Environmental Industry Review 2014 Grant Ferrier Editor, Environmental Business Journal Editor,...

Environmental Industry Review 2014Grant Ferrier

Editor, Environmental Business JournalEditor, Climate Change Business Journal

President, Environmental Business International, Inc.Chairman, Environmental Industry Summit XII, March 12-14, 2014

May 2009

Presentation Outline

Environmental Industry: Economics & Statistics; Trends

Key Growth Factors in 2010s

EBJ 2014 Snapshot Survey Results

Key Client Sectors

Consulting & Engineering Segment

EBJ & CCBJ

Environmental Industry in Context: Growth

-4%

-2%

0%

2%

4%

6%

8%

10%

89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13

USA GDP growth Environmental Industry growth

SOURCE: EBI Inc., San Diego CA; Annual segment-by-segment research; government shutdowns in 1995-96 and October 2013

Environmental Industry: Economic Stats

1,733,500 49,812 117,470 343.3 Totals:

128,100 3,360 2,120 38.2 Clean Energy Systems & Power

93,100 19,428 4,950 30.4 Resource Recovery

196,100 107 61,500 50.8 Water Utilities

29,400 158 390 2.0 Process & Prevention Tech.

75,600 4,225 820 11.4 Waste Management Equipment

98,600 2,453 1,710 15.5 Air Pollution Control Equipment

39,500 2,882 660 5.9 Instruments & Info. Systems

166,000 10,776 1,990 28.7 Water Equipment & Chemicals

261,600 4,861 3,370 28.8 Consulting & Engineering

111,000 816 2,080 13.6 Remediation/ Industrial Svcs.

47,400 121 520 10.1 Hazardous Waste Management

285,400 249 10,150 55.3 Solid Waste Management

181,900 254 26,270 50.9 Wastewater Treatment Works

19,800 123 940 2.0 Analytical Services

Employment 2012

Exports 2012 $mil

Companies Entities

Revenues $bil

1,733,500 49,812 117,470 343.3 Totals:

128,100 3,360 2,120 38.2 Clean Energy Systems & Power

93,100 19,428 4,950 30.4 Resource Recovery

196,100 107 61,500 50.8 Water Utilities

29,400 158 390 2.0 Process & Prevention Tech.

75,600 4,225 820 11.4 Waste Management Equipment

98,600 2,453 1,710 15.5 Air Pollution Control Equipment

39,500 2,882 660 5.9 Instruments & Info. Systems

166,000 10,776 1,990 28.7 Water Equipment & Chemicals

261,600 4,861 3,370 28.8 Consulting & Engineering

111,000 816 2,080 13.6 Remediation/ Industrial Svcs.

47,400 121 520 10.1 Hazardous Waste Management

285,400 249 10,150 55.3 Solid Waste Management

181,900 254 26,270 50.9 Wastewater Treatment Works

19,800 123 940 2.0 Analytical Services

Employment 2012

Exports 2012 $mil

Companies Entities

Revenues $bil

2012 US Environmental Trade Balance ($bil)

SOURCE: EBI Inc., San Diego CA, units in $bil. US ind is revenues generated by US cos worldwide. US mkt is revenues from US customers.

