Research, Consulting and Publishing for the Environmental Industry

presents

EBI REPORT 2020

The U.S. Environmental Industry & Global Market A comprehensive report featuring market breakdowns, projected growth and leading firms in all 14 segments of the environmental industry, based on in-depth original research. 2007 Researched and Written by: Environmental Business International 4452 Park Boulevard, Suite 306 San Diego, CA 92116 USA (619) 295-7685 · Fax: (619) 295-5743 · www.ebiusa.com

Table of Contents

Report 2020 - Environmental Industry OverviewTable of Contents

© 2005 Environmental Business International Inc. San Diego, CA Page iii

Report 2020 - Environmental Industry Overview

Table of Contents

1. Environmental Industry Overview 1.1. Definition of the Environmental Industry ..................................................................................... 1-5 1.2. Environmental Industry Customers or Buyers ............................................................................. 1-8 1.3. Environmental Industry Segments ............................................................................................... 1-11 1.4. Historical Framework of the Environmental Industry .............................................................. 1-11 1.5. 2004-2005 Trends in the Environmental Industry ...................................................................... 1-19 1.6. Consulting & Engineering Business Executives' Comments in 2005....................................... 1-21

1.6.1. ET Environmental ...................................................................................................................... 1-21 1.6.2. Secor International Inc. .............................................................................................................. 1-23 1.6.3. AMEC Earth & Environmental ................................................................................................. 1-24 1.6.4. Delta Environmental Consultants.............................................................................................. 1-25

1.7. 2003 Trends in the Environmental Industry................................................................................ 1-26 1.8. 2002 Trends in the Environmental Industry................................................................................ 1-27 1.9. Segment Review .............................................................................................................................. 1-30

1.9.1. Environmental Service Segments ............................................................................................... 1-30 1.9.2. Environmental Testing and Analytical Services ........................................................................ 1-31 1.9.3. Solid Waste Management ........................................................................................................... 1-35 1.9.4. Hazardous Waste Management.................................................................................................. 1-39 1.9.5. Remediation and Industrial Services .......................................................................................... 1-44 1.9.6. Consulting and Engineering ...................................................................................................... 1-49 1.9.7. Environmental Equipment Segments......................................................................................... 1-53 1.9.8. Water & Wastewater Treatment Equipment and Chemicals ..................................................... 1-54 1.9.9. Environmental Instrumentation & Information Systems.......................................................... 1-57 1.9.10. Air Pollution Control Equipment............................................................................................... 1-63 1.9.11. Waste Management Equipment ................................................................................................. 1-67 1.9.12. Process and Pollution Prevention Technology ........................................................................... 1-69 1.9.13. Environmental Resource Segments ............................................................................................ 1-70 1.9.14. Water Utilities ............................................................................................................................ 1-71 1.9.15. Resource Recovery ...................................................................................................................... 1-73 1.9.16. Clean Energy Systems & Power................................................................................................. 1-77 1.9.17. Healthy Products, Healthy Planet (HP2) Market ...................................................................... 1-82

1.10. Exports and International Business .............................................................................................. 1-85 1.11. Employment..................................................................................................................................... 1-88 1.12. Conclusion........................................................................................................................................ 1-89 List of Exhibits Exhibit 1-1 Industry Segments and Numbers of Companies, 2004 ................................................... 1-6 Exhibit 1-2 The U.S. Environmental Industry Segments: Public vs. Private Sector

Revenues, 2004 (Revenues generated by competitors/entities) .................................... 1-7 Exhibit 1-3 U.S. Environmental Industry Segments: Public vs. Private Customer

Revenues, 2004 ...................................................................................................................... 1-8 Exhibit 1-4 U.S. Environmental Industry Revenues from Private Clients, 2004 (Industrial

vs. Commercial/Other)........................................................................................................ 1-9 Exhibit 1-5 U.S. Environmental Industry Revenues from Industry Clients ................................... 1-10

Table of Contents

Page iv Report 2020 - The U.S. Environmental Industry & Global Market

Exhibit 1-6 Environmental Industry Segments................................................................................... 1-11 Exhibit 1-7 Historical and Projected Size of U.S. Environmental Industry .................................... 1-12 Exhibit 1-8 Historical Growth of the U.S. Environmental Industry, 1988 - 2004 ........................... 1-13 Exhibit 1-9 The U.S. Environmental Industry 1990-2004, ($bil) ....................................................... 1-13 Exhibit 1-10 The U.S. Environmental Industry 1970-2010 .................................................................. 1-15 Exhibit 1-11 Projected Growth in the U.S. Environmental Industry (2004-2008) ............................ 1-17 Exhibit 1-12 Historical and Projected Growth in the Environmental Industry in Services,

Equipment and Resources, 1970-2010.............................................................................. 1-18 Exhibit 1-13 Historical and Projected Growth in the Environmental Industry in

Infrastructure & Non-Infrastructure Segments, 1970-2010........................................... 1-18 Exhibit 1-14 U.S. Environmental Industry: Revenues by Function, 2004 ......................................... 1-20 Exhibit 1-15 U.S. Environmental Industry: Revenues by Media, 2004.............................................. 1-21 Exhibit 1-16 The U.S. Environmental Industry as a Percent of GDP................................................. 1-27 Exhibit 1-17 Historical and Projected Growth in Environmental Testing & Analytical

Services................................................................................................................................. 1-32 Exhibit 1-18 Distribution of Companies and Revenues in Environmental Testing &

Analytical Services, 1993.................................................................................................... 1-32 Exhibit 1-19 Distribution of Companies and Revenues in Environmental Testing &

Analytical Services, 2003.................................................................................................... 1-33 Exhibit 1-20 Leading Companies in Environmental Testing & Analytical Services, 2001 ............. 1-33 Exhibit 1-21 Leading Companies in Environmental Testing & Analytical Services, 2004 ............. 1-34 Exhibit 1-22 Historical and Projected Growth in Solid Waste Management.................................... 1-36 Exhibit 1-23 Size of the Solid Waste Market by Industry Segment, 2004.......................................... 1-36 Exhibit 1-24 Distribution of Solid Waste Management Revenues, 2001 ........................................... 1-37 Exhibit 1-25 Leading Companies in Solid Waste Management, 2001 ............................................... 1-37 Exhibit 1-26 Leading Companies in Solid Waste Management, 2004 ............................................... 1-38 Exhibit 1-27 Hazardous Waste Management Market, 2000 - 2004 .................................................... 1-39 Exhibit 1-28 Historical and Projected Growth in Hazardous Waste Management ......................... 1-41 Exhibit 1-29 Distribution of Companies in Hazardous Waste Management, 1995 ......................... 1-42 Exhibit 1-30 Leading Companies in Hazardous Waste Management, 1995..................................... 1-42 Exhibit 1-31 Leading Companies in Hazardous Waste Management, 2001..................................... 1-43 Exhibit 1-32 Leading Companies in Hazardous Waste Management, 2003..................................... 1-43 Exhibit 1-33 Distribution of Revenues from Remediation and Industrial Services, 2001-

2003 ....................................................................................................................................... 1-44 Exhibit 1-34 Distribution of Remediation Companies, 2003............................................................... 1-45 Exhibit 1-35 Historical and Projected Growth in Remediation & Industrial Services .................... 1-46 Exhibit 1-36 Leading Companies in Remediation, 1999...................................................................... 1-47 Exhibit 1-37 Leading Companies in Remediation, 2003...................................................................... 1-47 Exhibit 1-38 Historical and Projected Growth in Environmental Consulting &

Engineering.......................................................................................................................... 1-49 Exhibit 1-39 Environmental Consulting and Engineering Revenues Annual Growth Rate,

1970 - 2010............................................................................................................................ 1-50 Exhibit 1-40 Environmental Consulting & Engineering Revenues by Media, 2001-2003............... 1-51 Exhibit 1-41 Distribution of Companies in Environmental Consulting & Engineering,

2003 ....................................................................................................................................... 1-51 Exhibit 1-42 Leading Companies in Environmental Consulting & Engineering, 2001-2003 ......... 1-52 Exhibit 1-43 Historical and Projected Growth in Water & Wastewater Treatment

Equipment and Chemicals ................................................................................................ 1-55 Exhibit 1-44 Water & Wastewater Treatment Equipment and Chemicals Industry, 2000-

2004 ....................................................................................................................................... 1-55 Exhibit 1-45 Water Equipment & Chemicals Company Revenues, 2004 .......................................... 1-56 Exhibit 1-46 Leading Companies in Water & Wastewater Treatment Equipment, 2004................ 1-57 Exhibit 1-47 U.S. Environmental Instrumentation Market by Product Type, 1998 - 2004.............. 1-58 Exhibit 1-48 Environmental Software & Information Service Companies, 2004 ............................. 1-58

2. Environmental Market Drivers and Barriers

© 2005 Environmental Business International Inc. San Diego, CA Page v

Exhibit 1-49 Top 30 Analytical and Life Science Instrument Companies, 2004............................... 1-59 Exhibit 1-50 Leading Companies in Environmental Instrumentation, 2000 .................................... 1-60 Exhibit 1-51 Historical and Projected Growth in Environmental Instrumentation......................... 1-62 Exhibit 1-52 Mobile Source vs. Stationary Source, 1999 - 2004 .......................................................... 1-63 Exhibit 1-53 Historical and Projected Growth in the APC Segment: Stationary Source

Equipment and Mobile ...................................................................................................... 1-64 Exhibit 1-54 Distribution of Companies in Air Pollution Control Equipment, 2004 ...................... 1-65 Exhibit 1-55 Leading Companies in Air Pollution Control Equipment, 2004 .................................. 1-66 Exhibit 1-56 Waste Management Equipment Market by Major Category, 2000-2004 .................... 1-67 Exhibit 1-57 Historical and Projected Growth in Waste Management Equipment......................... 1-68 Exhibit 1-58 Historical and Projected Growth in PPT ......................................................................... 1-70 Exhibit 1-59 Historical and Projected Growth in Water Utilities....................................................... 1-71 Exhibit 1-60 Sales of Recovered Materials in/from U.S., 1995-2004 ($bil) ....................................... 1-74 Exhibit 1-61 Sales of Recovered Materials in the U.S., 2004 ($bil ) .................................................... 1-74 Exhibit 1-62 Historical and Projected Growth in Resource Recovery ............................................... 1-76 Exhibit 1-63 Leading Companies in Resource Recovery, 2000........................................................... 1-77 Exhibit 1-64 Historical and Projected Growth in Clean Energy Systems & Power......................... 1-78 Exhibit 1-65 Commercial Markets for Clean Energy Systems & Power, 2000 ................................. 1-79 Exhibit 1-66 U.S. Sales of Clean Energy Systems & Power, 1995 - 2004 ........................................... 1-80 Exhibit 1-67 Leading Companies in Environmental Energy, 2000 .................................................... 1-81 Exhibit 1-68 The $440-Billion U.S. Healthy Products, Healthy Planet Market ................................ 1-83 Exhibit 1-69 Global Environmental Market by Region, 2000 - 2003 .................................................. 1-84 Exhibit 1-70 Global Environmental Market by Segment, 2000 - 2003 ............................................... 1-85 Exhibit 1-71 U.S. Environmental Trade Balance, 2003......................................................................... 1-85 Exhibit 1-72 U.S. Environmental Industry Exports Performance, 1997 - 2003................................. 1-86 Exhibit 1-73 Companies and Exporters in the U.S. Environmental Industry, 2004......................... 1-86 Exhibit 1-74 Employment in the U.S. Environmental Industry, 1995 - 2003 .................................... 1-87

2. Environmental Market Drivers and Barriers 2.1 Global Industry Evolution ............................................................................................................... 2-3 2.2 Economic Influences ......................................................................................................................... 2-5

2.2.1. Continued Recession..................................................................................................................... 2-5 2.2.2. Resource and Waste Disposal Prices ............................................................................................ 2-5 2.2.3. Cleanup of U.S. Government Facilities / Technology Transfer .................................................... 2-6 2.2.4. Defense Conversion ...................................................................................................................... 2-7 2.2.5. North American Free Trade Agreement (NAFTA)...................................................................... 2-7

2.3 The Emerging Circular Economy.................................................................................................... 2-8 2.4 United States Legislation and Regulations.................................................................................. 2-10

2.4.1. Overview of Environmental Regulations ................................................................................... 2-12 The Resource Conservation and Recovery Act (RCRA) ........................................................ 2-12 The Comprehensive Environmental Response, Compensation and Liability Act ............. 2-17 The Clean Air Act (CAA) ........................................................................................................... 2-21 The Federal Water Pollution Control Act (a.k.a. Clean Water Act)...................................... 2-27 Other Federal Environmental Regulation................................................................................ 2-31

2.4.2. Enforcement, Civil/Criminal Liability Issues & Land Transfer Regulations............................. 2-32 Liability a Major Driver .............................................................................................................. 2-32 Property Transfer Liability......................................................................................................... 2-33 Right-To-Know Laws.................................................................................................................. 2-33

Table of Contents

Page vi Report 2020 - The U.S. Environmental Industry & Global Market

List of Exhibits Exhibit 2-1 Global Phases of Environmental Industry Evolution ...................................................... 2-4 Exhibit 2-2 Environmental Industry and the Emergence of a Circular Economy ......................... 2-10 Exhibit 2-3 Summary of Penalties under Section 3008 of RCRA ..................................................... 2-15 Exhibit 2-4 Summary of Superfund Sections ...................................................................................... 2-19 Exhibit 2-5 Summary of Clean Air Act Amendment Sections.......................................................... 2-22 Exhibit 2-6 1992 Median Penalties........................................................................................................ 2-34

3. Environmental Buyers

1. Introduction .................................................................................................................. 1-4

2. Private Sector Buyers................................................................................................. 2-10 2.1. Current Growth and Forecast by Environmental Buyer Categories in 2007 .......................... 2-10 2.2. Historical Background on Industrial Buyers............................................................................... 2-14 2.3. Sources of Data ................................................................................................................................ 2-15

2.3.1. US Department of Commerce ..................................................................................................... 2-16 2.3.2. US Environmental Protection Agency ....................................................................................... 2-17 2.3.3. US Department of Energy .......................................................................................................... 2-17 2.3.4. Summary of Last Available Accurate US Government Data..................................................... 2-18

2.4. Industry Profiles – Contents .......................................................................................................... 2-20 2.4.1. Private Sector Environmental Protection Spending................................................................... 2-21

2.5. Manufacturing Industries .............................................................................................................. 2-22 2.5.1. Metals and Mining ..................................................................................................................... 2-33 2.5.2. Chemical Industry Environmental Spending............................................................................. 2-39 2.5.3. Petroleum Industry Environmental Spending ........................................................................... 2-58 2.5.4. Food Industry.............................................................................................................................. 2-68 2.5.5. Pulp & Paper Industry ............................................................................................................... 2-69 2.5.6. Electric Power ............................................................................................................................. 2-70 2.5.7. Semiconductors/Electronics ........................................................................................................ 2-77 2.5.8. Paints & Coatings....................................................................................................................... 2-80 2.5.9. Cement Production ..................................................................................................................... 2-82 2.5.10. Ports............................................................................................................................................ 2-84 2.5.11. Construction ............................................................................................................................... 2-87

3. Profiles of Industrial Buyers.................................................................................... 3-89 3.1. Characterization & Survey of Environmental Managers........................................................... 3-90

3.1.1. Managing the Data..................................................................................................................... 3-93 3.1.2. Thorough Screening.................................................................................................................... 3-95

3.2. Hewlett Packard .............................................................................................................................. 3-96 3.3. Xerox Corp. ...................................................................................................................................... 3-99 3.4. Baxter International....................................................................................................................... 3-102 3.5. Exelon Corp.................................................................................................................................... 3-104 3.6. General Motors .............................................................................................................................. 3-108 3.7. Raytheon......................................................................................................................................... 3-111 3.8. Polaroid........................................................................................................................................... 3-115 3.9. Corporate Responsibility & Sustainability ................................................................................ 3-119

3.9.1. Environmental/Social Stewardship........................................................................................... 3-119 3.9.2. G3 Guidelines ........................................................................................................................... 3-126

4. Public Sector Buyers 4-145

© 2005 Environmental Business International Inc. San Diego, CA Page vii

3.9.3. Environmental Strategy ........................................................................................................... 3-132 3.10. Strategic environmental management (SEM): A practice area? ............................................. 3-137

3.10.1. Pollution Prevention (P2)......................................................................................................... 3-138 3.10.2. Environmental Information Systems & System Integration.................................................... 3-138 3.10.3. Industrial Ecology..................................................................................................................... 3-138 3.10.4. Life Cycle Analysis (life cycle assessment) ............................................................................... 3-138 3.10.5. Design for Environment (DFE)................................................................................................ 3-139 3.10.6. Industrial Metabolism (IM)...................................................................................................... 3-139 3.10.7. Environmental Accounting & Full-cost accounting (FCA)..................................................... 3-139 3.10.8. ISO 14000................................................................................................................................. 3-140 3.10.9. Total Quality Management (TQM & TQEM) ........................................................................ 3-140 3.10.10. Relationship Between SEM Practice Lines............................................................................... 3-140 3.10.11. “Make” or “Buy” Decision by Prospective Clients.................................................................. 3-143

4. Public Sector Buyers................................................................................................ 4-145 4.1. Federal Government Markets...................................................................................................... 4-147

4.1.1. Federal Markets Review: 2007.................................................................................................. 4-147 4.1.2. Federal Markets Review: 2004.................................................................................................. 4-158 3.1.6. Superfund .................................................................................................................................. 4-178 4.1.3. Historical Perspective on Federal Markets: Agency Review .................................................... 4-188 4.1.4. US Environmental Protection Agency..................................................................................... 4-189 4.1.5. US Department of Defense ....................................................................................................... 4-189 4.1.6. US Department of Energy ........................................................................................................ 4-190 4.1.7. Waste Management .................................................................................................................. 4-191 4.1.8. Environmental Restoration Program ....................................................................................... 4-192 4.1.9. Other Programs ........................................................................................................................ 4-193 4.1.10. The Future of the DOE Environmental Management Program .............................................. 4-193 4.1.11. Business Opportunities ............................................................................................................ 4-194

List of Exhibits Exhibit 1-1 U.S. Environmental Industry Segments by Customer Type 2005.................................. 1-4 Exhibit 1-2 U.S. Environmental Industry Revenues from Private Clients 2005............................... 1-5 Exhibit 1-3 U.S. Environmental Spending by Industry Clients.......................................................... 1-6 Exhibit 1-4 U.S. Environmental Consulting & Engineering Revenue ($ millions) .......................... 1-6 Exhibit 1-5 U.S. Remediation Markets By Customer 1995-2006......................................................... 1-7 Exhibit 1-6 Total U.S. Stationary Source Air Pollution Control Market ($mil) ................................ 1-8 Exhibit 1-7 U.S. Environmental Testing Revenue ($mil)..................................................................... 1-9 Exhibit 1-8 Global Environmental Instruments Sales ($mil) 1995-2005 .......................................... 1-10 Exhibit 2-1 Client Sectors Rated by Survey Respondents in 2007.................................................... 2-11 Exhibit 2-2 Service Sectors Rated by Survey Respondents in 2007................................................. 2-14 Exhibit 2-3 Composition of Pollution Abatement and Control (PAC) Spending by Sector

