, press@verdantix.com
+44(0)203 371 6792
Monday, 13 September 2010