Equipment US ind US mkt surplus exports imports %export

Water Equipment & Chemicals 28.7 24.3 4.4 10.78 6.4 38%

Air Pollution Control 15.5 16.8 -1.3 2.45 3.8 16%

Instruments & Info. Systems 5.9 3.4 2.5 2.88 0.4 49%

Waste Mgmt Equipment 11.4 9.3 2.1 4.23 2.1 37%

Process & Prevention Tech. 2.0 2.0 0.0 0.16 0.2 8%

Services

Solid Waste Management 55.3 55.6 -0.4 0.25 0.6 0.5%

Hazardous Waste Mgmt 10.1 10.0 0.0 0.12 0.1 1%

Consulting & Engineering 28.8 25.9 2.9 4.86 2.0 17%

Remediation/Industrial Svcs. 13.6 13.3 0.3 0.82 0.5 6%

Analytical Services 2.0 1.9 0.1 0.12 0.1 6%

Water Treatment Works 50.9 51.7 -0.9 0.25 1.1 0.5%

Water Utilities 50.8 52.3 -1.5 0.11 1.6 0.2%

Resource Recovery 30.4 11.7 18.7 19.43 0.8 64%

Clean Energy Systems & Power 38.2 47.4 -9.2 3.36 12.6 9%

Total 343.3 325.8 17.5 49.8 32.3 14.5%

Environmental Industry in Context: Average Annual Growth Rate by Decade

70s 80s 90s 00s

Analytical Services 15% 21% -1% 0%

Water Treatment Works 6% 5% 5% 5%

Solid Waste Management 6% 5% 5% 3%

Hazardous Waste Management 16% 28% 3% 1%

Remediation/Industrial Services 17% 22% 1% 2%

Consulting & Engineering 35% 25% 5% 5%

Water Equipment & Chemicals 16% 7% 4% 3%

Instruments & Information 14% 17% 8% 4%

Air Pollution Control Equipment 33% 10% 5% -1%

Waste Management Equipment 9% 7% 2% 1%

Process & Prevention Technology 14% 16% 14% 6%

Water Utilities 5% 5% 4% 4%

Resource Recovery 11% 8% 2% 7%

Clean Energy Systems & Power 20% 3% 3% 20%

TOTALS 9% 8% 4% 4%

Industry Context

Environmental Industry

Climate Change Industry

The Green

Economy

2012 Climate Change Industry ($bil)

SOURCE: EBI Inc., San Diego CA, units in $bil. US ind is revenues generated by US cos worldwide. US mkt is revenues from US customers.

21%5%1,39815%291.2Total Climate Change Industry

37%2%10.13%3.7Research/C&E

33%16%2.216%0.7Adaptation

2%-35%103.018%1.7Carbon Markets

19%10%522.416%101.4Transportation

32%10%200.612%64.6Green Buildings

31%30%18.327%5.8Energy Storage

32%4%200.34%63.2Energy Efficiency & DR

11%34%4.2149%0.4Carbon Capture & Storage

15%16%336.632%49.6Low-Carbon Power

% USA2012

GrowthGlobal2012

GrowthUSA

21%5%1,39815%291.2Total Climate Change Industry

37%2%10.13%3.7Research/C&E

33%16%2.216%0.7Adaptation

2%-35%103.018%1.7Carbon Markets

19%10%522.416%101.4Transportation

32%10%200.612%64.6Green Buildings

31%30%18.327%5.8Energy Storage

32%4%200.34%63.2Energy Efficiency & DR

11%34%4.2149%0.4Carbon Capture & Storage

15%16%336.632%49.6Low-Carbon Power

% USA2012

GrowthGlobal2012

GrowthUSA

C&E: Growth Factors in 2000s… and 2010s

Real Estate: Development, transactions, speculation, infill, brownfields. Also M&A, GDP, stock market, investment.

Federal Markets: DOE and DOD budgets and accelerated cleanup & closure; energy programs…. Cuts & sequestration

Oil & Gas: Record prices and record profits by oil companies…. Fracking and North America renaissance; Upstream, Midstream, Downstream… Exports

Commodity Prices: Mining & Natural Resources; Energy, Water, Food… Up & Down

Environmental disasters to climate change: HW to Katrina to BP to Sandy… Response to risk; Adaptation & Resiliency

Water & Wastewater: 36% of C&E revenues; stable-growthSource: EBJ

President’s Budget Request for FY2015: $3.9T

10http://www.washingtonpost.com/wp-srv/special/politics/presidential-budget-2015/

11

EPA Budget for FY2015 shows erosion…

Source: EPA Budget in Brief

Cutbacks focused in infrastructure finance, state water revolving funds.Cutbacks focused in infrastructure finance, state water revolving funds.

Dems lose House in 2010

DOD FY15 Proposal: Army on diet; Reform in QDR

12

Troops coming out for draw down; but baseline remains defended by Congress.

http://www.defenseindustrydaily.com

http://www.defenseindustrydaily.com/

EBJ Survey 2012 & 2013 & 2014 Results: SEGMENT Mean Growth

Source: Environmental Business Journal, 2012 & 2013 & 2014 Snapshot Survey

3.7%3.3%

3.8%

4.7%

5.4%

4.7%

3.8% 3.7%

4.1%

0%

1%

2%

3%

4%

5%

6%

2012 2013 2014 est. 2015 est.

2014 Survey 2013 Survey 2012 Survey

EBJ Survey 2012 & 2013 & 2014 Results: COMPANY Mean Growth

Source: Environmental Business Journal, 2012 & 2013 & 2014 Snapshot Survey

1.0%

3.3%

4.1%

5.5%

3.5%

5.2%

6.1%

0.4%

3.7%

4.3%4.7%

7.1%

8.1%

1.2%

5.1%

2.6%

6.2%

3.9%

0%

1%

2%

3%

4%

5%

6%

7%

8%

9%

2009 2010 2011 2012 2013 2014 est. 2015 est.