1987-1991.............................................................................................................................. 2-15 Exhibit 2-4 Environmental Spending by U.S. Industries in 1993 ..................................................... 2-18 Exhibit 2-5 Breakdown of Environmental Capital Spending by U.S. Industries in 1993 by

Media.................................................................................................................................... 2-19 Exhibit 2-6 Breakdown of Environmental Operating Expenditures by U.S. Industries in

1993 by Media ..................................................................................................................... 2-19 Exhibit 2-7 Breakdown of Total Environmental Expenditures by U.S. Industries in 1993

by Media .............................................................................................................................. 2-20 Exhibit 2-8 Composition of 1991 Pollution Abatement and Control Spending............................. 2-22

Table of Contents

Page viii Report 2020 - The U.S. Environmental Industry & Global Market

Exhibit 2-9 Estimates of Composition of Business Plant & Equipment Operating and Capital Expenditures.......................................................................................................... 2-22

Exhibit 2-10 1991 Manufacturing Sector Pollution Abatement Expenditures.................................. 2-23 Exhibit 2-11 Industrial Pollution Abatement Expenditures and Toxic Chemical Releases

and Transfers ....................................................................................................................... 2-24 Exhibit 2-12 TRI Chemical Disposal and Other Releases, by Industry 2005 .................................... 2-28 Exhibit 2-13 Total 1991 Industrial Pollution Abatement Spending By Sector.................................. 2-29 Exhibit 2-14 TRI Mercury Air Releases by Industry, 2005 .................................................................. 2-29 Exhibit 2-15 Manufacturers’ 1991 Air Pollution Abatement Spending By Sector ........................... 2-30 Exhibit 2-16 Manufacturers’ 1991 Water Pollution Abatement Spending By Sector ...................... 2-30 Exhibit 2-17 Manufacturers’ 1991 Solid Waste Management Spending By Sector.......................... 2-31 Exhibit 2-18 Manufacturers’ 1991 Hazardous Waste Management Spending By Sector ............... 2-32 Exhibit 2-19 Manufacturing Industries With the Fastest Growing Pollution Abatement

Expenditures........................................................................................................................ 2-33 Exhibit 2-20 2005 RCRA Hazardous Waste Generation...................................................................... 2-34 Exhibit 2-21 Breakdown of Chemical Industry Spending in 1993 ..................................................... 2-40 Exhibit 2-22 TRI Chemical Disposal and Other Releases, Top 20 Facilities 2005 ............................ 2-44 Exhibit 2-23 Chemical Industry Historical Pollution Abatement Expenditures by Media ............ 2-45 Exhibit 2-24 Distribution of Chemical Industry 1991 Pollution Abatement Expenditures

by Media .............................................................................................................................. 2-46 Exhibit 2-25 Year-to-Year Growth in Chemical Industry Environmental Spending....................... 2-47 Exhibit 2-26 Percentage of Air & Water Pollution Abatement Capital Expenditures for

Changes in Processes.......................................................................................................... 2-49 Exhibit 2-27 TRI Dioxin Air and Water Releases by Industry, 2005.................................................. 2-49 Exhibit 2-28 TRI Air and Water Releases of Carcinogins, by Industry 2005 .................................... 2-50 Exhibit 2-29 Chemical Manufacturers’ Largest Environmental Expenditures (% of Firms

Identifying Each Category as Their Largest Environmental Expense) ....................... 2-55 Exhibit 2-30 Chemical Manufacturers’ Capital Spending Plans for Environmental

Protection Projects .............................................................................................................. 2-56 Exhibit 2-31 Breakdown of the Petroleum Industry ............................................................................ 2-58 Exhibit 2-32 Decline of TRI Volume and Facilities 1988-2005 ............................................................ 2-60 Exhibit 2-33 Petroleum Industry Historical Pollution Abatement Expenditures by Media .......... 2-62 Exhibit 2-34 Distribution of Petroleum Industry 1991 Pollution Abatement Expenditures

by Media .............................................................................................................................. 2-62 Exhibit 2-35 Year-to-Year Growth in Petroleum Industry Environmental Spending..................... 2-64 Exhibit 2-36 Petroleum Companies’ Largest Environmental Expenditures (% of Firms

Identifying Each Category as Their Largest Environmental Expense) ....................... 2-67 Exhibit 2-37 Breakdown of the Food Industry...................................................................................... 2-69 Exhibit 2-38 Breakdown of the Paper & Allied Products Industry.................................................... 2-70 Exhibit 2-39 Power Industry Environmental Expenditures 2007, By Fuel Type ............................. 2-71 Exhibit 3-1 Polaroid Corporation Environmental Performance Indicators .................................. 3-119 Exhibit 4-1 Environmental Industry Segments by Customer Type ............................................... 4-146 Exhibit 4-2 DOD Environmental Budgets 2004-2007....................................................................... 4-150 Exhibit 4-3 DOE Environmental Budgets 2004-2007 ....................................................................... 4-155 Exhibit 4-4 EPA Environmental Budgets 2004-2008 ........................................................................ 4-157 Exhibit 4-5 DOI Environmental Budgets 2004-2007......................................................................... 4-157 Exhibit 4-6 Forcasted Growth by Government Client Type 2006.......................................................... 4-162 Exhibit 4-7 WERC Contract Winners .................................................................................................... 4-167 Exhibit 4-8 GSA Environmental Service Schedules .............................................................................. 4-177 Exhibit 4-9 Superfund by the Numbers .................................................................................................. 4-187 Exhibit 4-10 Historical and Projected Growth in Superfund-Related Market, 1988 – 2010 .................... 4-188 Exhibit 4-11 FY 1992 Defense Environmental Restoration Program (DERP) Expenditures

by Service ........................................................................................................................... 4-190 Exhibit 4-12 DOE Environmental Management Spending Estimates ($ Billions) ........................ 4-191

4. Water Utilities

© 2005 Environmental Business International Inc. San Diego, CA Page ix

Exhibit 4-13 DOE Environmental Management Funding Flow....................................................... 4-194 Exhibit 4-14 Potential Advantages of Innovative Treatment Technologies ................................... 4-195 Exhibit 4-15 Civilian Federal Agencies................................................................................................ 4-196

RESOURCES

4. Water Utilities 4.1. Introduction: The Ownership or Utility "Layer" of the Water Industry.................................... 4-5

4.1.1. Industry Structure........................................................................................................................ 4-5 4.1.2. Important Utility Discontinuities ................................................................................................ 4-6

Lack of Understanding of Full Scope of Water Benefits .......................................................... 4-7 Over Focus on Potable Water....................................................................................................... 4-7 Subsidies – Rates Not Reflecting True Costs ............................................................................. 4-8 Water Resources are Undervalued by the End Users .............................................................. 4-8 No "Marketing" of Water by Utilities.......................................................................................... 4-8

4.1.3. Resolving Discontinuities as Water Business Strategy................................................................ 4-9 4.2. Water Utilities Overview ............................................................................................................... 4-10

4.2.1. Five Broad Sub-Elements............................................................................................................ 4-13 4.2.2. Users Becoming Providers.......................................................................................................... 4-13 4.2.3. Increasingly Price Driven........................................................................................................... 4-14 4.2.4. Service/Product Foundation ....................................................................................................... 4-15

4.3. Water Utilities Market Overview.................................................................................................. 4-16 4.4. Water Utilities’ Market Segments ................................................................................................. 4-18

4.4.1. Water Markets by End User ....................................................................................................... 4-19 4.4.2. Water Markets by Revenue Type................................................................................................ 4-20

4.5. Geographic Distribution of Water Utilities’ Markets................................................................. 4-21 4.6. General Market Trends and Growth Areas for Water Utilities ................................................ 4-23

4.6.1. User Fee Growth......................................................................................................................... 4-23 4.6.2. On-Site Recycling/Reuse ............................................................................................................ 4-24 4.6.3. Privatization vs. Leveraging the Private Sector ......................................................................... 4-24

4.7. Leading Water Utility Companies ................................................................................................ 4-25 4.7.1. Changing Strategy of Private, Investor-Owned Water Utilities................................................ 4-25 4.7.2. Intrinsic Price and Investor Perception...................................................................................... 4-27

4.8. Water Recycling in the US ............................................................................................................. 4-27 4.9. U.S. and Mexican Border Issues and Opportunities .................................................................. 4-36

4.9.1. NAD Bank Border Environment Infrastructure Fund .............................................................. 4-37 List of Exhibits Exhibit 4-1 Water Commerce Map......................................................................................................... 4-6 Exhibit 4-2 The Circular Flow of Water Resources ............................................................................ 4-11 Exhibit 4-3 The Flow of Revenues in the Emerging Water industry............................................... 4-12 Exhibit 4-4 Rate of Increase in Water and Wastewater Charges vs Inflation................................. 4-14 Exhibit 4-5 Community Water Systems in the United States ........................................................... 4-16 Exhibit 4-6 Total Water Withdrawal By Users and Approximate Numbers of Users .................. 4-18 Exhibit 4-7 Water Utilities’ Revenues by User Group....................................................................... 4-19 Exhibit 4-8 Total Water Utility Revenues By End-User .................................................................... 4-20 Exhibit 4-9 Water Utilities’ Revenues .................................................................................................. 4-20 Exhibit 4-10 Elements of Other Water and Non-Water Related Revenues ...................................... 4-21 Exhibit 4-11 U.S. Water Utility Revenues by Revenue Type .............................................................. 4-21

Table of Contents

Page x Report 2020 - The U.S. Environmental Industry & Global Market

Exhibit 4-12 Public & Industrial Water Consumption by State.......................................................... 4-22 Exhibit 4-13 Top Ten States by Number of Facilities in AWWA Water Industry Database .......... 4-22 Exhibit 4-14 Major Publicly-Traded Water Utilities, 2000 .................................................................. 4-26 Exhibit 4-15 Major Publicly-Traded Water Utilities, 2004 .................................................................. 4-27 Exhibit 4-16 Projected Water Reuse in the US ...................................................................................... 4-30 Exhibit 4-17 Public Supply vs. Recycled Wastewater in the US......................................................... 4-31

5. Clean Energy Systems & Power 5.1. Definition and Scope......................................................................................................................... 5-3 5.2. Market Overview .............................................................................................................................. 5-4

5.2.1. 2001 Market Update ..................................................................................................................... 5-5 5.3. Growth in Renewable Energy in the United States .................................................................... 5-10

5.3.1. Market Drivers/Barriers ............................................................................................................. 5-10 5.3.2. Market Size and Structure.......................................................................................................... 5-13

Wide Opportunities Abroad ...................................................................................................... 5-15 Reductions in Costs ..................................................................................................................... 5-15 Utilities Are Critical to Renewables’ Success........................................................................... 5-16

5.4. Future Growth ................................................................................................................................. 5-17 Market Driver of the Future: The Clean Development Mechanism..................................... 5-19

5.5. Types of Clean Energy.................................................................................................................... 5-21 5.5.1. Geothermal Energy ..................................................................................................................... 5-21

Overview....................................................................................................................................... 5-21 Market Size and Structure .......................................................................................................... 5-22

5.5.2. Wind Power ................................................................................................................................ 5-22 Overview....................................................................................................................................... 5-22 Resources ...................................................................................................................................... 5-22 Revenues ....................................................................................................................................... 5-23 1999 Wind Power Market Update ............................................................................................. 5-24 2002 Update: Wind Power Starts to Fulfill Potential .............................................................. 5-28

5.5.3. Solar Energy ............................................................................................................................... 5-35 Overview....................................................................................................................................... 5-35 1999 Solar Market Update .......................................................................................................... 5-36 PV Company Rankings and Marketshare in 1999 .................................................................. 5-37 Technology Advances (Photovoltaics)...................................................................................... 5-38 Utility Photovoltaic Group (UPVG) .......................................................................................... 5-39 PV for Utility Scale Applications (PVUSA).............................................................................. 5-39 Solar Thermal Electricity ............................................................................................................ 5-40 Solar Experts Promise Continued Growth............................................................................... 5-40

5.5.4. Fuel Cells..................................................................................................................................... 5-45 Market Overview & Company Profiles .................................................................................... 5-45 Fuel Cell Market Size .................................................................................................................. 5-53

5.5.5. Demand Side Management (DSM)............................................................................................ 5-54 Overview....................................................................................................................................... 5-55 Market Growth............................................................................................................................. 5-56 Market Size and Structure .......................................................................................................... 5-56 Leading DSM Providers.............................................................................................................. 5-57

5.6. Nuclear in the Climate Change Era: One Man’s Opinion ......................................................... 5-57 List of Exhibits

6. Resource Recovery

© 2005 Environmental Business International Inc. San Diego, CA Page xi

Exhibit 5-1 2000 Fuel Sources for U.S. Electricity Generation ............................................................ 5-3 Exhibit 5-2 U.S. Sales of Renewable Energy Systems & Power, 1990 - 2004 .................................... 5-5 Exhibit 5-3 Effect of Key Market Drivers............................................................................................. 5-13 Exhibit 5-4 Commercial Markets for Clean Energy Systems & Power, 2000 ................................. 5-14 Exhibit 5-5 U.S. Sales of Renewable Energy Systems & Power, 1990 - 2004 .................................. 5-15 Exhibit 5-6 Comparative Costs of Generating Electricity ................................................................. 5-16 Exhibit 5-7 Leading Companies in Environmental Energy, 1999 .................................................... 5-17 Exhibit 5-8 Historical and Projected Growth in Clean Energy Systems & Power......................... 5-18 Exhibit 5-9 U.S. Wind Power – Capacity by End of 2001 (MW)....................................................... 5-23 Exhibit 5-10 Cost of Wind-Generated Energy in Levelized Cents/kWh.......................................... 5-31 Exhibit 5-11 Top Wind Energy Markets (by installed capacity, in MW) .......................................... 5-33 Exhibit 5-12 World PV Cell/Module Production, 1988-2000 (Megawatts) ...................................... 5-41

6. Resource Recovery 6.1. Resource Recovery Market .............................................................................................................. 6-3

6.1.1. 2004 Review.................................................................................................................................. 6-4 6.1.2. 2002 Review................................................................................................................................ 6-13

6.2. Paper Recycling ............................................................................................................................... 6-18 6.3. Plastics Recycling ............................................................................................................................ 6-20 6.4. Aluminum Recycling...................................................................................................................... 6-23 6.5. Steel Recycling ................................................................................................................................. 6-26 6.6. Glass Recycling................................................................................................................................ 6-28 6.7. Tires................................................................................................................................................... 6-28 6.8. Construction & Demolition Recycling ......................................................................................... 6-29 List of Exhibits Exhibit 6-1 Sales of Recovered Materials in/from the U.S., 1995-2004 ($bil) ................................... 6-4 Exhibit 6-2 Sales of Recovered Materials in the U.S., 2004 ($bil ) ...................................................... 6-4 Exhibit 6-3 Waste Paper - Exports and Domestic, 1994-2004 ........................................................... 6-19 Exhibit 6-4 Plastic - Exports and Domestic, 1994-2004 ...................................................................... 6-21 Exhibit 6-5 Aluminum Cans- Exports and Domestic, 1994 - 2004 ................................................... 6-24 Exhibit 6-6 Aluminum Scrap - Exports and Domestic, 1994-2004 ................................................... 6-25 Exhibit 6-7 Steel/Ferrous Scrap - Domestic and Exports 1994 - 2004 ............................................. 6-27 Exhibit 6-8 Leading Companies in Recycling ..................................................................................... 6-30

SERVICES

7. Consulting & Engineering

7. CONSULTING & ENGINEERING...................................................................................................12 7.1 EXECUTIVE SUMMARY............................................................................................................................12

7.1.1 Strategic Context of the C&E Market in 2007 ............................................................................12

Table of Contents

Page xii Report 2020 - The U.S. Environmental Industry & Global Market

7.1.1.1 Factors Converge For Record Growth in the C&E Market................................................................ 13 7.1.1.2 Factors Impacting Growth in the C&E Market 2007-2009................................................................ 14 7.1.1.3 Enviromental Industry Cycles............................................................................................................ 15 7.1.1.4 Positioned for New Drivers................................................................................................................ 16

7.1.2 2006-2007: Year in Review ........................................................................................................ 18 7.1.3 2004 - 2005: Year in Review ...................................................................................................... 26

7.1.3.1 C&E Executives Give Their Take on 2005........................................................................................ 31 7.1.4 2003 - 2004: Year in Review ...................................................................................................... 35 7.1.5 2002 - 2003: Year in Review ...................................................................................................... 43 7.1.6 2001 Year in Review................................................................................................................... 51

7.1.6.1 Paul Zofnass Reflects on the Financial Roller-Coaster...................................................................... 53 7.1.6.2 21st Century Trends: Back to Private Ownership............................................................................... 56

7.1.7 Historical Review from 1970-2005............................................................................................. 58 7.1.7.1 Central Business, Old & New Market Drivers................................................................................... 60 7.1.7.2 Dynamic Markets Require Dynamic Strategies ................................................................................. 65

7.2 THE U.S. ENVIRONMENTAL C&E MARKET............................................................................................ 67 7.2.1 Environmental C&E Markets by Client Type ............................................................................. 67

7.2.1.1 The Overall C&E Market................................................................................................................... 67 7.2.2 BY ECONOMIC SECTOR AND FIRM TYPE ............................................................................ 70

7.2.2.1 The Public Sector............................................................................................................................... 71 7.2.2.2 The Private Sector.............................................................................................................................. 72 7.2.2.3 Intra-Industry Clients......................................................................................................................... 73

7.2.3 Environmental C&E Markets by Service Type ........................................................................... 75 7.2.4 Environmental C&E Markets by Environmental Media............................................................. 79 7.2.5 Geographic Distribution of U.S. Environmental C&E Market .................................................. 83 7.2.6 Projections for Growth in Environmental C&E Markets ........................................................... 89

7.2.6.1 Public Sector Markets ........................................................................................................................ 91 7.2.6.2 Private Sector Markets....................................................................................................................... 93 7.2.6.3 Environmental Media Markets........................................................................................................... 96 7.2.6.4 Environmental Service Markets......................................................................................................... 98

7.2.7 Trends in Media and Service Markets ...................................................................................... 100 7.2.7.1 Growth of Environmental C&E Markets ......................................................................................... 103 7.2.7.2 Generator Trends and Spending Data .............................................................................................. 105 7.2.7.3 Historical Spending Trends.............................................................................................................. 106 7.2.7.4 Buying Habits Develop Strong Business Bias ................................................................................. 110

