Survival in many industries today, including the environmental service industry, depends on being prepared for new opportunities. Consider that in 1993, had you invested $100 in the Russell 2000, today your return would be $174. But if you had invested your $100 in the environmental services industry, you would have $54 today – hardly a good return on your investment. Clearly, the environmental services industry has not done well in the market as an industry. It is, however, an industry in transition that employs 1.3 million people. More than anything else, the ability to change and finding out what you need to do to change is critically important to your company’s future success.

Circular Economy Vs. Linear Economy

In the late 80s and early 90s, the environmental services industry was regulatory driven. Now, however, the industry is focusing more on a circular economy. While there are still regulations, the industry is going more in the direction of commercial property redevelopment and Brownfields. The increased awareness of contaminated land, pollution prevention and taking a more proactive approach are features of the changing face of the industry.

Partnering With Clients

Survival in this new market will depend to a great extent on your ability to partner with your clients, helping them solve their environmental problems. Adaptive change is the key to survival. What are you doing organizationally to take advantage of today’s hot areas for opportunities?

Important Issues

To ensure that you’re prepared to adapt to change and partner with your clients, there are some important issues you’ll want to keep in mind. These issues will be explored in greater depth in this issue. In brief, they include:

• Business Continuity: A true risk management issue for both you and your clients. You can learn to take an important role in helping your clients with their planning.
• Performance Engineering: How you select and train people will contribute to your success. Currently 5 percent of industry revenue is spent on training, i.e., approximately $100 million a year. Are you getting the best training for your money?
• Contract Management: A solid contract can help you to minimize your risk.
• Changing Role of Environmental Service firms: Clients want firms to offer strategic approaches to help them to achieve their environmental management and business goals.
• Merger & Acquisition will continue to drive the industry. You’ll probably have to make decisions in this area, so you’ll want to know the options.
• Quality Service. We have to shift from meeting customer expectations to exceeding them.

Opportunities For You

Attendees at our Second Annual Environmental Services Business Council have firms with revenues between $400,000 and $2 million. While the environmental services industry is driven by the top 20 to 50 industries, there nevertheless is value, need and opportunities for everyone in the industry – especially for those prepared to embrace change.

About XL Environmental

XL Environmental, specializes in the integration of environmental insurance, risk control and claims administration. We are committed to providing you with more than an insurance policy. You get value-added resources to help you minimize your risk and improve your business, such as risk control services and the Environmental Services Business Council. Customer excellence is at the heart of what we do, and we want to build on it by helping you prepare for the opportunities that await you in the changing environmental services industry.