2014 Survey 2013 Survey 2012 Survey

EBJ Survey 2013 Results: COMPANYMean Growth (Jan-Feb 2013: n=91)

Source: Environmental Business Journal, 2013 Snapshot Survey

4.3%

8.1%

7.1%

4.7%

0.4%

3.7%

0%

2%

4%

6%

8%

10%

2009 2010 2011 2012 2013est.

2014est.

EBJ Survey 2014 Results: COMPANYMean Growth (Jan-Feb 2014: n=88)


4.1%

5.2%6.1%

1.0%

3.3%

5.5%

3.5%

0%

2%

4%

6%

8%

2009 2010 2011 2012 2013 2014 est. 2015 est.

EBJ Survey 2013 & 2014: Spread of COMPANY Growth: Polarization

Source: Environmental Business Journal, 2013 and 2014 Snapshot Survey

6%

4%

8%

18%

32%

16%

2%

14%

5%

14%

19%

14%

14%

9%

10%

16%

0% 5% 10% 15% 20% 25% 30% 35%

Less than –10%

-2% to -10%

1% to -2%

1-5%

5-10%

10-15%

15-20%

More than 20%

2012 Growth 2013 Growth

Operating Margins: 2009-2014


5.8%6.3%

6.8%7.2% 7.2%

8.9%

0%

1%

2%

3%

4%

5%

6%

7%

8%

9%

10%

2009 2010 2011 2012 2013 2014 est.

Change in Operating Margin in 2012

Source: Environmental Business Journal, 2013 Snapshot Survey; All +1.0; C&E +0.4

5%

3%

5%

15%

11%

13%

16%

13%

8%

6%

5%

0% 5% 10% 15% 20%

Fallen more than 10 points

Dow n 5-10 percentage points

Dow n 3-5 points

Dow n 1-3 points

Dow n 0-1 points

The same

Up 0-1 points

Up 1-3 points

Up 3-5 points

Up 5-10 percentage points

Up more than 10 points

Change in Operating Margin in 2013

Source: Environmental Business Journal, 2014 Snapshot Survey; All firms -0.2; C&E +0.3

6%

13%

9%

13%

2%

13%

4%

17%

9%

6%

9%

0% 5% 10% 15% 20%

Fallen more than 10 points

Dow n 5-10 percentage points

Dow n 3-5 points

Dow n 1-3 points

Dow n 0-1 points

The same

Up 0-1 points

Up 1-3 points

Up 3-5 points

Up 5-10 percentage points

Up more than 10 points

When Will US GDP Exceed 3.5% Again?

Source: Environmental Business Journal, 2013 & 2014 Snapshot Survey; When do you think USA annual GDP growth will exceed 3.5% again as it last did in 2004 and in 1996-2000? (Consensus figures for US GDP growth in 2011, 2012 and 2013 are 1.8%, 2.2% and 1.8%, respectively.)

17%

29%

23%

14%

4%

8%

6%

2%

17%

28%

16%

10%

19%

7%

0% 5% 10% 15% 20% 25% 30%

2014

2015

2016

2017

2018

After 2018

Never 2013 Results 2014 Results

Stock Market in 2014: Dow Jones IA Forecast

Source: Environmental Business Journal 2014 Snapshot Survey; The Dow Jones Industrial Average passed a previous October 2007 high point of 14,160 in February 2013, and has kept advancing to around 16,500 in January 2014, or a 2013 gain of more than 20%. What percentage performance do you predict for the DJIA in 2014?

1%

1%

1%

11%

4%

12%

27%

33%

9%

2%

0% 5% 10% 15% 20% 25% 30% 35%

-20% or more

-15 to -20%

-10 to -15%

-5 to -10%

-1 to -5%

flat or 1% to -1%

1-5% gain

5-10%

10-15%

15-20%

Residential Property: When will we get back to 2006 peak value?

Source: Environmental Business Journal 2014 Snapshot Survey; Housing Prices: When do you think average national US residential housing prices will get back to their Q2 2006 peak value? (Note: S&P 20-City Index bottomed out at 66% of the Q2 2006 average value in Q2 2009 and meandered between 66-70% until Q2 2012 before raising very steadily to end 2013 at 78% of Q2 2006 peak value.)