7.2.8 EH&S Function For Industrial Buyers .................................................................................... 111 7.2.8.1 Hewlett Packard............................................................................................................................... 112 7.2.8.2 Xerox Corp. ..................................................................................................................................... 115 7.2.8.3 Baxter International ......................................................................................................................... 117 7.2.8.4 Exelon Corp. .................................................................................................................................... 119 7.2.8.5 General Motors ................................................................................................................................ 123 7.2.8.6 Polaroid Corp................................................................................................................................... 126 7.2.8.7 National Grid ................................................................................................................................... 129 7.2.8.8 Raytheon Corp. ................................................................................................................................ 132 7.2.8.9 P&G................................................................................................................................................. 138 7.2.8.10 DuPont ............................................................................................................................................. 140

7.3 ENVIRONMENTAL C&E MANAGEMENT ANALYSIS .............................................................................. 143 7.3.1 Market Pressures Challenge Environmental CEOs on Leadership ......................................... 143

7.3.1.1 Challenges Ahead for Environmental Consulting Firms: ZweigWhite Outlook.............................. 150 7.3.2 Management Priorities ............................................................................................................. 157

7.3.2.1 Management Priorities in C&E Firms.............................................................................................. 158 7.3.3 Financial Management of C&E Firms ..................................................................................... 161

7.3.3.1 Profitability Benchmarks ................................................................................................................. 161 7.3.3.2 Overhead and Costs ......................................................................................................................... 164

7.3.4 Business Planning Practices .................................................................................................... 165 7.3.4.1 Tactical Planning ............................................................................................................................. 165 7.3.4.2 Strategic Planning ............................................................................................................................ 166 7.3.4.3 Risk Management and Contract Vehicles ........................................................................................ 167

7.3.5 Human Resources..................................................................................................................... 174 7.3.5.1 Recruitment and Retention (Winter 2007) ....................................................................................... 174 7.3.5.2 Q&A with Executive Recruiter Graziano (Summer 2003) .............................................................. 181

7. Consulting & Engineering

© 2005 Environmental Business International Inc. San Diego, CA Page xiii

7.3.5.3 Recruiting Sources ........................................................................................................................... 182 7.3.5.4 Personnel.......................................................................................................................................... 183 7.3.5.5 Retention Strategies ......................................................................................................................... 183 7.3.5.6 Turnover .......................................................................................................................................... 183

7.3.6 Sales, Marketing, and Business Development...........................................................................184 7.3.6.1 In Business Development, It’s The Seller/Doer Model and Client Retention for C&E Firms (Winter 2003-2004) 184 7.3.6.2 Executives Weigh In on Business Development Practices (Winter 2004) ....................................... 191 7.3.6.3 Q&A with Doug Hall: Effective Client and Employee Retention Are the Hallmarks of Profitable Firms 194 7.3.6.4 Operating Expenditures for Marketing ............................................................................................ 199 7.3.6.5 Changes in Marketing Practices....................................................................................................... 200 7.3.6.6 Marketing/Sales Methods and Effectiveness ................................................................................... 201 7.3.6.7 Marketing Structure ......................................................................................................................... 202 7.3.6.8 Marketing Strategy .......................................................................................................................... 202 7.3.6.9 Market Research Tactics.................................................................................................................. 203

7.3.7 Operations and Service Development .......................................................................................203 7.3.8 Strategic Planning.....................................................................................................................203

7.3.8.1 New Business Model for Small Professional-Services Firms .......................................................... 208 7.4 CONSOLIDATION IN THE C&E INDUSTRY ..............................................................................................219

7.4.1 Consolidation Overview ............................................................................................................219 7.4.1.1 Summary of 2006 M&A Activity .................................................................................................... 224 7.4.1.2 Big Merger & Acquisition Deals In 2005 ........................................................................................ 230 7.4.1.3 Summary of 2004 M&A Activity .................................................................................................... 238 7.4.1.4 M&A Perspective with EFCG ......................................................................................................... 248 7.4.1.5 Lessons Learned from C&E Consolidation Plays of the Past .......................................................... 250 7.4.1.6 Management Buyouts Highlighted 2001 Activity............................................................................ 257 7.4.1.7 Summary of 1999 M&A Activity .................................................................................................... 262 7.4.1.8 C&E M&A Statistics in the 90s ....................................................................................................... 264

7.4.2 Analysis of Competition.............................................................................................................268 7.4.2.1 The Top Firms by Environmental Media......................................................................................... 279 7.4.2.2 The Top International Firms ............................................................................................................ 286

7.5 NICHE MARKETS...................................................................................................................................289 7.5.1 Sustainability Consulting & Engineering..................................................................................289

7.5.1.1 Strategic Environmental Management & Sustainability Remains an Elusive Objective for Firms . 295 7.5.1.2 Through Supply-Chain Management, Sustainability Leaders Wield the Big Stick on Vendors ...... 304 7.5.1.3 Sustainable Development: Is it a Market Driver? ............................................................................ 308 7.5.1.4 ENVIRON’S Joe Highland: Time for Environmental Consultants to Walk the Walk..................... 314

7.5.2 Air-Quality Consulting & Engineering .....................................................................................315 7.5.2.1 Rules Drive Power AQ Projects For B&V....................................................................................... 320 7.5.2.2 Air Market Rides on Power Industry’s Thirst For Coal; Lags On New Regs .................................. 323 7.5.2.3 China’s Air Market .......................................................................................................................... 326 7.5.2.4 Addressing Air-Quality Issues At Ports Spurs a Growing Air Consulting Practice at ENVIRON .. 329 7.5.2.5 Air Consulting & Engineering: Four Leaders Discuss Turn of the Century Trends ........................ 331

7.5.3 Emissions Trading.....................................................................................................................342 7.5.3.1 Markets for Emissions Credits Showing Strength On All Fronts..................................................... 345 7.5.3.2 Pieces in Place for Credits Trading in a “Carbon-Constrained” Future ........................................... 350 7.5.3.3 E+Co Sees Carbon Trading as a Tool for Clean Energy to Developing Nations............................. 357

7.5.4 Toxic Mold & Indoor Air Quality..............................................................................................358 7.5.4.1 Growth Continues in Indoor Air-Quality, But “Toxic” Mold Segment Stumbles............................ 358

7.5.5 Contract Operations..................................................................................................................361 7.5.5.1 Leader USFilter Maintains Confidence In Contract Operations Market.......................................... 365

7.5.6 Disaster Response: Hurricanes Katrina And Rita ....................................................................369 7.5.7 Remediation & Brownfields Market ..........................................................................................374

7.5.7.1 Assessment Standards: EPA’s All Appropriate Inquires (AAI) Rule .............................................. 377 7.5.7.2 EPA Cleanup Programs Emphasize Land as an Asset ..................................................................... 381 7.5.7.3 Is The Superfund Program Winding Down? On The Contrary, Says EPA...................................... 385 7.5.7.4 Renova Partners Aligns Stakeholder Interests in Brownfields Work............................................... 386 7.5.7.5 For TRC, Back-End Remediation Work is Becoming Connected to Front-End Development Tasks 388 7.5.7.6 LFR Finds That Remediation and Redevelopment Consulting Now Entails Facilitating the Deal.. 391 7.5.7.7 Former Landbank Principals Set Up Brownfield Partners ............................................................... 394

Table of Contents

Page xiv Report 2020 - The U.S. Environmental Industry & Global Market

7.5.8 Rad Waste Management ........................................................................................................... 397 7.5.8.1 Safety And Ecology Opens Offices To Pursue Growing Opportunities In Rad-Waste Management 397

7.5.9 Ecological Restoration ............................................................................................................. 400 7.5.10 Homeland Security ................................................................................................................... 402

7.5.10.1 Homeland Security Funds Begin Finding Their Way to Engineering, Instrumentation and Alternative Energy 402 7.5.10.2 Homeland Security Market Takes Shape, But Private Sector Lags Federal Facilities..................... 408

7.5.11 Outsourcing .............................................................................................................................. 414 7.5.11.1 Firms Push Trend to Outsourcing .................................................................................................... 414 7.5.11.2 C&E Firms Target Design/Build/Operate Projects as Outsourcing Entry Point .............................. 418 7.5.11.3 Hi-Tech Opportunities in Outsourcing............................................................................................. 423

7.5.12 Community Planning & Smart Growth .................................................................................... 424 7.5.13 Natural Resource Management ................................................................................................ 431

7.5.13.1 Stream Rehabilitation is a Rising Star in Watershed Management and Restoration........................ 440 7.5.13.2 Wetlands Engineering Moves Beyond Mitigation; Designers Stay With Projects .......................... 444 7.5.13.3 In Florida’s Everglades, It’s All About “Getting the Water Right” ................................................. 449 7.5.13.4 Jones & Stokes Sees Revived Federal Interest in Habitat Restoration............................................. 454 7.5.13.5 Larger-Scale Projects in Natural Resource Management Attract Parametrix .................................. 457 7.5.13.6 Fisheries Management Work Mixes Planning with Restoration ...................................................... 459 7.5.13.7 Cultural Resources........................................................................................................................... 464

7.5.14 Environmental Information Systems......................................................................................... 467 7.5.14.1 Instruments & Information Technology Coming of Age ................................................................. 467 7.5.14.2 Enviance On Forefront Of Reliance On “Software As A Service” Model To Deliver Ehs Management Solutions.......................................................................................................................................... 473 7.5.14.3 By-Products Reuse........................................................................................................................... 476 7.5.14.4 Pollution Prevention ........................................................................................................................ 479

7.6 GREEN BUILDINGS ............................................................................................................................... 483 7.6.1 Environmental, Health & Safety Services (EH&S)................................................................... 485

7.6.1.1 Keys to EH&S Service Firm Success in The 21st Century.............................................................. 485 7.7 PROFILES OF SELECTED LARGE FIRMS ................................................................................................. 489

7.7.1 ERM.......................................................................................................................................... 489 7.7.2 Tetra Tech................................................................................................................................. 497 7.7.3 Foster Wheeler (acq’d in 2003)................................................................................................ 499 7.7.4 ICF International...................................................................................................................... 504 7.7.5 Weston Solutions ...................................................................................................................... 505 7.7.6 Black & Veatch......................................................................................................................... 507

7.7.6.1 Black & Veatch (Summer 2002)...................................................................................................... 512 7.7.7 AECOM .................................................................................................................................... 515

7.7.7.1 ENSR (Winter 2003)........................................................................................................................ 519 7.7.8 AECOM (January/February 2000) .......................................................................................... 524 7.7.9 ARCADIS.................................................................................................................................. 527 7.7.10 Kleinfelder ................................................................................................................................ 530 7.7.11 Battelle Memorial Institute....................................................................................................... 532 7.7.12 ARCADIS.................................................................................................................................. 535 7.7.13 Waste Management .................................................................................................................. 538 7.7.14 AMEC Earth & Environmental ................................................................................................ 539 7.7.15 The Shaw Group Inc................................................................................................................. 542 7.7.16 SAIC.......................................................................................................................................... 546 7.7.17 HNTB........................................................................................................................................ 549

7.7.17.1 HNTB (Winter 2007)....................................................................................................................... 549 7.7.17.2 HNTB Profile in Spring 2002 .......................................................................................................... 552

7.7.18 U.S. Laboratories Inc. .............................................................................................................. 555 7.8 MACTEC INC. ....................................................................................................................................... 558

7.8.1 HDR Inc.................................................................................................................................... 561 7.8.2 CH2M Hill: Solid Waste Practice 2002 ................................................................................... 566 7.8.3 Camp Dresser & McKee........................................................................................................... 570 7.8.4 The Washington Group ............................................................................................................ 572 7.8.5 Malcolm Pirnie......................................................................................................................... 576 7.8.6 Golder Associates Inc............................................................................................................... 578

7. Consulting & Engineering

© 2005 Environmental Business International Inc. San Diego, CA Page xv

7.9 PROFILES OF MID-SIZED C&E FIRMS....................................................................................................580 7.9.1 Kennedy/Jenks Consultants .......................................................................................................580 7.9.2 Fuss & O’Neill ..........................................................................................................................583 7.9.3 Jones & Stokes...........................................................................................................................585 7.9.4 The Cadmus Group, Inc. ...........................................................................................................586 7.9.5 Gannett-Fleming .......................................................................................................................588 7.9.6 Hart Crowser.............................................................................................................................591 7.9.7 RETEC Inc.................................................................................................................................593 7.9.8 David Evans Associates.............................................................................................................597 7.9.9 RMT Inc.....................................................................................................................................601 7.9.10 Langan Engineering and Environmental Services ....................................................................604 7.9.11 Normandeau Associates ............................................................................................................606 7.9.12 Short Elliott Hendrickson Inc....................................................................................................609 7.9.13 Dynamac Corp ..........................................................................................................................611 7.9.14 Roux Associates.........................................................................................................................614 7.9.15 O’Brien & Gere.........................................................................................................................616 7.9.16 S&ME ........................................................................................................................................619 7.9.17 Barr Engineering Co. ................................................................................................................622 7.9.18 Boyle Engineering Corp............................................................................................................625 7.9.19 Delta Environmental Consultants Inc. ......................................................................................628 7.9.20 Geosyntec Consultants ..............................................................................................................631 7.9.21 Cape Environmental Management Inc......................................................................................634 7.9.22 Clayton Group Services.............................................................................................................636 7.9.23 SCS Engineers ...........................................................................................................................638 7.9.24 Versar Inc. .................................................................................................................................640 7.9.25 Komex........................................................................................................................................645 7.9.26 R. W. Beck Inc. ..........................................................................................................................648 7.9.27 Los Alamos Technical Associates Inc........................................................................................651 7.9.28 Stantec .......................................................................................................................................654 7.9.29 ET Environmental Corp. ...........................................................................................................657 7.9.30 Carollo Engineers .....................................................................................................................660 7.9.31 PBS&J .......................................................................................................................................663 7.9.32 Geomatrix Consultants..............................................................................................................665 7.9.33 ENVIRON..................................................................................................................................668 7.9.34 V3 Companies ...........................................................................................................................671 7.9.35 ENTACT ....................................................................................................................................674 7.9.36 Compass Environmental............................................................................................................674 7.9.37 ERRG.........................................................................................................................................675 7.9.38 WRS Infrastructure & Environment ..........................................................................................675 7.9.39 TechLaw ....................................................................................................................................676

7.10 PROFILES OF SMALL C&E FIRMS ..........................................................................................................676 7.10.1 EBI Consulting Inc. ...................................................................................................................676 7.10.2 EnviroTrac Ltd. .........................................................................................................................679 7.10.3 W&M Environmental ................................................................................................................681 7.10.4 Hard Hat Services .....................................................................................................................684 7.10.5 Sovereign Consulting ................................................................................................................684 7.10.6 Marstel-Day LLC ......................................................................................................................685 7.10.7 ES&H Inc. .................................................................................................................................685 7.10.8 The Phylmar Group...................................................................................................................686 7.10.9 Sullivan International Group ....................................................................................................686 7.10.10 Parametrix.................................................................................................................................686 7.10.11 KCI Technologies ......................................................................................................................689 7.10.12 Trinity Consultants ....................................................................................................................692 7.10.13 Benchmark Environmental Consultants ....................................................................................694 7.10.14 The SI Group .............................................................................................................................696 7.10.15 Treadwell & Rollo .....................................................................................................................699 7.10.16 Millennium Science & Engineering Inc.....................................................................................702

Table of Contents

Page xvi Report 2020 - The U.S. Environmental Industry & Global Market

7.10.17 Winzler & Kelly Consulting Engineers..................................................................................... 705 7.10.18 Holguin, Fahan & Associates Inc............................................................................................. 707 7.10.19 H2M Group .............................................................................................................................. 710 7.10.20 Lincoln Environmental Inc. ...................................................................................................... 712 7.10.21 Schoor de Palma ...................................................................................................................... 714 7.10.22 Stewart Environmental Consultants Inc. .................................................................................. 717 7.10.23 INTERA Inc. ............................................................................................................................. 719 7.10.24 EORM Inc................................................................................................................................. 722 7.10.25 Environmental Consulting & Technology ................................................................................ 725 7.10.26 Smith Environmental Management .......................................................................................... 726 7.10.27 Environmental Science Associates ........................................................................................... 729 7.10.28 Dahl & Associates .................................................................................................................... 731 7.10.29 Erler & Kalinowski................................................................................................................... 734 7.10.30 Kemron ..................................................................................................................................... 736 7.10.31 Lexicon ..................................................................................................................................... 738 7.10.32 Applied Earth Sciences............................................................................................................. 740

7.11 CONCLUSIONS ...................................................................................................................................... 743

List of Exhibits Exhibit 1 U.S. GDP Growth vs. Environmental C&E Market Growth, 1988-2006............................................ 13 Exhibit 2 U.S. GDP Growth vs. Environmental Industry Growth, 1970-2005 ................................................... 16 Exhibit 3 U.S. Environmental Industry Revenues by Function, 2005................................................................. 17 Exhibit 4 Geographic Regions Rated by Survey Respondents in 2007............................................................... 25 Exhibit 5 The US C&E Industry: Average Profitability vs. Industry Growth, 1995 - 2005 ............................... 38 Exhibit 6 Average Profitability of U.S. C&E Market, 1996 - 2006 .................................................................... 38 Exhibit 7 Revenue Distribution of U.S. C&E Market, 2006 ............................................................................... 42 Exhibit 8 Revenue Distribution of U.S. C&E Market, 2004 ............................................................................... 42 Exhibit 9 Consolidation of U.S. C&E Market, 1990-2006 ................................................................................. 42 Exhibit 10 U.S. C&E Companies’ International Revenues, 1996 - 2003............................................................ 43 Exhibit 11 Environmental Consulting and Engineering Revenues Annual Growth Rate, 1987 - 2005.............. 45 Exhibit 12 U.S. C&E Industry: Median Profit Margin 1994 - 2004 ($Million).................................................. 54 Exhibit 13 Environmental Consulting and Engineering Revenues Annual Growth Rate, 1970-2008................ 59 Exhibit 14 Environmental Consulting & Engineering Market by Client, 2005 .................................................. 60 Exhibit 15 Environmental Consulting & Engineering Market by Client, 2003 .................................................. 61 Exhibit 16 Environmental Consulting & Engineering Market by Client, 1999 .................................................. 61 Exhibit 17 Environmental Consulting & Engineering Market by Media, 2006 .................................................. 62 Exhibit 18 Environmental Consulting & Engineering Market by Media, 2003 .................................................. 62 Exhibit 19 Environmental Consulting & Engineering Market by Media, 1999 .................................................. 63 Exhibit 20 Environmental Consulting & Engineering Market by Service, 2006 ................................................ 63 Exhibit 21 Environmental Consulting & Engineering Market by Service, 2003 ................................................ 64 Exhibit 22 Environmental Consulting & Engineering Market by Service, 1999 ................................................ 64 Exhibit 23 Environmental Consulting and Engineering Client Categories ......................................................... 67 Exhibit 24 U.S. C&E Market by Customer, 2006 ............................................................................................... 68 Exhibit 25 U.S. C&E Market by Customer 1996 - 2006 ($Million) ................................................................... 69 Exhibit 26 The C&E Market by Firm Type 2000-2005 ...................................................................................... 69 Exhibit 27 The C&E Market by Firm Type 1997 - 2000 .................................................................................... 69 Exhibit 28 Public and Private Sector Shares of the C&E Market, 1995 ............................................................. 70 Exhibit 29 Public Sector Markets for C&E Services, 2000, 2003 and 2006....................................................... 71 Exhibit 30 Private Sector Markets for C&E Services, 1999, 2003 and 2006...................................................... 72 Exhibit 31 C&E Firms’ Private Sector Revenue by Client................................................................................ 73 Exhibit 32 Environmental Industry Segment Interactions................................................................................... 75 Exhibit 33 U.S. C&E Market by Service Type, 1996 - 2006 .............................................................................. 78 Exhibit 34 U.S. C&E Market by Media Type, 1994-2005.................................................................................. 81 Exhibit 35 Total Market for C&E Services (By Media), 1999, 2003 and 2006.................................................. 83 Exhibit 36 Markets for Environmental C&E Services by EPA Region .............................................................. 85

