Growth in the $7.6 Billion U.S. Remediation Market Slips in 2014 Despite Rebound in the Private Sector

Share

News Release -- San Diego, Calif. -- The U.S. environmental remediation market declined 2% in 2014 as larger companies lost share, although it was an improvement over the 4% decline reported in 2013, according to Environmental Business Journal's annual review of the remediation market.

EBJ's annual remediation survey, conducted in March-April 2015, showed that for the more than 50 respondents reporting remediation revenues in 2014, the median growth rate was 4-5% and mean growth was 3.6%. However, after taking into account the decline in remediation revenues of multi-disciplinary billion-dollar leaders like Bechtel, CB&I, AECOM, TetraTech, CH2M and ARCADIS in 2014, EBJ’s annual growth estimate was adjusted downwards.

See TOC and Purchase EBJ 2015 U.S. Remediation Markets edition for $250

The $7.6-billion U.S. remediation market-still the most vibrant remediation market of size in the world-has not exceeded 4% annual growth since 2007, but the theory that remediation would inexorably decline as contaminated sites were cleaned up and compliance increased hasn't been borne out, according to EBJ. Economic growth and the ongoing discovery of contaminated sites, in addition to opportunities for infrastructure reuse, have countered conjecture that the remediation market would eventually disappear. "While society's ongoing need for remediation and restoration may not represent a spectacular growth opportunity, the market is steady," said Grant Ferrier, publisher of EBJ.

Segments within the remediation market wax and wane, however. Cutbacks to big government cleanup and restoration programs were largely responsible for the decline in the U.S. remediation market in 2013 and 2014. But growth in the private sector has improved as cleanup projects delayed by recession are now being funded and companies are seeking to remove liabilities from their books and return sites to productive use.

Based on interviews with top remediation executives and the results of EBJ's "Remediation Survey 2015: Market Breakdowns & Forecast," growth niches in remediation include manufactured gas plants, a growing emphasis on sediments, on-site treatments, and the transitioning coal power infrastructure. Companies that specialize in addressing contamination caused by the use of chlorinated solvents also stand to do well as sites where such solvents were used for parts cleaning (military bases, aerospace facilities, electronics production facilities) are targeted for return to productive use. The brownfields market is also in relatively good health, EBJ concluded.

"For years, thriving and surviving in the remediation market has meant being nimble enough to cut and run out of slow markets, or identify new pockets of opportunity and be able to jump in," said Ferrier. "Those pockets may vary by client sector or by site type, or as new classes of contaminants or categories of old facilities draw the attention of regulators."

According to EBJ's Remediation Survey, revenues generated in the U.S. remediation market in 2014 were derived 33% from groundwater cleanup; 26% from contaminated soil; 9% from sediments (lakes, rivers, bays); and 9% from surface water quality (runoff, stormwater, spills), with cleanup associated with landfills, buildings and ecological habitat comprising the remainder.

Merger and Acquisition Activity Remains High in Remediation

Both strategic and financial investors kept up activity in the remediation segment in 2014-15. This EBJ edition includes analysis of deals and partnerships such as Pritzker's acquisition of Entact; CH2M Hill and Apollo; ERM and Omers Private Equity; Great Lakes Dredge & Dock Corp.'s acquisition of Magnus Pacific; and the merger of LVI Services Inc. and NCM Group Holdings, two leading providers of demolition and remediation, to form NorthStar Group Holdings.

EBJ's Remediation edition 2015 is replete with growth charts and proprietary data including:

  • Revenue growth in remediation
  • Number of U.S. hazardous waste sites
  • Prospects in remediation markets
  • Remediation client market rating
  • Remediation revenues by project type
  • Breakdown of remediation by contract type
  • Ranking of remediation technologies applied on active sites, 2008-2015

Also covered in this edition:

Changes to contracting vehicles, brownfields redevelopment, sustainable remediation, M&A activity and profiles of leading remediation contractors including SCS Engineers, TerraTherm, Trihydro, Soil-Therm, Regenesis and Envirocon.

See TOC and Purchase EBJ 2015 U.S. Remediation Markets edition for $250

For comment and access to research, contact:
Grant Ferrier, President, EBI Inc.
619-295-7685 ext 15
This e-mail address is being protected from spambots. You need JavaScript enabled to view it

For assistance and support, contact:
619-295-7685 ext 13
This e-mail address is being protected from spambots. You need JavaScript enabled to view it

About EBI | About EBJ | More News Releases

 
U.S. Environmental Industry Generates $363 Billion in Revenues - December 2016
News Release -- San Diego, Calif. -- The U.S. environmental industry grew 3.5% in 2015, according to research and data compiled by Environmental Business International Inc. (EBI, San Diego, Calif.), publisher of Environmental Business Journal. The environmental industry's $363.3 billion in total revenues represented 2.83% of U.S. gross domestic product (GDP) in 2015. In 2016, EBI forecasts that the U.S. environmental industry will grow 3.7%, with annual average growth in 2017-2019 of 3-4%.
Read more...
U.S. Water Industry Revenues Rise 3% To $160 Billion - December 2016
News Release -- San Diego, Calif. -- The U.S. Water Industry grew 3% in 2015, generating $160 billion in revenues, according to Environmental Business Journal, a publication of Environmental Business International Inc.
Read more...
Now Open: 2016 Environmental Industry Awards - December 2016
News Release -- San Diego, Calif. -- Environmental Business Journal (EBJ) and sister publication Climate Change Business Journal (CCBJ) are inviting nominations for the annual EBJ-CCBJ Awards. The awards are open to all companies in the environmental industry and climate change industry, including those in environmental consulting & engineering, water/wastewater, air pollution control, resource recovery, solid waste, hazardous waste, technology and equipment, analytical services and clean energy, in addition to several climate change business segments.
Read more...
U.S. Environmental Contracting Business Grows to $24.5 Billion in Revenues - July 2016
News Release -- San Diego, Calif. -- The U.S. Environmental Contracting* business generated $24.5 billion in revenues in 2015, with Remediation & Industrial Services contributing $13.6-billion and Hazardous Waste Management contributing $10.9-billion, according to new research by Environmental Business International Inc., publisher of Environmental Business Journal (EBJ).
Read more...
EBJ Announces Top 10 Transactions in U.S. Environmental Consulting & Engineering Industry - April 2016
News Release -- San Diego, Calif. -- Environmental Business International Inc., publisher of Environmental Business Journal (EBJ), has published its annual list of top 10 mergers and acquisitions (M&As) in U.S. environmental consulting & engineering (C&E) in 2015.
Read more...