1%

10%

19%

20%

17%

31%

2%

0% 5% 10% 15% 20% 25% 30% 35%

2014

2015

2016

2017

2018

After 2018

Never

Oil Prices: When will crude hit $140/bbl again?

Source: Environmental Business Journal 2014 Snapshot Survey; When do you think spot crude oil prices will hit $140/barrel like they did in July 2008? (Note: 2010 prices were $75-90/barrel, 2011 $80-100/barrel, 2012 $85-105/barrel and 2013 $100-120/barrel.)

12%

25%

19%

6%

6%

21%

10%

0%

17%

16%

11%

6%

31%

20%

0% 5% 10% 15% 20% 25% 30% 35%

2014

2015

2016

2017

2018

After 2018

Never

2013 Survey 2014 Survey

When will US natural gas prices hit spot prices of $10-13/MMBtu again?

Source: Environmental Business Journal 2013 & 2014 Snapshot Survey: When do you think USA natural gas prices will hit April-June 2008 or August-December 2005 spot prices of $10-13/MMBtu again? (2009-2010 prices were $3-6, 2011 $3-4.5, 2012 prices were $2-3.5/MMBtu, 2013 prices were $3.20-4.40/MMBtu.)

2%

13%

11%

2%

9%

43%

21%

8%

3%

6%

9%

4%

55%

16%

0% 10% 20% 30% 40% 50% 60%

2014

2015

2016

2017

2018

After 2018

Never

2013 Results 2014 Results

U.S. Weighted Annual Average Coal Prices Compared to Natural Gas ($/MMBtu)

Source: Climate Change Business Journal, February 2013 issue derived from Henry Hub, US DOE, Navigant/Ventyx and others

0

1

2

3

4

5

6

7

8

9

10

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Gas Coal

Global Coal Consumption in Million Tonnes

Source: BP 2013 Statistical Review of World Energy; Asia 70% of total in 2012; NA -11% in 2012

0

500

1000

1500

2000

2500

3000

3500

4000

1965

1967

1969

1971

1973

1975

1977

1979

1981

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

North America S. & Cent. America Europe & Eurasia Middle East Africa Asia Pacific

When will the US institute a cap-and-trade system similar to the EU-ETS or CA system?

Source: Environmental Business Journal 2012, 2012 and 2013 Snapshot Surveys; 2009 response: 13% said never; 2010: 25% said never.

8%

10%

13%

7%

7%

2%

3%

14%

37%

2%

5%

10%

11%

8%

4%

2%

27%

30%

2%

7%

21%

11%

7%

5%

23%

25%

0% 5% 10% 15% 20% 25% 30% 35% 40%

2012

2013

2014

2015

2016

2017

2018

After 2018

Never

2011 results 2012 results 2013 results

US Carbon Policy Forecast

When do you think the United States will institute a carbon cap-and-trade system similar to the EU-ETS system in Europe, or that being tested in California; and/or when do you think the U.S. will institute a carbon tax or fee-for-emissions based system to restrict GHG emissions?

7%

13%

32%

13%

9%

26%

3%

9%

26%

23%

22%

17%

0% 5% 10% 15% 20% 25% 30% 35%

2014-2016

2016-2018

2018-2020

2020-2024

After 2024

Never

C&T C tax

Coal: % of US Electricity Generation

Source: Environmental Business Journal 2014 Snapshot Survey; Coal: U.S. DOE's Energy Information Administration says coal was 51% of U.S. electricity generation in 2003, and was down to 37-38% in 2012 and 2013, largely on the growth of generation from renewables and natural gas. What percentage of U.S. electricity generation do you believe coal will represent in 2020-2050?

51%

38%

28%

23%

19%15%

0%

10%

20%

30%

40%

50%

60%

2003 2013 2020 2030 2040 2050

Coal: % of China Electricity Generation

Source: Environmental Business Journal 2014 Snapshot Survey; Coal: International Energy Agency says coal was 81% of China's electricity generation in 2007, and was down marginally to 78% in 2012. What percentage of Chinese electricity generation do you believe coal will represent in 2020-2050?