7. Consulting & Engineering

© 2005 Environmental Business International Inc. San Diego, CA Page xvii

Exhibit 37 State Markets for Environmental C&E Services, 1997, 1999, 2001 and 2004 ..................................85 Exhibit 38 State Markets for Environmental C&E Services by Media in 2001 ...................................................87 Exhibit 39 State Markets for Environmental C&E Services by Media in 2005 ...................................................88 Exhibit 40 Geographic Performance: 2003-2007................................................................................................89 Exhibit 41 Growth of Environmental C&E Markets, 1997 - 2008 ......................................................................90 Exhibit 42 Growth of Environmental C&E Markets by Media, 1998 - 2008 ......................................................96 Exhibit 43 Growth of Environmental C&E Markets by Service, 1999 - 2008.....................................................98 Exhibit 44 Annual Growth in C&E Service Categories, 2007-2008..................................................................100 Exhibit 45 2003 U.S. C&E Market Matrix by Media by Service ($mil)............................................................100 Exhibit 46 Growth of Environmental C&E Markets, 1997-2008 ......................................................................104 Exhibit 47 U.S. Environmental Industry Segments by Customer Type, 2005 ...................................................105 Exhibit 48 U.S. Environmental Industry Revenue from Manufacturing Industry by Media .............................106 Exhibit 49 Manufacturing Industries' Pollution Control Expenditures and Emissions Volumes, 1988 - 1992 .107 Exhibit 50 Manufacturing Industry Top Spenders on Pollution Abatement, 1992 ............................................108 Exhibit 51 Manufacturing Industry Top Spenders on Pollution Abatement, 1993 ............................................108 Exhibit 52 Manufacturing Industry Top Spenders on Pollution Abatement, 1994 ............................................109 Exhibit 53 CEO Priorities and Concerns, 2006................................................................................................156 Exhibit 54 C&E Firm Management Priorities ....................................................................................................159 Exhibit 55 Environmental C&E Revenue Growth by Firm Type ......................................................................161 Exhibit 56 Selected Financial Statistics 1995-2001 ...........................................................................................162 Exhibit 57 Selected Financial Statistics 1993 and 1996.....................................................................................163 Exhibit 58 Selected Financial Statistics 1993 and 1996.....................................................................................164 Exhibit 59 Overhead Costs as a Percentage of Net Revenues............................................................................164 Exhibit 60 Implementation of Cost Cutting Measures .......................................................................................165 Exhibit 61 Average C&E Industry Pay Raises...................................................................................................165 Exhibit 62 Short Term Tactical Planning Priorities ...........................................................................................166 Exhibit 63 Midterm Strategic Planning Priorities ..............................................................................................167 Exhibit 64 Contract & Pricing Apporaches........................................................................................................168 Exhibit 65 A/E Principals' Base Salary (medians) .............................................................................................175 Exhibit 66 Effectiveness of Recruitment Sources (Rated 1-10, 10 being highest) ............................................182 Exhibit 67 Difficulty of Recruiting Staff (Rated 1-10, 10 being highest) ..........................................................183 Exhibit 68 Historical Personnel Analysis: Compensation 2000-2006 .............................................................183 Exhibit 69 Effectiveness of Staff Retention Strategy (Rated 1-10, 10 being highest) .......................................183 Exhibit 70 Average Yearly Employee Turnover Rates ......................................................................................184 Exhibit 71 Employee Turnover Analysis ...........................................................................................................184 Exhibit 72 Environmental Consulting Firms' Total Marketing Spending as a Percentage of Net Service

Revenue, 1998-2003 (Medians)......................................................................................................185 Exhibit 73 Marketing Expenditure as Percentage of Operating Budget.............................................................200 Exhibit 74 Marketing Practices ..........................................................................................................................200 Exhibit 75 Marketing Methods and Effectiveness .............................................................................................201 Exhibit 76 Marketing Structure ..........................................................................................................................202 Exhibit 77 Marketing Strategy ...........................................................................................................................202 Exhibit 78 C&E Firms’ Market Research Tactics..............................................................................................203 Exhibit 79 C&E Operations & Service Development ........................................................................................203 Exhibit 80 13 Steps to Effective Strategic Planning...........................................................................................206 Exhibit 81 Consolidation of U.S. C&E Market, 1990-2006 ..............................................................................220 Exhibit 82 Revenue Distribution of U.S. C&E Market, 2005............................................................................220 Exhibit 83 Revenue Distribution of U.S. C&E Market, 2004............................................................................220 Exhibit 84 Revenue Distribution of U.S. C&E Market, 2003............................................................................221 Exhibit 85 Revenue Distribution of U.S. C&E Market, 2002............................................................................221 Exhibit 86 Revenue Distribution of U.S. C&E Market, 2001............................................................................221 Exhibit 87 Revenue Distribution of U.S. C&E Market, 1999............................................................................222 Exhibit 88 Revenue Distribution of the U.S. C&E Market, 1998 ......................................................................222 Exhibit 89 M&A Activity in the Environmental C&E Engineering Industry: 1997 - 2007.............................223 Exhibit 90 Prominent M&A Activity in the C&E Sector in 2006....................................................................229 Exhibit 91 Success Rates in M&As for C&E Firms ..........................................................................................243 Exhibit 92 M&A in Environmental C&E: Selected Deals, 2004 .......................................................................244

Table of Contents

Page xviii Report 2020 - The U.S. Environmental Industry & Global Market

Exhibit 93 Significant M&A Transactions in 1999 (Revenues of Acquiree in $Million)................................. 263 Exhibit 94 C&E Industry M&A Activity .......................................................................................................... 264 Exhibit 95 Top Environmental Consulting & Engineering Firms, 2005........................................................... 269 Exhibit 96 Top Environmental Consulting & Engineering Firms, 2001 – 2004............................................... 271 Exhibit 97 Top Environmental Consulting & Engineering Firms in 1999: Major Mergers & Acquisitions and

Revenue Growth 95-99.................................................................................................................. 276 Exhibit 98 The Top Hazardous Waste Consulting Firms, 2006........................................................................ 280 Exhibit 99 The Top Remediation Consulting Firms, 2005................................................................................ 281 Exhibit 100 The Top Water/Wastewater Consulting Firms, 2005 .................................................................... 282 Exhibit 101 The Top Air Consulting Firms, 2005............................................................................................. 283 Exhibit 102 The Top Solid Waste Consulting Firms, 2005............................................................................... 284 Exhibit 103 The Top Natural Resources Consulting Firms, 2005..................................................................... 285 Exhibit 104 The Top International C&E Firms, 2005....................................................................................... 286 Exhibit 105 The Top International C&E Firms, 1999....................................................................................... 287 Exhibit 106 The U.S. C&E Market ................................................................................................................... 296 Exhibit 107 Sustainability Leaders by Market Sector ....................................................................................... 299 Exhibit 108 EBJ’s Top SEM Companies .......................................................................................................... 303 Exhibit 109 U.S. Water/Wastewater Contract Operations: Top Companies 2001-2004................................... 369 Exhibit 110 Homeland Security: Framework of Opportunities......................................................................... 410 Exhibit 111 Top Natural Resources Management Firms................................................................................... 435 Exhibit 112 Core National Ecosystem Extent (Lower 48 States)...................................................................... 440 Exhibit 113 Fish Facts ....................................................................................................................................... 461

8. Environmental Testing & Analytical Services 8.1 Executive Summary .......................................................................................................................... 8-5 8.2 Overview of Environmental Lab Services ................................................................................... 8-11 8.3 Development of the Environmental Testing Industry ............................................................... 8-12 8.4 Annual Trend Review..................................................................................................................... 8-14

8.4.1 2005 Trend Review ..................................................................................................................... 8-14 8.4.2 2004 Trend Review ..................................................................................................................... 8-24 8.4.3 2003 Trend Review ..................................................................................................................... 8-29 8.4.4 2002 Trend Review ..................................................................................................................... 8-38

8.5 Market Segmentation for Environmental Testing & Analytical Services................................ 8-49 8.5.1 Market Segmentation by Client Type ......................................................................................... 8-50 8.5.2 Market Segmentation by Sample Media ..................................................................................... 8-66 8.5.3 Market Segmentation By Service................................................................................................ 8-69 8.5.4 Geographic Distribution of US Environmental Testing & Analytical Services Markets ......... 8-70 8.5.5 Projected Growth in Markets for Environmental Testing and Analytical Services................... 8-72

8.6 Competitive Structure of the Industry ......................................................................................... 8-74 8.6.1 An Industry in Evolution: Capacity Adjustments and Trends in 1998 .................................... 8-77 8.6.2 The 1990s: Large Environmental Lab Companies in Transition................................................ 8-79 8.6.3 Large Environmental Lab Companies 2003 - 2004: Survey and Analysis................................. 8-93 8.6.4 Large Company Profiles............................................................................................................ 8-100 8.6.5 Medium-Sized Environmental Testing Companies.................................................................. 8-123 8.6.6 Small Environmental Testing Companies ................................................................................ 8-136 8.6.7 New Entrants in the 90s........................................................................................................... 8-139

8.7 Technological Developments....................................................................................................... 8-140 8.7.1 Categorization of Technical Change ......................................................................................... 8-141 8.7.2 Field Sampling and Collection .................................................................................................. 8-141 8.7.3 Sample Shipment and Handling............................................................................................... 8-142 8.7.4 Sample Preparation................................................................................................................... 8-143 8.7.5 Data Management and Analysis .............................................................................................. 8-143 8.7.6 Immunoassay Techniques ......................................................................................................... 8-144 8.7.7 Long-Term Impact of New Technology .................................................................................... 8-145

8. Environmental Testing & Analytical Services

© 2005 Environmental Business International Inc. San Diego, CA Page xix

8.7.8 Company Profiles in Technology .............................................................................................. 8-147 8.8 Mergers and Acquisitions ............................................................................................................ 8-149

8.8.1 Merger and Acquisition Trends in The Analytical Laboratory Business: Early History .... 8-149 8.8.2 What's Driving Consolidation? ............................................................................................... 8-150 8.8.3 Valuation Trends ...................................................................................................................... 8-150 8.8.4 Deal Structures......................................................................................................................... 8-152 8.8.5 M&A Activities: 2003 - 2004 Update ...................................................................................... 8-153 8.8.6 What Does the Future Hold?.................................................................................................... 8-155

8.9 Operations Management and Success Factors .......................................................................... 8-156 8.9.1 Analytical Reporting and Business System Automation ......................................................... 8-156 8.9.2 Professional Business Management Systems ........................................................................... 8-156 8.9.3 Exploitation of New Instrumentation Technologies ................................................................. 8-157 8.9.4 Creative and Flexible Labor Force Management ...................................................................... 8-158 8.9.5 Professional Marketing and Sales............................................................................................. 8-160

8.10 Summary of Management Challenges ....................................................................................... 8-166 List of Exhibits Exhibit 8-1 Historical Growth in the US Analytical Services Market, 1988 - 2004 .......................... 8-5 Exhibit 8-2 Historical and Projected Growth in the US Analytical Services Market, 1970 -

2010 ......................................................................................................................................... 8-6 Exhibit 8-3 The Importance of Various Competitive Factors in Environmental Testing ............... 8-9 Exhibit 8-4 Historical and Projected Growth in Environmental Testing & Analytical

Services, 1970 - 2010 ........................................................................................................... 8-13 Exhibit 8-5 Top 20 Environmental Testing & Analytical Services Firms, 2004.............................. 8-16 Exhibit 8-6 Top Environmental Testing & Analytical Services Firms by Productivity,

2004 ....................................................................................................................................... 8-20 Exhibit 8-7 Distribution of Companies and Revenues in Environmental Testing &

Analytical Services, 2003.................................................................................................... 8-25 Exhibit 8-8 Top 20 Environmental Testing & Analytical Services Firms, 2003.............................. 8-27 Exhibit 8-9 Top 20 Environmental Testing & Analytical Services Firms, 2002.............................. 8-33 Exhibit 8-10 Other Major Environmental Testing & Analytical Services Firms, 2002 .................... 8-34 Exhibit 8-11 Top Environmental Testing & Analytical Services Firms, 2001................................... 8-42 Exhibit 8-12 Distribution of Companies and Revenues in Environmental Testing &

Analytical Services, 2001.................................................................................................... 8-42 Exhibit 8-13 Market Breakdown by Client Type, 1997 ........................................................................ 8-51 Exhibit 8-14 Market Breakdown by Client Type, 2000 ........................................................................ 8-51 Exhibit 8-15 Market Breakdown by Client Type, 2004 ........................................................................ 8-52 Exhibit 8-16 Environmental Testing and Analytical Services Markets by Client Type,

1995-2004.............................................................................................................................. 8-53 Exhibit 8-17 Distribution Government-Related Revenues, 1997........................................................ 8-54 Exhibit 8-18 Distribution Government-Related Revenues, 2000........................................................ 8-54 Exhibit 8-19 Distribution Government-Related Revenues, 2004........................................................ 8-55 Exhibit 8-20 Distribution of Revenues from Environmental Services Companies, 1997................ 8-58 Exhibit 8-21 Distribution of Revenues from Environmental Services Companies, 2000................ 8-59 Exhibit 8-22 Distribution of Revenues from Environmental Services Companies, 2004................ 8-59 Exhibit 8-23 Distribution of Revenues from Industrial Markets, 1997.............................................. 8-62 Exhibit 8-24 Distribution of Revenues from Industrial Markets, 2000.............................................. 8-63 Exhibit 8-25 Distribution of Revenues from Industrial Markets, 2004.............................................. 8-63 Exhibit 8-26 Distribution of Revenues by Sample Media, 1997 ......................................................... 8-66 Exhibit 8-27 Distribution of Revenues by Sample Media, 2000 ......................................................... 8-67 Exhibit 8-28 Distribution of Revenues by Sample Media, 2004 ......................................................... 8-67 Exhibit 8-29 Estimated Number of Sites and Remediation Cost, 2004-2033 .................................... 8-68

Table of Contents

Page xx Report 2020 - The U.S. Environmental Industry & Global Market

Exhibit 8-30 Environmental Testing and Analytical Services Markets by Sample Media, 1995-2004.............................................................................................................................. 8-69

Exhibit 8-31 Distribution of Revenues by Service, 2003 ...................................................................... 8-70 Exhibit 8-32 Markets for Environmental Testing & Analytical Services by State............................ 8-72 Exhibit 8-33 Annual Growth of Environmental Testing Business, 2000-2010.................................. 8-73 Exhibit 8-34 Projected Annual Growth Rates of Environmental Testing Business by Client

Type and by Sample Type, 2004-2008.............................................................................. 8-74 Exhibit 8-35 Distribution of Companies and Revenues in Environmental Testing &

Analytical Services: 1993, 1996, 2003 and 2004 ($ million)............................................ 8-75 Exhibit 8-36 Distribution of Industry Revenues by Firm Size, 1996 and 2004 ................................. 8-76 Exhibit 8-37 Fate of The Top Environmental Lab Firms at Year-End, 1993...................................... 8-82 Exhibit 8-38 The Top U.S. Environmental Labs, 1995.......................................................................... 8-84 Exhibit 8-39 Typical Revenues Declines: 1992 vs. 1996 ....................................................................... 8-85 Exhibit 8-40 The Top U.S. Environmental Labs, 1996.......................................................................... 8-86 Exhibit 8-41 The Top U.S. Environmental Labs, 1997.......................................................................... 8-88 Exhibit 8-42 The Top U.S. Environmental Labs, 1998.......................................................................... 8-89 Exhibit 8-43 The Top U.S. Environmental Labs, 2000.......................................................................... 8-90 Exhibit 8-44 The Top U.S. Environmental Labs, 2001.......................................................................... 8-91 Exhibit 8-45 The Top U.S. Environmental Labs, 2002.......................................................................... 8-92 Exhibit 8-46 The Top U.S. Environmental Labs, 2003.......................................................................... 8-95 Exhibit 8-47 Productivity of the Top Labs, 2003 (Revenues per Employee)..................................... 8-96 Exhibit 8-48 The Top U.S. Environmental Labs, 2004.......................................................................... 8-99 Exhibit 8-49 Productivity of the Top Labs, 2004 (Revenues per Employee)................................... 8-100 Exhibit 8-50 STL Acquisitions, 1998-2001............................................................................................ 8-112 Exhibit 8-51 Selected Mid-Sized Environmental Lab Firms at Year-End 1995 .............................. 8-125 Exhibit 8-52 Relative Importance of Technological Changes to the Lab Business ........................ 8-145 Exhibit 8-53 Environmental Laboratories: Valuation Trends........................................................... 8-151 Exhibit 8-54 Selected Recent Key Lab Mergers and Acquisitions 1996-1998 ................................. 8-153 Exhibit 8-55 Significance of Labor Force Management by Lab Size ................................................ 8-158 Exhibit 8-56 What Steps are You Taking to Increase Flexibility and Control (Percentage of

All Responses) ................................................................................................................... 8-159 Exhibit 8-57 How Much Environmental Lab Firms Spend on Sales & Marketing ........................ 8-161 Exhibit 8-58 Percent of Gross Revenues Spent on Sales and Marketing at Environmental

