Environmental Consulting Industry Paper
Comparing AECOM and Jacobs Engineering
Environmental consulting is a service based industry requiring low capital but high investment in human resources. The industry has grown in new directions with businesses push toward environmental sustainability at the behest of the public. The industry is impacted by natural fluctuations related to economic growth and recession which impacts government spending (the largest source of industry funding). Environmental consulting firms are sought out by private companies to assist with meeting legal environmental requirements to operate and develop business. Crude oil and natural gas reserves have significantly impacted the market, and recently because of the…show more content… These companies are expected to continue to consolidate over the next five years, while smaller companies continue to enter the industry and provide specialized services.
Because wages make up a large portion of the industry’s costs, companies must ensure that effective cost-control systems are in place
Purchases account for only 12.3% of industry revenue because operators require few additional materials to provide advisory services. Companies purchase basic capital equipment including computers, software packages and other information to assist with assessments and reports. Purchases have remained stable as a proportion of industry revenue over the past five years. The Environmental Consulting industry is characterized by low depreciation costs because of the minimal amount of capital equipment required. Depreciation costs are estimated to account for only 1.9% of total industry revenue, and is limited to the upkeep and replacement of basic equipment such as computers and software..
AECOM is a global engineering firm that divides their operations into distinct business units including design and consulting services, construction services, and management services.
Table 1 - AECOM SWOT Analysis
Wide range of end user markets
Client base Litigations
Decline in order backlog