81%78%

68%

62%

55%

49%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

2007 2012 2020 2030 2040 2050

EBJ Executives: Climate Forecast

Source: EBJ 2014 Snapshot Survey; Global Warming: The UN Intergovernmental Panel on Climate Change says that average global temperatures are expected to increase by 2°C to 4°C from 2010 levels by 2100, although some scenarios are as little as 0.6°C and as high as 8°C. What global temperature increase do you predict by 2100? Mean is 2.6°C

7%

19%

11%

16%

26%

12%

5%

1%

1%

1%

0% 5% 10% 15% 20% 25% 30%

Decrease

0-1°C

1-2°C

2-3°C

3-4°C

4-5°C

5-6°C

6-7°C

7-8°C

8-9°C

Renewables: % of US Electricity Generation

Source: EBJ 2014 Snapshot Survey; U.S. DOE's Energy Information Administration says non-hydro renewable sources were 2.4% of U.S. electricity generation in 2006, and now over 5%, largely on the growth of generation from wind. What percentage of U.S. electricity generation do you believe non-hydro renewable sources will represent in 2020-2050? (RE includes wood & biomass: 2012 shares were 37% coal, 30% natural gas, 19% nuclear and 7% hydro; Other RE: Biomass 1.4%; Geothermal 0.4%; Solar 0.1%; Wind 3.5%)

2.4%

5%

8%

10%

14%

20%

27%

0%

5%

10%

15%

20%

25%

30%

2006 2012 2020 2030 2040 2050 2100

AEO 2014 Latest Electricity Projection for 2020

34

1990 2000 2010 2020p0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

1,5941,966 1,847

1,646

373

601 988 1,268571

754806 779

290

270

255 300

3

6

94267

SolarPV

Wind

Geo

Biomass

Hydro

Nuclear

N.Gas

Petro

Coal

Bill

ion

KW

hs

24

AEO 2010

Total 4,525

18

200

23

170

300

883

767

47

2093

Total4,400

Demand is down 3%; NGas takes 12-15pts of share from coal. Wind expands.Demand is down 3%; NGas takes 12-15pts of share from coal. Wind expands.

16%

Source: EIA AEO 2014

Client Sectors in 2013-15: Top Half

170%8%19%31%31%8%2%Transportation authorities

210%5%19%40%28%9%0%Other manufacturing

192%2%19%32%34%11%0%Property developers: commercial

na3%0%25%28%35%8%3%Education

133%3%31%19%25%17%3%Hospitality

110%3%26%31%26%15%0%Food & beverage

120%4%24%22%35%15%0%Port authorities

160%2%17%29%38%14%0%Solid waste utilities & companies

80%2%27%24%24%20%2%Water utilities

50%7%7%22%39%22%4%Power utilities

60%2%20%26%24%22%7%Oil & Gas Downstream (refineries)

90%0%20%22%28%24%6%Chemical

30%0%13%24%31%27%4%Renewable energy development

20%5%10%15%41%20%10%Healthcare

12%0%4%22%31%29%12%Oil & Gas Midstream (pipelines/terminals)

10%2%4%16%22%33%22%Oil & Gas Upstream (E&P)

2013 Rank

Big decline

Modest declineFlat

Slow growthGoodStrong

Very strong

170%8%19%31%31%8%2%Transportation authorities

210%5%19%40%28%9%0%Other manufacturing

192%2%19%32%34%11%0%Property developers: commercial

na3%0%25%28%35%8%3%Education

133%3%31%19%25%17%3%Hospitality

110%3%26%31%26%15%0%Food & beverage

120%4%24%22%35%15%0%Port authorities

160%2%17%29%38%14%0%Solid waste utilities & companies

80%2%27%24%24%20%2%Water utilities

50%7%7%22%39%22%4%Power utilities

60%2%20%26%24%22%7%Oil & Gas Downstream (refineries)

90%0%20%22%28%24%6%Chemical

30%0%13%24%31%27%4%Renewable energy development

20%5%10%15%41%20%10%Healthcare

12%0%4%22%31%29%12%Oil & Gas Midstream (pipelines/terminals)

10%2%4%16%22%33%22%Oil & Gas Upstream (E&P)