Firms ................................................................................................................................... 8-162 Exhibit 8-59 Breakdown of Sales and Marketing Budgets at Labs .................................................. 8-162 Exhibit 8-60 Lab Marketers’ Assessments of Marketing Program Effectiveness........................... 8-163 Exhibit 8-61 Expected Growth in Sales and Marketing Budget ....................................................... 8-163 Exhibit 8-62 Size of Sales & Marketing Staff at Environmental Lab and Testing Firms............... 8-164 Exhibit 8-63 Sales Reporting Structure ................................................................................................ 8-164 Exhibit 8-64 Focus of Sales Force at Environmental Lab Firms........................................................ 8-165 Exhibit 8-65 Lab Firms’ Sales Compensation Programs (Percentage of All Responses) .............. 8-166 Exhibit 8-66 Key Elements of Success .................................................................................................. 8-167

9. Solid Waste Management 9.1. Recent Activities ................................................................................................................................ 9-3

9.1.1. Waste Generation and Disposal in 2001 .................................................................................... 9-10 9.2. Solid Waste Management Markets ............................................................................................... 9-12 9.2. Collection Markets .......................................................................................................................... 9-14 9.3. Processing Markets ......................................................................................................................... 9-16 9.4. Disposal Markets............................................................................................................................. 9-17

10. Remediation & Industrial Services

© 2005 Environmental Business International Inc. San Diego, CA Page xxi

9.5. Geographic Distribution of Solid Waste Management Markets............................................... 9-22 9.6. Other Solid Waste Management Segments ................................................................................. 9-28

9.6.1. Recycling..................................................................................................................................... 9-28 9.6.2. Landfill Gas................................................................................................................................. 9-30 9.6.3. Composting................................................................................................................................. 9-31

9.7. Competition in Solid Waste Management................................................................................... 9-32 9.7.1. Top Solid Waste Management Companies ................................................................................. 9-34 9.7.2. Leading Firms in Waste to Energy ............................................................................................. 9-36 9.7.3. Municipal Solid Waste Authorities ............................................................................................ 9-37

9.8. Strategies for Success ...................................................................................................................... 9-37 List of Exhibits Exhibit 9-1 Size of the Solid Waste Market by Business Type, 2004.................................................. 9-3 Exhibit 9-2 Size of the Solid Waste Market by Business Type, 2001.................................................. 9-4 Exhibit 9-3 Size of the Solid Waste Market by Industry Segment, 2004 ........................................... 9-5 Exhibit 9-4 Size of the Solid Waste Market by Industry Segment, 2001 ........................................... 9-6 Exhibit 9-5 Trends in Waste Generation & Disposal in the U.S., 2000 - 2001................................. 9-10 Exhibit 9-6 Number of Operating Waste Disposal Operations, 2001.............................................. 9-11 Exhibit 9-7 Volumes, Average Prices & Revenues from Landfilling MSW, 2001 & 2000............. 9-11 Exhibit 9-8 2000 to 2001 Materials Recovery Volumes...................................................................... 9-11 Exhibit 9-9 Disposition of Municipal Solid Waste 1989-1998........................................................... 9-11 Exhibit 9-10 Size of the Solid Waste Market by Industry Segment, 2004 ......................................... 9-12 Exhibit 9-11 Historical and Projected Growth in Solid Waste Management ................................... 9-13 Exhibit 9-12 Solid Waste Collection Markets, 2004.............................................................................. 9-15 Exhibit 9-13 Solid Waste Collection Markets, 2001.............................................................................. 9-15 Exhibit 9-14 Growth in the Number of U.S. Recycling Facilities and Programs ............................. 9-17 Exhibit 9-15 Number of Landfills by Region and Ownership, 2001.................................................. 9-18 Exhibit 9-16 Number of Landfills by Region and Ownership, 1991.................................................. 9-19 Exhibit 9-17 Average Tip Fees for MSW Charged by Landfills by Region and Ownership,

2001 (in $/Ton).................................................................................................................... 9-19 Exhibit 9-18 Average Tip Fees for MSW, 1991 (in $/Ton) .................................................................. 9-19 Exhibit 9-19 Number of Landfills in the United States (1989-96)....................................................... 9-20 Exhibit 9-20 Number of Incinerators in the United States (1989-96) ................................................. 9-21 Exhibit 9-21 Trends in Waste Generation & Disposal by State, 2000 - 2001 (in Millions of

tons) ...................................................................................................................................... 9-24 Exhibit 9-22 Number of Operating Waste Disposal Operations by State in 2001 ........................... 9-25 Exhibit 9-23 Volumes, Average Prices & Revenues from Landfilling MSW by State, 2001

& 2000................................................................................................................................... 9-26 Exhibit 9-24 Year-to-Year Materials Recovery Volumes by State (in Millions of Tons) ................. 9-27 Exhibit 9-25 Market Share in Solid Waste Management by Competitor Type, 1999 - 2004 ........... 9-33 Exhibit 9-26 Leading Companies in Solid Waste Management, 2004 ............................................... 9-34 Exhibit 9-27 Leading Companies in Solid Waste Management, 2001 ............................................... 9-35 Exhibit 9-28 Distribution of Revenues in U.S. Solid Waste Industry, 2001 ...................................... 9-36 Exhibit 9-29 Largest Waste-to-Energy Companies Ranked by Total Capacity................................ 9-37

10. Remediation & Industrial Services

10 Remediation & Industrial Services ..............................................................................9

Table of Contents

Page xxii Report 2020 - The U.S. Environmental Industry & Global Market

10.1 Introduction ...........................................................................................................................................9 10.1.1 Remediation/Industrial Services .....................................................................................................10

10.2 Industrial Services ...............................................................................................................................11 10.2.1 Competition in Industrial Services .................................................................................................13

10.3 Abatement Services.............................................................................................................................15 10.3.1 Asbestos Abatement ........................................................................................................................16 10.3.2 Lead Paint Abatement.....................................................................................................................18 10.3.3 Radon Abatement............................................................................................................................19 10.3.4 Toxic Mold ......................................................................................................................................19

10.4 Site Remediation Markets ..................................................................................................................22 10.4.1 Markets for Site Remediation Services ...........................................................................................23 10.4.2 Remediation Markets 1995-2006....................................................................................................24 10.4.3 Service Categories of the Remediation Market................................................................................27 10.4.4 Remediation Market by Competitor Type.......................................................................................28 10.4.5 Remediation Market By Project Size ..............................................................................................30 10.4.6 Market Growth in Site Remediation...............................................................................................31

Historical Context ............................................................................................................................31 Projected Growth .............................................................................................................................32

10.4.7 Market Category Reviews...............................................................................................................33 U.S. Remediation Market Update: 2007........................................................................................33 Federal Markets Review: 2007 .......................................................................................................37 Federal Markets Review: 2004 .......................................................................................................48 DOD & DOE Expand Small Business Contracting ............................................................................53 New Resource Management Planning at the Bureau of Land Management (BLM) ..........................58 GSA Schedule Contracts Serve as Vehicles for Land-Use Planning and Other Environmental Work ...................................................................................................................................................65 Superfund .........................................................................................................................................67 Superfund at 25: Success? Failure? Any Future? ...............................................................................68 RCRA-Related Remediation...........................................................................................................77 Privately Initiated/Non-Regulatory Remediation......................................................................78 Brownfield Market Review- 2007 Update ....................................................................................80 Redevelopment Challenges Facing BRAC Properties ................................................................86 Underwriting BRAC Transfer ........................................................................................................88 Brownfield Market Review - 2006 Update ...................................................................................90 Redevelopment Fuels Unexpected Growth In the Remediation Business..........................................90 Robert Colangelo: Brownfields Market Firing on All Cylinders ......................................................96 Evolution Brownfields Redevelopment Market .................................................................................99 “Portsfields” Initiative - Federal Port Revitalization Program .........................................................104 “Restoration Development” Author Cunningham Urges Standards For Integrated Development...109 United States Lags Canada, Other Nations In Adoption Of “INTEGRATED RESTORATION”...113 Traditional Development Funding Sources Turn Their Eyes towards Brownfields.........................117 Redevelopment Benefits from Progress in Estimating Damages .....................................................120 Brownfields Funding and Initiatives in 2004 & 2005 ......................................................................124 Underground Storage Tank Remediation ..................................................................................128 Leaking USTs and Other Hazards...............................................................................................130 State Superfund..............................................................................................................................134 Department of Defense .................................................................................................................134 BRAC V: New Property Transfer Authorities Expected To Streamline Cleanup And Redevelopment .................................................................................................................................136 BRAC 2005: A New Opportunity To Address The Issue Of Environmental Land Use Controls ...144 Department of Energy...................................................................................................................149 2002 Report: Consolidation Narrows Field of Contractors for DOE Cleanup .................................154 Nuclear Demolition & Decommissioning (D&D) .....................................................................157 Disposal Cost Changes for D&D......................................................................................................160

10 Remediation & Industrial Services 9

© 2005 Environmental Business International Inc. San Diego, CA Page xxiii

Manufactured Gas Plant (MGP) Sites.........................................................................................162 Other Federal Agencies.................................................................................................................164

10.5 Remediation Trend Analysis ...........................................................................................................165 10.5.1 2004 Review..................................................................................................................................165 10.5.2 2003 Review..................................................................................................................................168 10.5.3 2002 Review..................................................................................................................................175 10.5.4 Market Drivers .............................................................................................................................179 10.5.5 Pricing & Contracts......................................................................................................................180

Remediation Market Revenue Flow Chart.................................................................................181 10.5.6 Insurance Feature .........................................................................................................................181 10.5.7 Insurance Matures for Redevelopment .........................................................................................187 10.5.8 HR and Personnel Feature: Phase I Professionals ........................................................................188

10.6 Competitive Factors for Success......................................................................................................194 10.6.1 Key Buying Factors ......................................................................................................................194

Differing Buying Factors in Government vs. Commercial Markets.......................................195 10.6.2 Technology Applications...............................................................................................................196

Changing Technology Needs.......................................................................................................196 Development Of In Situ Technology ..........................................................................................198 Technology Applications..............................................................................................................199 Soil Remediation Methods ...........................................................................................................200 Groundwater Remediation Methods..........................................................................................201 Site Characterization Methods.....................................................................................................202 Technology Opportunities ...........................................................................................................202

10.6.3 Operating and Financial Benchmarks ..........................................................................................203 Summary of Profitability by Type of Project .............................................................................204

10.6.4 Competition in Site Remediation..................................................................................................206 Competitive Analysis....................................................................................................................206 Top Remediation Firms ................................................................................................................208 Top Remediation Firms in 1992...................................................................................................220 Top Remediation Companies by Market ...................................................................................221 US Department of Energy ................................................................................................................228 US Department of Defense...............................................................................................................228 Superfund (EPA & PRP) ..................................................................................................................229 State Programs..................................................................................................................................229 RCRA ...............................................................................................................................................230 Underground Storage Tanks (USTs) ................................................................................................230 Private Projects/Brownfields ............................................................................................................231

10.7 Profiles of Remediation Companies (From Environmental Business Journal Vo. XX No. 7/8, 2007)............................................................................................................................................235

10.7.1 ENSR............................................................................................................................................235 10.7.2 REGENESIS.................................................................................................................................238 10.7.3 TERRATHERM, Inc....................................................................................................................241 10.7.4 URS CORP...................................................................................................................................243 10.7.5 VERUTEK....................................................................................................................................246 10.7.6 LFR, Inc. .......................................................................................................................................249 10.7.7 BAY WEST, Inc. ..........................................................................................................................251

10.8 Profiles of Remediation Companies (From Environmental Business Journal Vo. XIX No. 3/4, 2006) ....................................................................................................................................254

10.8.1 TETRA TECH..............................................................................................................................254 10.8.2 O’NEILL.......................................................................................................................................257 10.8.3 TERRACON.................................................................................................................................260 10.8.4 PDG..............................................................................................................................................263 10.8.5 CREAMER ENVIRONMENTAL...............................................................................................266 10.8.6 ATWELL-HICKS .........................................................................................................................269 10.8.7 BROWNFIELD ASSOCIATES INC...........................................................................................271

Table of Contents

Page xxiv Report 2020 - The U.S. Environmental Industry & Global Market

10.8.8 TRIHYDRO..................................................................................................................................274 10.8.9 MASER CONSULTING .............................................................................................................277 10.8.10 TERRASURE ...............................................................................................................................280

10.9 Profiles of Remediation Companies (From Environmental Business Journal Vol. XVII No.1/2 and No.3/4, 2004)................................................................................................................282

10.9.1 ARCADIS.....................................................................................................................................282 10.9.2 Renova Partners............................................................................................................................285 10.9.3 TRC Companies Inc. .....................................................................................................................287 10.9.4 LFR Levine-Fricke.........................................................................................................................290 10.9.5 Brownfield Partners ......................................................................................................................293 10.9.6 Panther Technologies ....................................................................................................................296 10.9.7 AMEC Earth & Environmental ...................................................................................................299 10.9.8 Environmental Waste Management Associates ...........................................................................301 10.9.9 Parametrix ....................................................................................................................................304 10.9.10 SWCA Environmental Consultants .............................................................................................306 10.9.11 Shaw Environmental & Infrastructure ........................................................................................309 10.9.12 TolTest Inc. ...................................................................................................................................311 10.9.13 Sullivan Consulting......................................................................................................................314 10.9.14 FPM Remediations .......................................................................................................................318 10.9.15 Duratek Inc. ..................................................................................................................................320 10.9.16 S. M. Stoller ..................................................................................................................................323 10.9.17 Small Environmental Business Action Coalition .........................................................................326 10.9.18 American Council of Engineering Companies..............................................................................329

10.10 Profiles of Remediation Companies (From Environmental Business Journal Vol. XV No.9/10 2003) ....................................................................................................................................332

10.10.1 LVI Services ..................................................................................................................................332 10.10.2 Environmental Quality Management Inc. (EQM) ......................................................................335 10.10.3 SLR International Corp. ...............................................................................................................337 10.10.4 Sub-Surface Waste Management Inc. (SSWM)...........................................................................340 10.10.5 The Whitman Companies Inc. ......................................................................................................342 10.10.6 Weston Solutions Inc. ...................................................................................................................345 10.10.7 The Forrester Group......................................................................................................................347 10.10.8 Portage Environmental Inc...........................................................................................................350 10.10.9 TRC Companies Inc. .....................................................................................................................352 10.10.10 Pacific Northwest National Laboratory (PNNL)..........................................................................355

10.11 Profiles of Remediation Companies (From Environmental Business Journal Vol. XIII No.5/6 2001) ......................................................................................................................................358

10.11.1 Clean Earth ...................................................................................................................................358 10.11.2 ERM..............................................................................................................................................361 10.11.3 Wasatch Environmental ...............................................................................................................365 10.11.4 AMEC Earth and Environmental ................................................................................................367 10.11.5 Conestoga-Rovers Associates ........................................................................................................370 10.11.6 McLaren Hart/Jones......................................................................................................................372 10.11.7 O’Brien & Gere.............................................................................................................................375 10.11.8 Landbank.......................................................................................................................................378 10.11.9 Bitterroot Restoration Inc. ............................................................................................................381

10.12 Profiles of Remediation Companies (From Environmental Business Journal Vol. XII No.1/2 1999) ......................................................................................................................................383

10.12.1 ThermoRetec .................................................................................................................................383 10.12.2 Clayton Environmental Consultants............................................................................................387 10.12.3 Locus Technologies........................................................................................................................393 10.12.4 Lexicon Environmental Services...................................................................................................398 10.12.5 Ensafe ............................................................................................................................................401 10.12.6 Roy F. Weston...............................................................................................................................403 10.12.7 Handex Environmental.................................................................................................................405

© 2005 Environmental Business International Inc. San Diego, CA Page xxv

10.12.8 Applied Earth Sciences .................................................................................................................414 10.13 Appendix............................................................................................................................................417

10.13.1 Opinion Survey Results ...............................................................................................................419

Table of Exhibits Exhibit 10-1 U.S. Environmental Industry: Revenues by Media ($bil) 2005 ................................................10 Exhibit 10-2 Remediation/Industrial Services Revenues ($mil) 1999-2006 ..................................................11 Exhibit 10-3 Industrial Services Market, 1996-2006 ($billion) .....................................................................12 Exhibit 10-4 Top Industrial Services Firms, 1993..........................................................................................13 Exhibit 10-5 Top Industrial Services Firms, 1997..........................................................................................14 Exhibit 10-6 Top Industrial Services Firms, 2002..........................................................................................14 Exhibit 10-7 Top Industrial Services Firms, 2003..........................................................................................15 Exhibit 10-8 Abatement Services Market 1988-2006 ....................................................................................16 Exhibit 10-9 Asbestos Abatement Revenues, 1993........................................................................................17 Exhibit 10-10 Asbestos Abatement Revenues, 1996........................................................................................18 Exhibit 10-11 Asbestos Abatement Revenues, 2002........................................................................................18 Exhibit 10-12 Total and Shares of the U.S. Remediation Market, 2006 ..........................................................22 Exhibit 10-13 Historical and Projected Growth in US Remediation Market, 1988 – 2010 .............................23 Exhibit 10-14 Estimated Number of Sites and Remediation Costs 2004-2033 ................................................24 Exhibit 10-15 Remediation Market Subsectors Breakdown, 2006...................................................................25 Exhibit 10-16 U.S. Site Remediation Market, 1995 – 2006 .............................................................................25 Exhibit 10-17 Public vs. Private Revenues in Site Remediation, 1993 - 2006.................................................26 Exhibit 10-18 Site Remediation Market by Customer, 2006............................................................................27 Exhibit 10-19 U.S. Site Remediation Market by Service Type, 2006 ..............................................................28 Exhibit 10-20 U.S. Site Remediation Market by Service Type, 1995 – 2006 ..................................................28 Exhibit 10-21 U.S. Site Remediation Market by Competitor Type from 1992-2006.......................................29 Exhibit 10-22 U.S. Site Remediation Market by Competitor Type, 2005........................................................30 Exhibit 10-23 U.S. Site Remediation Market by Project Size, 2005 ................................................................31 Exhibit 10-24 U.S. Site Remediation Market, 2003-2010................................................................................32 Exhibit 10-25 Forcasted Growth By Market Category 2006............................................................................33 Exhibit 10-26 Environmental Protection Agency Budget: 2004-2008.............................................................39 Exhibit 10-27 Department of Denfense Budget: 2004- 2007 .........................................................................43 Exhibit 10-28 Department of Energy Budget: 2005-2008................................................................................47 Exhibit 10-29 Department of the Interior Budget: 2004-2008 ........................................................................47 Exhibit 10-30 Forcasted Growth by Government Client Type 2006................................................................53 Exhibit 10-31 WERC Contract Winners ..........................................................................................................58 Exhibit 10-32 GSA Environmental Service Schedules ....................................................................................67 Exhibit 10-33 Superfund by the Numbers ........................................................................................................77 Exhibit 10-34 Historical and Projected Growth in Superfund-Related Market, 1988 – 2010..........................77 Exhibit 10-35 Historical and Projected Growth in RCRA-Related Market, 1988 – 2010................................78 Exhibit 10-36 Historical and Projected Growth in Private/Non-Regulatory Remediation Market,

1988 – 2010 ...............................................................................................................................79 Exhibit 10-37 Forecasted Growth in 2006 by Private Client Type ..................................................................79 Exhibit 10-38 Overview of Federal Key Programs, 2004 - 2005 ...................................................................126 Exhibit 10-39 Historical and Projected Growth in UST Remediation Market, 1988 – 2010 .........................130 Exhibit 10-40 Historical and Projected Growth in State Superfund Market, 1988 – 2010 ............................134 Exhibit 10-41 Department of Defense Remediation Spending by Service, 1995-2005 .................................135 Exhibit 10-42 Top Ten DOD Clean-Up Facilities, 1995’s “$100 million club” ............................................136 Exhibit 10-43 Historical and Projected Growth in DOD Market, 1988 – 2010 .............................................136 Exhibit 10-44 BRAC V ROUND Major Closures .........................................................................................143 Exhibit 10-45 BRAC V ROUND Major Realignments..................................................................................144

Table of Contents

Page xxvi Report 2020 - The U.S. Environmental Industry & Global Market

Exhibit 10-46 Historical and Projected Growth in DOE Market, 1988 – 2010..............................................151 Exhibit 10-47 U.S. Department of Energy Budget .........................................................................................152 Exhibit 10-48 Major DOE-EM Contracts.......................................................................................................153 Exhibit 10-49 DOE Waste Management Contractors, 2001...........................................................................153 Exhibit 10-50 The Changing DOE Contractor Base: The 1970s & 1980s versus 2000 .................................155 Exhibit 10-51 Scheduled and Projected D&D of Commercial Reactors ........................................................161 Exhibit 10-52 Civilian Federal Agencies........................................................................................................164 Exhibit 10-53 Superfund Accomplishments through FY 2002 ......................................................................169 Exhibit 10-54 Importance of Market Drivers to Stimulating Remediation Expenditure by Clients

2007 .........................................................................................................................................180 Exhibit 10-55 EDR Annual Salary Survey- 2005 Respondent Demographics..............................................193 Exhibit 10-56 The Changing Importance of Key Buying Factors of Remediation Services ..........................194 Exhibit 10-57 2006 Forecast by Project type..................................................................................................200 Exhibit 10-58 Project Win Rates In 2005 .......................................................................................................200 Exhibit 10-59 Contract Types in 2005............................................................................................................200 Exhibit 10-60 Soil Remediation Technology Trends, 1996 – 2006 ...............................................................201 Exhibit 10-61 Groundwater Remediation Technology Trends, 1996 - 2006 .................................................202 Exhibit 10-62 Site Characterization Technology Trends, 1992 - 2006 ..........................................................202 Exhibit 10-63 Profitability by Project Type....................................................................................................204 Exhibit 10-64 Personnel Allocation................................................................................................................205 Exhibit 10-65 Personnel Allocation among Remediation Contrators.............................................................206 Exhibit 10-66 Growth of Competitor Types in Site Remediation Markets from 1988 – 2005.......................207 Exhibit 10-67 Growth of Competitor Types in Site Remediation Markets from 1988 - 2005 .......................208 Exhibit 10-68 Distribution of Remediation Companies, 2006 .......................................................................208 Exhibit 10-69 Top Remediation & Abatement Companies, 2006 ..................................................................209 Exhibit 10-70 Top 120 Remediation & Abatement Companies, 2006 ...........................................................210 Exhibit 10-71 Top Remediation Companies, 2003.........................................................................................213 Exhibit 10-72 Distribution of Remediation Companies, 2003 .......................................................................214 Exhibit 10-73 Top Remediation Companies, 2001.........................................................................................215 Exhibit 10-74 Distribution of Remediation Companies, 2001 .......................................................................216 Exhibit 10-75 Top Remediation Companies, 1999 & 2000............................................................................217 Exhibit 10-76 Distribution of Remediation Companies, 1999 .......................................................................217 Exhibit 10-77 Top Remediation Companies, 1996 & 1997............................................................................218 Exhibit 10-78 Distribution of Remediation Companies, 1997 .......................................................................218 Exhibit 10-79 Top Remediation Companies, 1994.........................................................................................219 Exhibit 10-80 Top Remediation Companies, 1992.........................................................................................220 Exhibit 10-81 Top Remediation Companies in Government Market, 2006 ...................................................222 Exhibit 10-82 Top Remediation Companies in Private Market, 2006............................................................223 Exhibit 10-83 Top Remediation Companies in DOE Market, 2006 ...............................................................224 Exhibit 10-84 Top Remediation Companies in DOD Market, 2006 ..............................................................225 Exhibit 10-85 Top Remediation Companies in RCRA Market, 2006 ............................................................226 Exhibit 10-86 Top Remediation Companies in Superfund Market, 2006 ......................................................227 Exhibit 10-87 Top Remediation Companies in US Department of Energy Market, 2003 .............................228 Exhibit 10-88 Top Remediation Companies in US Department of Defense Market, 2003 ............................228 Exhibit 10-89 Top Remediation Companies in Superfund Market, 2003 ......................................................229 Exhibit 10-90 Top Remediation Companies in State Programs Market, 2003 ...............................................229 Exhibit 10-91 Top Remediation Companies in RCRA Market, 2003 ............................................................230 Exhibit 10-92 Top Remediation Companies in UST Market, 2003................................................................230 Exhibit 10-93 Top Remediation Companies in Private/Brownfields Market, 2003 .......................................231 Exhibit 10-94 Top Remediation Companies in 2006: Ranked by Construction Revenues ............................232 Exhibit 10-95 Top Remediation Companies in 2006: Ranked by Consulting Revenues ...............................234 Exhibit 10-96 SEBAC Accomplishments.......................................................................................................329 Exhibit 10-97 Importance of Market Drivers to Stimulating Remediation Expenditure by Clients

2007 .........................................................................................................................................419

11. Hazardous Waste Management

© 2005 Environmental Business International Inc. San Diego, CA Page xxvii

Exhibit 10-98 Importance of Market Drivers to Stimulating Remediation Expenditure by Clients 2006 .........................................................................................................................................420

Exhibit 10-99 Importance of Market Drivers to Stimulating Remediation Expenditure by Clients 2004 .........................................................................................................................................420

Exhibit 10-100 Most important challenge for the Remediation Industry (Select Responses) 2007: ................421 Exhibit 10-101 Most Important Business Challenges Facing Individual Companies 2007: Select

Responses ................................................................................................................................421 Exhibit 10-102 Most important challenge for the Remediation Industry (Select Responses) 2006: ................422 Exhibit 10-103 Most Important Business Challenges Facing Individual Companies 2006: Select

Responses ................................................................................................................................423 Exhibit 10-104 Most important challenge for the Remediation Industry (Select Responses) 2004: ................423

11. Hazardous Waste Management 11.1. 2004 Review ..................................................................................................................................... 11-5 11.2. 2003 Review ................................................................................................................................... 11-12 11.3. 2002 Review ................................................................................................................................... 11-22 11.4. 2001 Review ................................................................................................................................... 11-30 11.5. Historical Review .......................................................................................................................... 11-31 11.6. Profiles of Leading Haz Waste Companies ............................................................................... 11-33

11.6.1. Hydromet Environmental Recovery Ltd (2004)....................................................................... 11-34 11.6.2. Ross Environmental Services Inc (2004).................................................................................. 11-35 11.6.3. Waste Control Specialists (2004).............................................................................................. 11-37 11.6.4. Clean Harbors, Inc. (2002) ....................................................................................................... 11-40 11.6.5. EQ–The Environmental Quality Co. (2002)............................................................................ 11-43 11.6.6. Heritage Environmental Services LLC (2002) ......................................................................... 11-47

11.7. Medical Waste Management ....................................................................................................... 11-54 11.7.1. Stericycle and Waste Management (2005) ............................................................................... 11-54 11.7.2. Stericycle Inc. (2002) ................................................................................................................ 11-56

11.8. Nuclear Waste Management ....................................................................................................... 11-59 11.8.1. Low Level Radioactive Waste Management ............................................................................. 11-59 11.8.2. High-Level Nuclear Waste........................................................................................................ 11-62

List of Exhibits Exhibit 11-1 Historical and Projected Growth in Hazardous Waste Management......................... 11-3 Exhibit 11-2 Hazardous Waste Management Market, 2000-2004 ...................................................... 11-3 Exhibit 11-3 Historical and Projected Growth in Hazardous Waste Management

(Industrial, Medical, Nuclear and Federal)..................................................................... 11-4 Exhibit 11-4 Commercial Hazardous Waste TSD Facilities (as of November 2003) ..................... 11-14 Exhibit 11-5 Top Haz Waste Companies, 2003 ................................................................................... 11-16 Exhibit 11-6 Top Hazardous Waste Companies, 2001....................................................................... 11-24 Exhibit 11-7 Major Commercial Hazardous Waste Companies and Service Offerings................ 11-26 Exhibit 11-8 U.S. Commercial Hazardous Treatment/Disposal/Recovery Facilities &

Service Offerings, by Region, 2002................................................................................. 11-28 Exhibit 11-9 Leading Companies in Hazardous Waste Management, 2001................................... 11-31 Exhibit 11-10 Distribution of Companies in Hazardous Waste Management, 1998 ....................... 11-32 Exhibit 11-11 Leading Companies in Hazardous Waste Management, 1998................................... 11-32 Exhibit 11-12 Distribution of Companies in Hazardous Waste Management, 1995 ....................... 11-32 Exhibit 11-13 Leading Companies in Hazardous Waste Management, 1995................................... 11-33

Table of Contents

Page xxviii Report 2020 - The U.S. Environmental Industry & Global Market

EQUIPMENT

12 Air Pollution Control Equipment 12.1 Total Air Quality Market Overview ............................................................................................. 12-5

12.1.1 Air Pollution Control Equipment............................................................................................... 12-6 12.1.2 Consulting & Engineering ......................................................................................................... 12-8

Historical Development of Air Quality Consulting & Engineering Markets.................... 12-11 Trends in Air C&E Markets and Market Drivers .................................................................. 12-13 2003 Compliance Drivers for C&E Firms ............................................................................... 12-15

12.1.3 Environmental Instrumentation............................................................................................... 12-16 12.1.4 Mobile Sources .......................................................................................................................... 12-20

Historical Development of Mobile APC Markets: California Leads the Way................... 12-20 Mobile Update: Diesel Rules Lead New Regulatory Drivers for Mobile Emission Controls ....................................................................................................................................... 12-22

12.1.5 Indoor Air Quality.................................................................................................................... 12-27 2005 Update: Growth Continues in Indoor Air Quality, but "Toxic" Mold Segment Stumbles...................................................................................................................................... 12-28 2002 Update: Mounting Toxic Mold Concern Puts Engine in Indoor Air Quality Market ......................................................................................................................................... 12-31

12.1.6 Emissions Credit Trading ......................................................................................................... 12-34 12.2 Markets for Stationary Source APC Equipment ....................................................................... 12-41

12.2.1 Historical Development of Stationary Source APC Markets ................................................... 12-41 12.2.2 Historical Context for APC Markets in the 90s ....................................................................... 12-42 12.2.3 Market Trend Analysis in 2005: Air Market Rides on Power Industry’s Thirst for Coal; Lags

on New Regulations.................................................................................................................. 12-45 12.2.4 Market Trend Analysis in 2002: Air Pollution Control Market Zeroes In on Electric Utilities12-53 12.2.5 APC Equipment Market by Equipment Type........................................................................... 12-60 12.2.6 APC Equipment Market by Pollutant ...................................................................................... 12-63 12.2.7 APC Equipment Market by Customer Type............................................................................. 12-66

2003 Utility Review.................................................................................................................... 12-69 12.2.8 Geographic Distribution of APC Equipment Markets ............................................................. 12-73 12.2.9 APC Equipment Market Industry Structure ........................................................................... 12-74 12.2.10 Top APC Equipment Companies .............................................................................................. 12-75 12.2.11 Top APC Equipment Companies by Equipment Type ............................................................. 12-79

Top APC Equipment Companies by Equipment Type 2004 ............................................... 12-79 Top APC Equipment Companies by Equipment Type 1997 ............................................... 12-82

12.2.12 Top APC Equipment Companies by Pollutant Type................................................................ 12-84 Top APC Equipment Companies by Pollutant Type 2004................................................... 12-85 Top APC Equipment Companies by Pollutant Type 1997................................................... 12-87

12.3 APC Regulations and Growth Areas.......................................................................................... 12-89 12.3.1 Historical Context of The Clean Air Act .................................................................................. 12-89 12.3.2 Major Long-Term CAAA Business Opportunities .................................................................. 12-92

Title I Non-Attainment.............................................................................................................. 12-94 Title II Mobile Sources............................................................................................................... 12-94 Title III Air Toxics ...................................................................................................................... 12-94 Title IV Acid Rain ...................................................................................................................... 12-95 Title VI Stratospheric Ozone .................................................................................................... 12-95 Title V Operating Permits......................................................................................................... 12-95

12.3.3 Review of Air Quality Policy & Market Drivers...................................................................... 12-96 12.3.4 2005 Air Quality Policy Update............................................................................................. 12-104

With "Clear Skies" Stalled, White House Pushes Interstate and Mercury Rules ............ 12-104

12 Air Pollution Control Equipment

© 2005 Environmental Business International Inc. San Diego, CA Page xxix

Bush’s Enforcement Record ................................................................................................... 12-112 Pollution Taxes......................................................................................................................... 12-121

12.4 APC Services and Technologies ................................................................................................ 12-126 12.4.1 NOx Prevention and Control ................................................................................................. 12-126

Background .............................................................................................................................. 12-126 Material Problems ................................................................................................................... 12-126 Low NOx Burner ..................................................................................................................... 12-127 NOx Removal........................................................................................................................... 12-127 Carbon Fibers ........................................................................................................................... 12-129 Summary of NOx Control ...................................................................................................... 12-129

12.4.2 VOC Control Market.............................................................................................................. 12-130 Market Background................................................................................................................. 12-130 VOC Emissions Volumes........................................................................................................ 12-131 VOC Emissions by Geographical Region............................................................................. 12-132 VOC Abatement Technologies .............................................................................................. 12-133

12.5 Forecast of Future Trends and Growth Scenarios for the Air Quality Industry ................ 12-136 12.6 Profiles of Leading APC Equipment Companies ................................................................... 12-139

12.6.1 GE Energy (2005)................................................................................................................... 12-139 12.6.2 Rentar (2005).......................................................................................................................... 12-141 12.6.3 Anguil Environmental (2005)................................................................................................ 12-145 12.6.4 John Zink (2005)..................................................................................................................... 12-147 12.6.5 Horiba Group (2005) .............................................................................................................. 12-150 12.6.6 Alstom Power and Environmental Control Systems (2002).................................................. 12-153 12.6.7 Anguil Environmental Systems, Inc. (2002) ......................................................................... 12-156 12.6.8 Fuel Tech Inc. (2002).............................................................................................................. 12-158 12.6.9 Hamon Research-Cottrell, Inc. (2002).................................................................................... 12-161 12.6.10 Environmental Elements Corp. (2002)................................................................................... 12-164 12.6.11 Croll-Reynolds Clean Air Technologies (2002) ...................................................................... 12-166 12.6.12 KleenAir Systems Inc. (2002)................................................................................................. 12-169 12.6.13 Thermatrix, Inc. (2002) .......................................................................................................... 12-172 12.6.14 GE Power Systems (2002) ...................................................................................................... 12-174 12.6.15 ABB Environmental Systems (1998) ..................................................................................... 12-177 12.6.16 Babcock & Wilcox Power Generation Group (1998) .............................................................. 12-179 12.6.17 Wheelabrator Air Pollution Control, Inc. (1998) ................................................................... 12-183 12.6.18 Belco Technologies Corp. (1998)............................................................................................. 12-185 12.6.19 Durr Environmental Inc. (1998)............................................................................................ 12-187 12.6.20 Johnson Matthey (1998) ......................................................................................................... 12-191

12.7 Profiles of Leading APC Consulting & Engineering Firms................................................... 12-194 12.7.1 Black & Veatch (2005)............................................................................................................ 12-195 12.7.2 Environ Corp. (2005) ............................................................................................................. 12-198 12.7.3 Earth Tech (2005) ................................................................................................................... 12-201 12.7.4 Trinity Consultants (2005) .................................................................................................... 12-203 12.7.5 ETS Inc. (2005) ...................................................................................................................... 12-206 12.7.6 Minnich and Scotto Inc. (2005).............................................................................................. 12-208 12.7.7 2001 Air Consulting Review with TRC, ERM, ENSR and Trinity (2002) .......................... 12-211 12.7.8 Radian International (now URS; 1998) ................................................................................. 12-216 12.7.9 ENSR Consulting & Engineering (1998) .............................................................................. 12-218 12.7.10 TRC Environmental (1998).................................................................................................... 12-222 12.7.11 Trinity Consultants, Inc. (1998) ............................................................................................ 12-225

12.8 Asia Review ................................................................................................................................. 12-228 12.8.1 Market Overview.................................................................................................................... 12-228 12.8.2 Japan, Australia/New Zealand ............................................................................................... 12-232 12.8.3 South Korea and Taiwan ........................................................................................................ 12-232 12.8.4 Long-Term Markets ................................................................................................................ 12-233

Table of Contents

Page xxx Report 2020 - The U.S. Environmental Industry & Global Market

List of Exhibits Exhibit 12-1 Air Quality Business Segments......................................................................................... 12-6 Exhibit 12-2 Mobile Source vs. Stationary Source, 1999 - 2004........................................................... 12-7 Exhibit 12-3 Historical and Projected Growth in the U.S. APC Segment: Stationary Source

Equipment and Mobile ...................................................................................................... 12-7 Exhibit 12-4 Components of the Air Consulting Market..................................................................... 12-9 Exhibit 12-5 Top 30 Environmental Consulting & Engineering Firms in Air Quality

Consulting, 2001................................................................................................................ 12-10 Exhibit 12-6 Top 30 Environmental Consulting & Engineering Firms in Air Quality

Consulting, 2003................................................................................................................ 12-11 Exhibit 12-7 Historical and Projected Growth in the U.S. Air Quality Consulting &

Engineering Services Segment (in $million) ................................................................. 12-12 Exhibit 12-8 Percent of Air Quality Revenues in the US C&E Market, 1970 - 2003....................... 12-13 Exhibit 12-9 Top Environmental Instrument Companies in 2002.................................................... 12-17 Exhibit 12-10 Historical and Projected Growth in the U.S. Air Quality Instruments

Segment.............................................................................................................................. 12-17 Exhibit 12-11 Primary Monitoring Strategies Expected Under CAM ............................................... 12-18 Exhibit 12-12 Top Mobile Source Emission Control Systems Manufacturers in the U.S................ 12-20 Exhibit 12-13 Historical and Projected Growth in the California Mobile Source APC