2013 Rank

Big decline

Modest declineFlat

Slow growthGoodStrong

Very strong


Client Sectors in 2013-15: Bottom Half


Very strong Strong Good

Slow growth Flat

Modest

decline

Big declin

e2013 Rank

Property developers: residential 0% 12% 30% 35% 16% 5% 2% 18

Consumer products 0% 8% 23% 44% 23% 3% 0% 20

Major retailers 0% 13% 13% 41% 26% 8% 0% 25

Electronics/computer manufacturing 0% 8% 19% 42% 25% 3% 3% 14

Transportation mfg (auto & aero) 0% 0% 48% 28% 20% 3% 3% 17

Banks & Law Firms 0% 7% 29% 33% 19% 10% 2% 22

Local government 0% 10% 14% 35% 29% 12% 0% 28

Mining 0% 7% 32% 25% 27% 5% 5% 7

Primary metals 0% 5% 20% 33% 35% 8% 0% 10

Metals fabricating/coating 0% 0% 28% 31% 36% 6% 0% 24

Petroleum retail/gas stations 5% 2% 16% 28% 30% 19% 0% 23

State government 0% 10% 10% 38% 25% 15% 2% 27

Pulp & paper 0% 3% 11% 42% 29% 16% 0% 31

Federal government: DOE 0% 0% 20% 33% 30% 13% 4% 30

Federal government: Other 0% 2% 24% 20% 33% 14% 6% 29

Federal government: EPA 2% 2% 13% 26% 35% 13% 9% 26

Federal government: DOD 0% 4% 20% 22% 29% 16% 8% 32

Service/Media Categories 2013-15: Top Half



Slow growth Flat

Decline

Big Declin

e2013 Rank

Energy efficiency/DR 0% 38% 40% 18% 3% 3% 0% 2

Water recycling/reuse 0% 36% 38% 15% 8% 3% 0% 4

Air quality 5% 26% 42% 21% 5% 2% 0% 3

Renewable energy development

2% 32% 24% 27% 15% 0% 0%1

Green building design/construct

3% 15% 51% 23% 8% 0% 0%5

Smart growth/"green" planning

5% 12% 50% 21% 12% 0% 0%6

Environmental info management

0% 23% 32% 30% 14% 2% 0%8

Natural resources/ecological restoration

0% 16% 45% 29% 11% 0% 0%7

Project management/Construction mgmt.

0% 19% 37% 33% 9% 2% 0%13

Wastewater treatment 2% 16% 26% 40% 14% 2% 0% 17

Permitting/compliance 2% 13% 35% 35% 13% 2% 0% 9

Design and project engineering

0% 12% 44% 33% 12% 0% 0%15

Climate change adaptation 0% 13% 36% 33% 18% 0% 0% na

Investigations/assessments/audits

0% 18% 32% 36% 5% 9% 0%14

Industrial hygiene & safety 5% 8% 35% 28% 20% 5% 0% 23

Service/Media Categories 2013-15: 2nd Half



Slow growt

h FlatDeclin

e

Big Declin

e

2013

Rank

Investigations/assessments/audits 0% 18% 32% 36% 5% 9% 0% 14

Industrial hygiene & safety 5% 8% 35% 28% 20% 5% 0% 23

Water purification/delivery 0% 11% 39% 39% 8% 3% 0% 10

Solid waste 0% 13% 36% 33% 13% 5% 0% 22

Sustainability/corporate responsibility 0% 12% 26% 47% 14% 2% 0% 16

Outsourced EHS functions 5% 5% 33% 28% 23% 5% 0% 12

Operations & maintenance 0% 13% 26% 39% 16% 5% 0% 24

Carbon/climate change consulting 0% 5% 40% 33% 23% 0% 0% 11

Monitoring & analytical work 0% 12% 24% 45% 12% 7% 0% 18

Private remediation & redevelopment 0% 14% 36% 14% 29% 5% 2% 20

Pollution prevention 0% 2% 32% 44% 17% 2% 2% 19

Ongoing generation of hazardous waste 0% 8% 24% 18% 45% 5% 0% 21

Government remediation/base closure/conversion 0% 7% 36% 21% 24% 2% 10% 25

Ranking of Growth Prospects by US Geographic Region: 2014-2015

Source: Environmental Business Journal 2014 Snapshot Survey; Question was: Rate regions in terms of prospects for sales growth in the next two years.