Equipment Segment, 1970 - 2010 .................................................................................... 12-22 Exhibit 12-14 Historical and Projected Growth in the U.S. Mobile Source APC Equipment

Segment, 1970 - 2010......................................................................................................... 12-22 Exhibit 12-15 Watched Markets, March 18 2005................................................................................... 12-36 Exhibit 12-16 EU Markets, March 21 2005............................................................................................. 12-36 Exhibit 12-17 Historical and Projected Growth in the U.S. Stationary Source APC

Equipment Segment, 1970 - 2010 .................................................................................... 12-42 Exhibit 12-18 Electrostatic Precipitator Market Leaders, 2005 ........................................................... 12-48 Exhibit 12-19 APC Equipment Purchases in China, 2005 ................................................................... 12-50 Exhibit 12-20 APC Equipment Market by Equipment Type, 1994..................................................... 12-61 Exhibit 12-21 APC Equipment Market by Equipment Type, 1997..................................................... 12-61 Exhibit 12-22 APC Equipment Market by Equipment Type, 2001..................................................... 12-62 Exhibit 12-23 APC Equipment Market by Equipment Type, 2004..................................................... 12-62 Exhibit 12-24 APC Equipment Market by Equipment Type, 1992 - 2004 ......................................... 12-63 Exhibit 12-25 APC Equipment Market by Pollutant, 1994.................................................................. 12-64 Exhibit 12-26 APC Equipment Market by Pollutant, 1997.................................................................. 12-64 Exhibit 12-27 APC Equipment Market by Pollutant, 2001.................................................................. 12-65 Exhibit 12-28 APC Equipment Market by Pollutant, 2004.................................................................. 12-65 Exhibit 12-29 APC Equipment Market by Pollutant, 1992 - 2004....................................................... 12-66 Exhibit 12-30 Share of APC Equipment Market by Power Utilities, 1990 - 2004 ............................. 12-66 Exhibit 12-31 APC Equipment Market by Customer Type, 1994....................................................... 12-67 Exhibit 12-32 APC Equipment Market by Customer Type, 1997....................................................... 12-67 Exhibit 12-33 APC Equipment Market by Customer Type, 2001....................................................... 12-68 Exhibit 12-34 APC Equipment Market by Customer Type, 2004....................................................... 12-68 Exhibit 12-35 APC Equipment Market by Customer Type, 1994 - 2004 ........................................... 12-69 Exhibit 12-36 Emissions Control Projects at U.S. Coal-Fired Power Plants...................................... 12-70 Exhibit 12-37 APC Equipment Market by State.................................................................................... 12-73 Exhibit 12-38 APC Equipment Markets by State.................................................................................. 12-74 Exhibit 12-39 U.S. Stationary Source APC Equipment Industry, 2003.............................................. 12-75 Exhibit 12-40 U.S. Stationary Source APC Equipment Industry, 2001.............................................. 12-75 Exhibit 12-41 APC Equipment Market Industry Structure, 1997 ....................................................... 12-75 Exhibit 12-42 The Top APC Equipment Companies in the U.S. Market, 2004................................. 12-76 Exhibit 12-43 The Top APC Equipment Companies in the U.S. Market, 2001................................. 12-77

13. Environmental Instrumentation

© 2005 Environmental Business International Inc. San Diego, CA Page xxxi

Exhibit 12-44 The Top APC Equipment Companies in the U.S. Market, 1997................................. 12-78 Exhibit 12-45 The Top APC Equipment Companies - Flue Gas Desulphurization, 2004............... 12-79 Exhibit 12-46 The Top APC Equipment Companies - Electrostatic Precipitators, 2004 ................. 12-80 Exhibit 12-47 The Top APC Equipment Companies - Fabric Filters & Baghouse Equipment,

2004 ..................................................................................................................................... 12-80 Exhibit 12-48 The Top APC Equipment Companies - Oxidation Systems, 2004 ............................. 12-81 Exhibit 12-49 The Top APC Equipment Companies - NOx Control, 2004 ....................................... 12-81 Exhibit 12-50 The Top APC Equipment Companies - Flue Gas Desulphurization, 1997............... 12-82 Exhibit 12-51 The Top APC Equipment Companies - Electrostatic Precipitators, 1997 ................. 12-82 Exhibit 12-52 The Top APC Equipment Companies - Fabric Filters & Baghouse Equipment,

1997 ..................................................................................................................................... 12-83 Exhibit 12-53 The Top APC Equipment Companies - Oxidation Systems, 1997 ............................. 12-83 Exhibit 12-54 The Top APC Equipment Companies - NOx Control, 1997 ....................................... 12-84 Exhibit 12-55 The Top APC Equipment Companies - Carbon Absorption, 1997 ............................ 12-84 Exhibit 12-56 The Top APC Equipment Companies - Particulates, 2004.......................................... 12-85 Exhibit 12-57 The Top APC Equipment Companies - Sulfur Oxides, 2004...................................... 12-85 Exhibit 12-58 The Top APC Equipment Companies - VOCs, 2004.................................................... 12-86 Exhibit 12-59 The Top APC Equipment Companies - HAPs, 2004.................................................... 12-86 Exhibit 12-60 The Top APC Equipment Companies - NOx & CO, 2004........................................... 12-86 Exhibit 12-61 The Top APC Equipment Companies - Particulates, 1997.......................................... 12-87 Exhibit 12-62 The Top APC Equipment Companies - Sulfur Oxides, 1997...................................... 12-87 Exhibit 12-63 The Top APC Equipment Companies - VOCs, 1997.................................................... 12-88 Exhibit 12-64 The Top APC Equipment Companies - HAPs, 1997.................................................... 12-88 Exhibit 12-65 The Top APC Equipment Companies - NOx & CO, 1997........................................... 12-88 Exhibit 12-66 Summary of Clean Air Act Amendment Sections ....................................................... 12-90 Exhibit 12-67 Summary of CAAA Business Opportunities ................................................................ 12-93 Exhibit 12-68 Key Multipollutant Proposals....................................................................................... 12-101 Exhibit 12-69 Recent Air-Related Enforcement Accomplishments ................................................. 12-116 Exhibit 12-70 U.S. NOx Control Market Equipment Sales, 2002...................................................... 12-127 Exhibit 12-71 Suppliers of Combustion Systems................................................................................ 12-127 Exhibit 12-72 Selected Processes and Companies in SOx and NOx Control.................................. 12-129 Exhibit 12-73 Emissions of Nonmethane VOCs from Industrial Processes ................................... 12-132 Exhibit 12-74 Regional Emission Estimates of Nonmethane VOCs (million metric tons) .......... 12-133 Exhibit 12-75 Summary of VOC Abatement Technologies............................................................... 12-134 Exhibit 12-76 Projected Growth in the California ‘Core APC’ and the Clean Air Products

Segments ($mil)............................................................................................................... 12-137 Exhibit 12-77 Percentage of the Air Quality Market Represented by the ‘Core APC’ versus

the Clean Air Products Segments, 1970-2010.............................................................. 12-138

13. Environmental Instrumentation 13.1. Introduction ..................................................................................................................................... 13-3 13.2. Development of the Environmental Instrumentation Industry................................................ 13-3 13.3. 2005 Review ..................................................................................................................................... 13-5 13.4. 2002 Review ................................................................................................................................... 13-12 13.5. Historical Review .......................................................................................................................... 13-21

13.5.1. Environmental Instrumentation Market Segments ................................................................. 13-22 13.5.2. Global, Regional and Emerging Markets.................................................................................. 13-48 13.5.3. Consolidations and Divestitures............................................................................................... 13-55 13.5.4. Summary .................................................................................................................................. 13-55

13.6. Top Environmental Instrumentation Manufacturers............................................................... 13-57

Table of Contents

Page xxxii Report 2020 - The U.S. Environmental Industry & Global Market

13.7. Environmental Management Information Systems (EMIS) Market....................................... 13-59 13.7.1. Q&A with the Leading EMIS Analyst..................................................................................... 13-68 13.7.2. EPA and States Collaborate on Network for Electronic Reporting .......................................... 13-70

List of Exhibits Exhibit 13-1 Historical and Projected Growth in the Environmental Instrumentation

Industry................................................................................................................................ 13-4 Exhibit 13-2 U.S. Environmental Instrumentation Market by Product Type, 1998 - 2004.............. 13-6 Exhibit 13-3 U.S. Environmental Instrumentation Market by Product Type, 2004 ......................... 13-6 Exhibit 13-4 Environmental Software & Information Service Companies, 2004 ............................. 13-6 Exhibit 13-5 Top 30 Analytical and Life Science Instrument Companies, 2004 ............................... 13-7 Exhibit 13-6 Global Instrument Industry (all applications) .............................................................. 13-14 Exhibit 13-7 Growth of the Global Environmental Instrumentation Market,1995-2000............... 13-22 Exhibit 13-8 Comparative Growth between Environmental Instruments, Environmental

Industry and the Analytical Instrument Industry, 1995 - 2000 .................................. 13-22 Exhibit 13-9 1995 Global Environmental Instrument Market by Media ......................................... 13-24 Exhibit 13-10 Projected Global Market for Air Quality Instrumentation (1995-2000)..................... 13-25 Exhibit 13-11 Primary Monitoring Strategies Expected Under CAM ............................................... 13-26 Exhibit 13-12 1995 U.S. Water Quality Market ..................................................................................... 13-28 Exhibit 13-13 Projected Global Market for Water & Wastewater Instrumentation (1995-

2000).................................................................................................................................... 13-29 Exhibit 13-14 Applications Used with Water & Wastewater Instruments ....................................... 13-30 Exhibit 13-15 Major Suppliers in Water Quality Market:.................................................................... 13-32 Exhibit 13-16 Projected Global Market for Groundwater Instrumentation (1995-2000)................. 13-33 Exhibit 13-17 Projected Market for Hazardous Waste Instrumentation (1995-2000) ...................... 13-34 Exhibit 13-18 Environmental Instrumentation by Application (1993 & 1995) ................................. 13-35 Exhibit 13-19 Projected Growth Rates of Environmental Instrument Market by Application

1996-2000............................................................................................................................ 13-36 Exhibit 13-20 Projected Market for Environmental In-Lab Analytical Instruments (1995-

2000).................................................................................................................................... 13-37 Exhibit 13-21 Projected Market for In-Line/Process Control Instrumentation (1995-2000)........... 13-39 Exhibit 13-22 Projected Market for Environmental Portable/Field Analytical

Instrumentation (1996-2000)............................................................................................ 13-40 Exhibit 13-23 Projected Market for Continuous Emissions Monitors (1995-2000) .......................... 13-41 Exhibit 13-24 Top 1994 CEM Vendors ................................................................................................... 13-43 Exhibit 13-25 Projected Market for Test Kits (1995-2000).................................................................... 13-44 Exhibit 13-26 Environmental Instrumentation Market by End-Client (1993 & 1995) ..................... 13-45 Exhibit 13-27 Projected Market for Environmental Instrumentation by End Client (1995-

2000).................................................................................................................................... 13-46 Exhibit 13-28 1995 Industry/Generator Breakdown ........................................................................... 13-48 Exhibit 13-29 Global Environmental Instrumentation Sales by Region, 1993 and 1995 ................. 13-49 Exhibit 13-30 Projected Global Environmental Instrumentation Market by Region (1995-

2000).................................................................................................................................... 13-50 Exhibit 13-31 Global Environmental Instrumentation End Client by US and Non-US

Markets in 1993 and 1995................................................................................................. 13-51 Exhibit 13-32 Top Environmental Instrument Manufacturers, 2000 ................................................. 13-57 Exhibit 13-33 Top Environmental Instrument Manufacturers, 1994 ................................................ 13-58

14. Water/Wastewater Treatment Equipment and Chemicals

© 2005 Environmental Business International Inc. San Diego, CA Page xxxiii

14. Water/Wastewater Treatment Equipment and Chemicals 14.1. Water Industry Overview .............................................................................................................. 14-3

14.1.1. Structure of Water and Wastewater Treatment Business .......................................................... 14-5 14.1.2. Types of Water/Wastewater Treatment Markets........................................................................ 14-8

Agricultural Water Delivery/Treatment.................................................................................. 14-9 Thermoelectric Utilities............................................................................................................. 14-10 Industrial In-Process and Effluent........................................................................................... 14-10 Municipal Water Delivery & Effluent, Including Storm Water .......................................... 14-10 Landfill Leachate and Groundwater Remediation ............................................................... 14-11

14.1.3. Do-It-Yourself: The "Make" Or "Buy" Choice ....................................................................... 14-12 14.1.4. Small Flow/Discharge Customers............................................................................................. 14-13 14.1.5. Point of Entry, Point of Use (POE/POU) Water Business...................................................... 14-13 14.1.6. Sales Channels .......................................................................................................................... 14-14 14.1.7. Status of Market Sectors: Flow and Contaminants .................................................................. 14-17 14.1.8. Complex Treatment Trains....................................................................................................... 14-19 14.1.9. Total Market Size and Growth: by Equipment Type................................................................ 14-20

"Total Solution" Company Morphs into Integrated Players................................................ 14-21 Separation Technology Companies ........................................................................................ 14-22 Destruction & Disinfection Technology Companies ............................................................ 14-22 Chemical Equipment Companies............................................................................................ 14-26 Delivery Equipment .................................................................................................................. 14-26 Chemical (Bulk and Specialty) Companies............................................................................ 14-27 Water Services, Consulting & Engineering Segments.......................................................... 14-28

14.1.10. Industry Sector Growth Rates .................................................................................................. 14-29 14.2. Competitive Analysis ................................................................................................................... 14-31

14.2.1. Water Treatment Technology Types......................................................................................... 14-31 The "Total Solution" Company Revisited............................................................................... 14-35 Separation Equipment .............................................................................................................. 14-38 Destruction/Disinfection Equipment (Biological an Physical) ........................................... 14-39 Biosolids Equipment and Services .......................................................................................... 14-41 Chemical Equipment................................................................................................................. 14-46 The Issue of Construction......................................................................................................... 14-46

14.2.2. Top Water Equipment Companies............................................................................................ 14-48 Ranking of the Top Companies in the US – 1993, 1995, 2000 & 2004................................. 14-48 Equipment Company Profiles.................................................................................................. 14-57 Old Profiles................................................................................................................................. 14-75

14.2.3. Client Type Analysis ................................................................................................................ 14-79 14.2.4. Geographic Distribution of Water Equipment and Chemical Markets .................................... 14-81 14.2.5. Water Equipment’s Relationship to Other Environmental Media........................................... 14-84

14.3. General Market Trends and Growth Areas............................................................................... 14-86 14.3.1. Closing the Loop - Onsite and Distributed Recycling.............................................................. 14-86 14.3.2. Desalination.............................................................................................................................. 14-87 14.3.3. Automation and Packaged Systems, and Integrations of Diverse Systems.............................. 14-88 14.3.4. Creation of Technology Standardization .................................................................................. 14-90 14.3.5. Continuous Innovations, Chemicals to Membranes................................................................. 14-91 14.3.6. Continuous Evolution of Regulations ...................................................................................... 14-92

14.4. Appendix........................................................................................................................................ 14-94 14.4.1. Foreign Companies in the US................................................................................................... 14-94 14.4.2. Update on Siemens-USFilter Deal ........................................................................................... 14-98

List of Exhibits Exhibit 14-1 Water Commerce Map....................................................................................................... 14-4

Table of Contents

Page xxxiv Report 2020 - The U.S. Environmental Industry & Global Market

Exhibit 14-2 The U.S. Water Industry, 2004 .......................................................................................... 14-5 Exhibit 14-3 Structure of the Wastewater Treatment Market in the United States.......................... 14-7 Exhibit 14-4 Tendency of Users to Make/Buy/Hire in Each Segment of the Water and

Wastewater Treatment Market ......................................................................................... 14-9 Exhibit 14-5 Water/Wastewater Treatment System Size Examples................................................ 14-14 Exhibit 14-6 Sales Channels in the Municipal Water/Wastewater Treatment Market................. 14-16 Exhibit 14-7 Sales Channels in the Industrial & Remediation Water/Wastewater

Treatment Market ............................................................................................................. 14-17 Exhibit 14-8 General Treatment Stream Characteristics.................................................................... 14-19 Exhibit 14-9 Water/Wastewater Industry in the United States, 2000-2004 .................................... 14-20 Exhibit 14-10 Water Treatment Equipment, 2000-2004 ....................................................................... 14-21 Exhibit 14-11 Water Treatment Equipment Market, 2004................................................................... 14-26 Exhibit 14-12 Delivery Equipment and Treatment Chemicals Market, 2004 ................................... 14-28 Exhibit 14-13 Water Services, Consulting & Engineering Segments, 2004 ....................................... 14-29 Exhibit 14-14 Growth of the United States Water Industry, 2004-2010 ($Millions) ........................ 14-30 Exhibit 14-15 Categories of Water/Wastewater Separation and Destruction Treatment

Technologies ...................................................................................................................... 14-33 Exhibit 14-16 Use Preferences for Water/Wastewater Treatment Technologies............................. 14-35 Exhibit 14-17 Historical Review of the Top 10 Water Companies, 1993 to 2000.............................. 14-37 Exhibit 14-18 Separation Equipment Companies, 2004....................................................................... 14-39 Exhibit 14-19 Destruction/Disinfection Equipment Companies, 2004 ............................................. 14-41 Exhibit 14-20 Top Contracting Firms by Revenues Related to Water, 2000 ..................................... 14-47 Exhibit 14-21 Water Equipment & Chemicals Company Revenues, 2004 ........................................ 14-48 Exhibit 14-22 Top Water and Wastewater Equipment Companies, 1993 ......................................... 14-49 Exhibit 14-23 Top Water and Wastewater Equipment Companies, 1995 ......................................... 14-51 Exhibit 14-24 Top Water and Wastewater Treatment Equipment Companies, 2000 ...................... 14-52 Exhibit 14-25 Top Water and Wastewater Treatment Equipment & Chemicals (WEC)

Companies, 2004 ............................................................................................................... 14-53 Exhibit 14-26 Top Water and Wastewater Treatment Equipment Companies, 2004 ...................... 14-54 Exhibit 14-27 Top Water and Wastewater Delivery Equipment Companies, 2004 ......................... 14-55 Exhibit 14-28 Top Water and Wastewater Treatment Chemicals Companies, 2004 ....................... 14-55 Exhibit 14-29 Top WEC Exporters, 2004................................................................................................ 14-56 Exhibit 14-30 U.S. Water/Wastewater Treatment Equipment Markets............................................ 14-80 Exhibit 14-31 U.S. Water/Wastewater Treatment Equipment Markets, 2004.................................. 14-80 Exhibit 14-32 Water Equipment & Chemicals Market Revenues by State (2000) ............................ 14-82 Exhibit 14-33 Water Treatment Equipment Only, Market Revenues by State (2000) ..................... 14-83 Exhibit 14-34 Top Ten State Water/Wastewater Equipment & Chemical Markets (2000) ............ 14-84 Exhibit 14-35 Examples of Odor Control Applications ....................................................................... 14-85 Exhibit 14-36 Trend Toward Closed Loop Automated Systems........................................................ 14-89