Slow growth Flat

Modest decline

Big decline

US: Gulf Coast/Texas 4% 33% 43% 15% 2% 2% 0%

US: Southeast 0% 16% 40% 33% 9% 2% 0%

US: Southern California 0% 19% 30% 35% 12% 5% 0%

US: Mid-Atlantic 0% 15% 43% 26% 13% 0% 2%

US: Northern California 0% 20% 22% 40% 13% 4% 0%

US: Rockies 0% 7% 52% 37% 4% 0% 0%

US: Pacific Northwest 0% 9% 39% 36% 14% 2% 0%

US: Midwest 0% 13% 24% 50% 9% 4% 0%

All United States 0% 8% 33% 46% 8% 4% 0%

US: New England 0% 7% 43% 26% 17% 7% 0%

US: Southwest/Desert 0% 5% 37% 37% 16% 2% 2%

Global Growth Prospects: 2014-2015

Source: Environmental Business Journal 2014 Snapshot Survey


Slow growt

h Flat

Modest

decline

Big declin

e2013 Rank

Canada 2% 22% 41% 22% 12% 0% 0% 1

China 3% 14% 57% 23% 3% 0% 0% 4

India 0% 18% 56% 18% 9% 0% 0% 9

Brazil 0% 23% 40% 23% 11% 3% 0% 2

South America 0% 19% 46% 19% 11% 5% 0% 3

Emerging World (BRIC) 0% 10% 39% 35% 16% 0% 0%

12

All USA 0% 10% 38% 41% 8% 3% 0% 11

Rest of Asia 0% 9% 43% 29% 20% 0% 0% 7

Developing World (rest) 3% 3% 37% 40% 13% 3% 0%

14

Mexico & C America 0% 6% 44% 33% 14% 3% 0% 8

Dev’d World (OECD) 0% 3% 29% 55% 13% 0% 0% 13

Middle East 0% 15% 27% 24% 24% 6% 3% 5

Africa 3% 0% 33% 33% 27% 3% 0% 10

Australia/NZ 0% 8% 28% 33% 25% 6% 0% 6

Eastern Europe 0% 6% 26% 35% 26% 6% 0% 15

Western Europe 0% 6% 17% 36% 39% 3% 0% 18

Japan 0% 3% 21% 42% 27% 6% 0% 17

Russia 0% 6% 13% 47% 22% 6% 6% 16

U.S. Environmental Co. C&E Revenue: 2012

82.9%

17.1%

United States

Non-US

Source: Environmental Business International Inc., Annual model of the C&E industry

U.S. Env’l C&E Revenue: 1994-2012

Source: Environmental Business International Inc., Annual model of the C&E industry

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

1994 1996 1998 2000 2002 2004 2006 2008 2010 2012

Int'l Revenue

Distribution of Environmental Consulting & Engineering Firms in 2012 ($mil)

Source: Environmental Business Journal's annual model of the U.S. environmental consulting & engineering industry based on annual surveys of C&E firms by EBJ, Ebj interviews, compiled revenue data derived from various sources including ENR, EFCG, ZweigWhite and public company data.

Size FirmsGross Env'l

C&E Revs Average

Net Env'l C&E Revs

% of Mkt

% of Gross

Big 6>1 bil 6 10,435 1,739 8,661 30% 31%

Large>100-999 mil 46 12,839 279 10,656 37% 38%

Mid 20-100 126 4,725 37.5 4,110 14% 14%

S 10-20 133 1,780 13.4 1,656 6% 5%

S 5-10 184 1,320 7.2 1,241 4% 4%

S 1-5 549 1,464 2.7 1,391 5% 4%

S <1 mil 2,217 1,076 0.5 1,044 4% 3%

Total 3,261 33,640 10.3 28,760 100% 100%

Share of $100 mil+ Environmental Consulting & Engineering Firms 1990-2012

Source: EBJ database of C&E firms and model of the C&E industry: Environmental revenues only

FirmsGross Revs C&E ind Avg Rev

$100m+ $mil $bil % of Mkt of 100m+

1990 23 4,190 12.5 30% 182

1995 32 7,694 15.5 44% 240

2000 27 9,626 17.4 49% 357

2005 38 13,896 22.4 55% 366

2009 44 18,157 26.0 65% 413

2010 45 19,438 26.6 64% 432

2011 45 20,307 27.6 64% 451

2012 52 23,274 28.8 69% 448

Top 20 of EBJ’s Top 700 Environmental Consulting & Engineering Firms 2012 ($mil)

CompanyGross

RevenuesEnv'l

Cont/HW Env'l C&E

1 CH2M Hill Inc. 7,042 1,635 2,465

2 AECOM Technology Corp 8,218 - 2,281

3 Tetra Tech Inc. 2,688 636 1,667

4 URS Corporation 11,034 1,901 1,624

5 Golder Associates Corp. 1,411 45 1,228

6 ARCADIS USA Inc. 1,521 60 1,171

7 Battelle Memorial Institute 5,273 - 949

8 ERM 905 - 905

9 MWH Global 1,542 293 785

10 SAIC (Leidos in 9/2013) 10,398 - 624

11 CDM Smith 1,217 386 464

12 HDR Inc. 1,749 223 415

13 Cardno Ltd. (Entrix, TBE, ERI, TEC, ATC) 653 35 405

14 Antea Group USA (Oranjewoud, former Delta) 2,274 - 387

15 WorleyParsons 7,720 120 386

16 ICF International 930 - 381

17 Black & Veatch Corp. 3,295 511 369

18 Jacobs Engineering Group 10,900 300 347

19 AMEC Environment & Infrastructure 6,836 174 331

20 Conestoga-Rovers & Associates 463 74 324

Shares of Environmental Consulting & Engineering Firms 1995-2012 ($mil)