15. Waste Management Equipment 15.1. Waste Management Equipment Market ...................................................................................... 15-3

15.1.1. 2004 Review................................................................................................................................ 15-5 15.1.2. 2003 Review................................................................................................................................ 15-7

15.2. WME Company Profiles................................................................................................................. 15-9 15.2.1. Compaction America................................................................................................................... 15-9 15.2.2. Heil Environmental Industries ................................................................................................. 15-12 15.2.3. Morbark Inc. ............................................................................................................................. 15-14 15.2.4. Rehrig Pacific Company ........................................................................................................... 15-17 15.2.5. Leach Company......................................................................................................................... 15-20

16. Process & Prevention Technology

© 2005 Environmental Business International Inc. San Diego, CA Page xxxv

15.2.6. Wastequip ................................................................................................................................. 15-22 15.3. Leading Companies in Waste Management Equipment ......................................................... 15-25

15.3.1. Selected Companies in Waste Containers................................................................................. 15-25 15.3.2. Selected Companies in Liners ................................................................................................... 15-26 15.3.3. Selected Companies in Recycling Equipment........................................................................... 15-27 15.3.4. Companies in Waste Vehicles and Bodies................................................................................. 15-28

List of Exhibits Exhibit 15-1 Waste Management Equipment Market by Equipment Type 2000-2004 ................... 15-3 Exhibit 15-2 Waste Management Equipment Market by Major Equipment Category, 2000-

2004 ....................................................................................................................................... 15-4 Exhibit 15-3 Historical Sales of Waste Management Equipment, 1991-2001 ................................... 15-5

16. Process & Prevention Technology 16.1 Defining Pollution Prevention Technology................................................................................. 16-5 16.2 Developers of PPT........................................................................................................................... 16-7 16.3 Public and Private Investment in PPT.......................................................................................... 16-8 16.4 Public Companies Offering P2 Technology ................................................................................ 16-9 16.5 Private-Sector Companies Offering PPT.................................................................................... 16-10

16.5.1 Recycling & Recovery Technologies ......................................................................................... 16-11 16.5.2 Recycling--HazWaste ............................................................................................................... 16-11 16.5.3 Recycling--Oil........................................................................................................................... 16-13 16.5.4 Recycling--CFCs....................................................................................................................... 16-13 16.5.5 Recycling--Containers .............................................................................................................. 16-13 16.5.6 Recycling--Metals..................................................................................................................... 16-13 16.5.7 Recycling--Explosives............................................................................................................... 16-14 16.5.8 Recycling-Tires ......................................................................................................................... 16-14 16.5.9 Recycling--Water/Wastewater.................................................................................................. 16-14 16.5.10 Recycling--Scrap into Wood/Plastic Lumber............................................................................ 16-14 16.5.11 Materials Substitution.............................................................................................................. 16-15

16.6 New Manufacturing Processes, Process Substitutions, In-Kind Processes........................... 16-17 16.6.1 Pesticide Alternatives ............................................................................................................... 16-19 16.6.2 New Chemistry ......................................................................................................................... 16-19 16.6.4 Product Substitution ................................................................................................................ 16-20 16.6.5 Biodegradable Plastics............................................................................................................... 16-21 16.6.6 Energy Efficiency...................................................................................................................... 16-21 16.6.7 Durable And Nondurable Products.......................................................................................... 16-21 16.6.8 Enzyme Technology.................................................................................................................. 16-22 16.6.9 The Process Engineers .............................................................................................................. 16-22

16.7 List of Resources............................................................................................................................ 16-24 16.8 Conclusion...................................................................................................................................... 16-25 List of Exhibits Exhibit 16-1 Process & Prevention Technology.................................................................................... 16-4 Exhibit 16-2 Process & Prevention Technology Market Potential by Customer.............................. 16-6

Table of Contents

Page xxxvi Report 2020 - The U.S. Environmental Industry & Global Market

17. Wastewater Treatment Works 17.1. Wastewater Treatment Industry Overview................................................................................. 17-3

17.1.1. Markets & Drivers...................................................................................................................... 17-5 17.2. Publicly Owned Treatment Works (POTWs) .............................................................................. 17-7

17.2.1. Size and Concentration of Wastewater Treatment Works.......................................................... 17-8 17.2.2. Revenues and Expenditures........................................................................................................ 17-9

Residential Dischargers ............................................................................................................ 17-10 Industrial Dischargers............................................................................................................... 17-12 Wastewater Facility Expenditures........................................................................................... 17-14

17.2.3. Needs & Opportunities ............................................................................................................. 17-16 Municipal Sales Attributes ....................................................................................................... 17-17

17.2.4. Treatment Methods/Techniques................................................................................................ 17-18 Primary Treatment .................................................................................................................... 17-20 Secondary Treatment ................................................................................................................ 17-20 Tertiary/Advanced Treatment ................................................................................................ 17-21

17.3. Current and Future Market Drivers ........................................................................................... 17-22 List of Exhibits Exhibit 17-1 Flow of Revenues Related to Wastewater Treatment.................................................... 17-4 Exhibit 17-2 U.S. Environmental Industry: Revenues by Media, 2003.............................................. 17-5 Exhibit 17-3 Rate of Increase of Water & Wastewater Charges vs. Inflation.................................... 17-7 Exhibit 17-4 Treatment Facilities In Operation In 1996 ....................................................................... 17-8 Exhibit 17-5 Treatment Facilities In Operation When Needs Are Met.............................................. 17-9 Exhibit 17-6 Sources of Revenue for POTW Facilities (1999, 1996 & 1992) .................................... 17-10 Exhibit 17-7 Residential Water Use & Wastewater Volumes (1999)................................................ 17-11 Exhibit 17-8 Rate Structures Used by POTWs for Residential Customers (1999).......................... 17-11 Exhibit 17-9 Billing Frequencies For Residential Customers (1999) ............................................ 17-12 Exhibit 17-10 Residential Billing Frequencies vs. Annual Service Charge (1999 compared to

previous survey years) ..................................................................................................... 17-12 Exhibit 17-11 Rates for Treating Industrial Wastewater (1999, With 1996 and 1993

comparisons) ..................................................................................................................... 17-13 Exhibit 17-12 Surcharge Limits for BOD & TSS (1999) ........................................................................ 17-14 Exhibit 17-13 Billing Frequencies for Industrial Users, 1999 .............................................................. 17-14 Exhibit 17-14 Expenditures by POTW Facilities (1999 & 1996 Comparison) ................................... 17-15 Exhibit 17-15 Needs for POTW Facilities .............................................................................................. 17-16 Exhibit 17-16 Top States for Documented Needs by POTW’s............................................................ 17-17 Exhibit 17-17 Level of Wastewater Treatment by POTWs.................................................................. 17-19 Exhibit 17-18 Wastewater Sources (1999) .............................................................................................. 17-20 Exhibit 17-19 Wastewater Equipment Capital Spending (1999) ........................................................ 17-22

GLOBAL MARKET

18. Global Environmental Market 18.1. Introduction ..................................................................................................................................... 18-6

18.1.1. Environmental Industry Background......................................................................................... 18-8 18.1.2. Environmental Industry Segments........................................................................................... 18-10 18.1.3. Market Drivers ......................................................................................................................... 18-13

18. Global Environmental Market

© 2005 Environmental Business International Inc. San Diego, CA Page xxxvii

18.1.4. Regulation and Enforcement .................................................................................................... 18-13 18.1.5. Reputation and Risk ................................................................................................................. 18-14 18.1.6. Infrastructure rehabilitation and expansion............................................................................. 18-15 18.1.7. The Energy Transformation ..................................................................................................... 18-16 18.1.8. Sustainability & Resource Economics as Environmental Market Drivers .............................. 18-17

18.2. Global Market Review 2003......................................................................................................... 18-18 18.3. Global Market Review 2001......................................................................................................... 18-32 18.4. Agency Profile: U.S.-Asia Environmental Partnership (US-AEP).......................................... 18-38 18.5. North American Group: U.S. and Canada................................................................................. 18-42

18.5.1. United States ............................................................................................................................ 18-42 18.5.2. Canada ...................................................................................................................................... 18-43

Opportunities ............................................................................................................................. 18-44 Environmental Market.............................................................................................................. 18-45 Green Plan .................................................................................................................................. 18-46

18.6. Latin America ................................................................................................................................ 18-46 18.6.1. Introduction .............................................................................................................................. 18-46

Economic Background .............................................................................................................. 18-48 Environmental Markets ............................................................................................................ 18-49

18.6.2. Central America........................................................................................................................ 18-53 18.6.3. 2006 Update.............................................................................................................................. 18-53

Ongoing Challenges .................................................................................................................. 18-56 18.6.4. 2003 Review.............................................................................................................................. 18-58 18.6.5. A Country Sampler................................................................................................................... 18-65

Mexico ......................................................................................................................................... 18-65 Argentina .................................................................................................................................... 18-68 Chile............................................................................................................................................. 18-69 Colombia..................................................................................................................................... 18-70 Venezuela ................................................................................................................................... 18-71 Brazil............................................................................................................................................ 18-72

18.7. Asia.................................................................................................................................................. 18-75 18.7.1. Introduction .............................................................................................................................. 18-75 18.7.2. East Asia ................................................................................................................................... 18-77

Introduction................................................................................................................................ 18-77 China ........................................................................................................................................... 18-79 Japan............................................................................................................................................ 18-95 Korea (North and South) ........................................................................................................ 18-101 Taiwan....................................................................................................................................... 18-104

18.7.3. Southeast Asia ........................................................................................................................ 18-106 Introduction.............................................................................................................................. 18-106 Indonesia................................................................................................................................... 18-109 Thailand .................................................................................................................................... 18-112 Singapore .................................................................................................................................. 18-114 Vietnam..................................................................................................................................... 18-119

18.7.4. South Asia............................................................................................................................... 18-123 Introduction.............................................................................................................................. 18-123 India........................................................................................................................................... 18-124

18.8. Australia & New Zealand .......................................................................................................... 18-132 18.8.1. Australia ................................................................................................................................. 18-132

Introduction.............................................................................................................................. 18-132 Environmental Industry ......................................................................................................... 18-132 Environmental Regulations.................................................................................................... 18-134 Environmental Industry Needs ............................................................................................. 18-135

18.8.2. New Zealand........................................................................................................................... 18-136 Introduction.............................................................................................................................. 18-136 Environmental Spending and Market Opportunities ........................................................ 18-137

Table of Contents

Page xxxviii Report 2020 - The U.S. Environmental Industry & Global Market

18.9. Africa............................................................................................................................................. 18-138 18.9.1. Introduction ............................................................................................................................ 18-138

Economic Background ............................................................................................................ 18-139 Environmental Overview ....................................................................................................... 18-140

18.10. Middle East .................................................................................................................................. 18-142 18.10.1. Introduction ............................................................................................................................ 18-142

Economic Background ............................................................................................................ 18-144 Environmental Industry ......................................................................................................... 18-145

18.10.2. A Country Sampler................................................................................................................. 18-147 Iran............................................................................................................................................. 18-147 Saudi Arabia ............................................................................................................................. 18-148 Turkey ....................................................................................................................................... 18-149

18.11. Eastern Europe and Russia ........................................................................................................ 18-151 18.11.1. Introduction ............................................................................................................................ 18-151 18.11.2. 2006 Update............................................................................................................................ 18-154 18.11.3. 2003 Review............................................................................................................................ 18-156 18.11.4. A Country Sampler................................................................................................................. 18-161

Russia ........................................................................................................................................ 18-161 Poland........................................................................................................................................ 18-163 Czech Republic......................................................................................................................... 18-165 Hungary .................................................................................................................................... 18-166 Bulgaria ..................................................................................................................................... 18-168 Romania .................................................................................................................................... 18-169 Croatia ....................................................................................................................................... 18-171

18.12. Western Europe ........................................................................................................................... 18-172 18.12.1. Introduction ............................................................................................................................ 18-172

Background............................................................................................................................... 18-172 Economy.................................................................................................................................... 18-173 Environmental Industry ......................................................................................................... 18-175

18.12.2. 2006 Update............................................................................................................................ 18-179 18.12.3. Regional Overview: A Country Sampler................................................................................ 18-182

Germany.................................................................................................................................... 18-183 France ........................................................................................................................................ 18-185 United Kingdom ...................................................................................................................... 18-187 Italy ............................................................................................................................................ 18-193 Spain .......................................................................................................................................... 18-194

18.13. Profiles of U.S. Companies......................................................................................................... 18-195 18.13.1. Energy Recovery, Inc. ............................................................................................................. 18-195 18.13.2. ERM........................................................................................................................................ 18-198 18.13.3. Han’s Technologies, Inc. ......................................................................................................... 18-201 18.13.4. ICF International, Inc. ............................................................................................................ 18-204 18.13.5. Inogen Environmental Alliance.............................................................................................. 18-207 18.13.6. Louis Berger Group, Inc. ........................................................................................................ 18-209 18.13.7. Mabbett & Associates, Inc. ..................................................................................................... 18-213 18.13.8. MWH Global, Inc. .................................................................................................................. 18-216 18.13.9. SCS Engineers, Inc. ................................................................................................................ 18-219 18.13.10. Earth Tech............................................................................................................................... 18-222 18.13.11. ARCADIS............................................................................................................................... 18-225 18.13.12. ENSR ...................................................................................................................................... 18-229 18.13.13. ERM........................................................................................................................................ 18-232 18.13.14. Haley & Aldrich...................................................................................................................... 18-236 18.13.15. Clean Earth Technology.......................................................................................................... 18-239 18.13.16. DRiWater................................................................................................................................ 18-242 18.13.17. North Creek Analytical........................................................................................................... 18-244 18.13.18. San-I-Pak ................................................................................................................................ 18-247

18. Global Environmental Market

© 2005 Environmental Business International Inc. San Diego, CA Page xxxix

18.13.19. Soluz ....................................................................................................................................... 18-250 List of Exhibits Exhibit 18-1 The Global Environmental Market ($Billion U.S.) ......................................................... 18-6 Exhibit 18-2 The Global Environmental Market 1993-2010 ($Bil)...................................................... 18-8 Exhibit 18-3 Industry Segments and Numbers of US Companies ..................................................... 18-9 Exhibit 18-4 The Global Environmental Market by Segment 2003-2004 ($Bil) .............................. 18-10 Exhibit 18-5 Environmental Industry Segments................................................................................. 18-11 Exhibit 18-6 2004 US Environmental Industry Exports..................................................................... 18-12 Exhibit 18-7 Global Environmental Industry Trade Flows............................................................... 18-12 Exhibit 18-8 Global Environmental Market by Region, 2004 ........................................................... 18-19 Exhibit 18-9 U.S. Environmental Trade Balance, 2004....................................................................... 18-21 Exhibit 18-10 U.S. Environmental Industry Exports Performance, 1997 - 2004............................... 18-21 Exhibit 18-11 Companies and Exporters in the U.S. Environmental Industry, 2004....................... 18-22 Exhibit 18-12 Water and Wastewater Markets of 12 "Best Prospect" Countries .............................. 18-23 Exhibit 18-13 Top 20 U.S. Environmental Exports Markets ............................................................... 18-24 Exhibit 18-14 Global Environmental Market by Region and by Segment, 2000 - 2004................... 18-25 Exhibit 18-15 Environmental Markets in Asia-Pacific, 1998 – 2010................................................... 18-26 Exhibit 18-16 Environmental Markets in Latin America, 1998 - 2010 ............................................... 18-26 Exhibit 18-17 Environmental Markets in Western Europe, 1997 - 2004............................................ 18-27 Exhibit 18-18 Top Global Environmental Companies, 2001 ............................................................... 18-28 Exhibit 18-19 Environmental Industry Competitiveness .................................................................... 18-33 Exhibit 18-20 Top Global Environmental Companies, 1998 ............................................................... 18-36 Exhibit 18-21 Sample Projects Co-Financed by Asian Development Bank ...................................... 18-40 Exhibit 18-22 U.S. Environmental Trade Balance, 2004....................................................................... 18-43 Exhibit 18-23 Environmental Markets in Latin America, 2000-2010 ................................................. 18-50 Exhibit 18-24 Environmental Market in Brazil: Ups and Downs....................................................... 18-63 Exhibit 18-25 The Environmental Industry in Mexico, 1992 .............................................................. 18-67 Exhibit 18-26 Environmental Markets in the Asia-Pacific: 2000-2010 .............................................. 18-75 Exhibit 18-27 Environmental Market in China: 1997 & 2000............................................................. 18-83 Exhibit 18-28 Business Vehicles in the Chinese Market Advantages and Disadvantages ............. 18-93 Exhibit 18-29 Japan Environmental Market, 1997-2004....................................................................... 18-97 Exhibit 18-30 Japanese Environmental Equipment Market by Equipment Type, 1990 - 1994 ...... 18-98 Exhibit 18-31 Environmental Industry in Indonesia, 1994................................................................ 18-111 Exhibit 18-32 Environmental Industry in India.................................................................................. 18-129 Exhibit 18-33 Australian and New Zealand Environmental Market by Segment 2004................ 18-133 Exhibit 18-34 Environmental Industry in Australia, 1995 ($ millions)............................................ 18-135 Exhibit 18-35 Australian and New Zealand Environmental Market by Segment 2004................ 18-137 Exhibit 18-36 The African Environmental Market by Segment 2003-2004 ($Bil)........................... 18-140 Exhibit 18-37 Environmental Industry in Africa, 1993 ...................................................................... 18-141 Exhibit 18-38 The Middle Eastern Environmental Market by Segment 2003-2004 ($Bil)............. 18-145 Exhibit 18-39 Eastern European Economic Growth 1997-2005 ........................................................ 18-152 Exhibit 18-40 Eastern European Environmental Market ($bil): 1996-2004 ..................................... 18-153 Exhibit 18-41 Eastern European Environmental Markets as a Function of GDP........................... 18-155 Exhibit 18-42 Tiers of Western European Countries in the 1990s .................................................... 18-174 Exhibit 18-43 Summary of Market “Tiers” of Western European Countries (mid-90s) ............... 18-174 Exhibit 18-44 Western European Economic Growth 1997-2004....................................................... 18-175 Exhibit 18-45 Western European Environmental Market 1996-2004............................................... 18-179 Exhibit 18-46 Western European Environmental Market as a Function of GDP........................... 18-182

Table of Contents

Page xl Report 2020 - The U.S. Environmental Industry & Global Market

Exhibit 18-47 Top U.K. Environmental Consulting Firms* (Environmental sales greater than £10 million) ............................................................................................................. 18-191

Exhibit 18-48 ERM Services: Global Distribution............................................................................... 18-234