Source: EBJ database of C&E firms: Second 4 are MWH, SAIC/Leidos, ERM, Battelle: Environmental C&E revenues only

1995 2000 2005 2010 2011 2012

CH2M Hill Inc. 704 1,383 1,880 2,200 2,399 2,465

AECOM Technology 30 355 778 1,768 2,230 2,281

Tetra Tech Inc. 109 466 930 1,414 1,406 1,667

URS Corporation 85 768 1,024 1,461 1,494 1,624

Golder Associates 80 133 363 798 925 1,228

ARCADIS USA Inc. 129 154 450 1,143 1,136 1,171

Total C&E 15,490 17,420 22,350 26,600 27,570 28,780

Big 6 1,137 3,259 5,425 8,784 9,590 10,435

Big 6 Share 7% 19% 24% 33% 35% 36%

Big 10 2,473 4,852 8,337 13,113 13,977 14,869

Big 10 Share 16% 28% 37% 49% 51% 52%

Volume XXVI: EBJ in 2013

EBJ Vol XXVI No 12: The U.S. Water Industry

EBJ Vol XXVI No 10 & 11: Environmental C&E Industry Review

EBJ Vol XXVI No 9: M&A 2013

EBJ Vol XXVI No 7/8: Environmental Industry Overview 2013

EBJ Vol XXVI No 5/6: Corp.Sustainability and Sustainability Consulting

EBJ Vol XXVI No 4: Remediation 2013

EBJ Vol XXVI No 3: Outlook 2013: EBJ Snapshot Survey 2013

EBJ Vol XXVI No 2: Future of Fracking: Unconventional Oil & Gas E&P

EBJ Vol XXVI No 1: Executive Q&As and 2012 EBJ Awards

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CCBJ: Volume VI in 2013

• 2014 Executive Review & 2013 CCBJ Awards (December 2013)• Markets in Combined Heat & Power (November 2013)• Climate Change Industry and the Mining Industry (October

2013)• Carbon Markets 2013 (August/Sept 2013)• GHG Mitigation in the Oil and Gas Industry (June/July 2013)• Finance and the Climate Change Industry (May 2013)• Transportation: Alternative Fuels & Vehicles (March/April 2013)• Conventional Power: 2013 Outlook for Fossil & Nuclear

(January/February 2013)

Climate Change Industry Leaders ($bil in CCI)

50Source: EBI Inc., San Diego, Calif.

CompanyGlobal CCI Revenues

1 Siemens AG 25920

2 GE 18460

3 Johnson Controls Inc. 12100

4 Toyota Motor Co. 11500

5 Vestas 7680

6 Alstom 7200

7 Honeywell International 6590

8 Schneider Electric 6530

9 ABB 5700

10 Mitsubishi Heavy Industries 5600

11 Enercon 5200

12 Sinovel 4920

March 12-14, 2014 - 12th AnniversaryHilton San Diego Bayfront

CLIMATE CHANGE BUSINESS JOURNAL®

• 2014 quarterly publication schedule plus Executive Review edition

• New lower price points for C&Es

• Same deep dive into the markets for climate change mitigation and adaptation

March 12-14, 2014 - 12th Anniversary Hilton San Diego Bayfront

• Launched in 2007

• Gained wide respect in consulting & engineering industry and climate policy community

• Chronicled growth of climate change markets despite decline in policy drivers in US

• In 2014, with climate risks more evident, climate policy drivers are growing again and focus on adaptation is increasing

CCBJ History

March 12-14, 2014 - 12th Anniversary Hilton San Diego Bayfront

CCBJ Value Proposition

• Strategic market intelligence (where are the opportunities for your firm?)

• Competitive analysis (who’s doing what and how they are positioned)

• Big picture: where are the markets for climate change mitigation and risk management/adaptation headed in the next two to 10 years?

Grant Ferrier

President, Environmental Business International, Inc.

Chairman, Environmental Industry Summit

Editor, Environmental Business Journal

Editor, Climate Change Business Journal

4452 Park Blvd. #306, San Diego CA 92116, 619-295-7685 ext.15

[email protected]; [email protected]

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