Environmental Professional Services Firms Numbers Decline by 50%
In Southeastern US Since 1996

Small Firms Hit Hardest By Declining Demand

Contact: Kay Schoenecker 952/831-2473 ext. 13
Cary Perket 858/488-4760

March 14, 2001 – For Immediate Release

Minneapolis, MN - Environmental Information Limited – a privately held business research firm – announced today the results of its latest research on the environmental services industry. The research is compiled from EI researchers updating the EI Environmental Services Database in the Southeastern United States. This is the largest and most comprehensive database on environmental services covering professional service firms, hazardous waste facilities, and municipal solid waste facilities.

The category of professional service firms includes consultants, laboratories, and other services. EI recent research found continuing decline in the number of professional service firms, a trend consistent with a market that is either mature or declining. About 10% of the professional services in business at the time of the last research in 1998 have now closed. That is less than previous surveys in 1998 and 1996, which have shown 15% and 24% declines.

"This reduction in the number of company closures is consistent with what was also observed in the previous West Central regional research," states EI researcher Kay Schoenecker. "Also consistent is the fact that the majority of closures occurred among firms with less than 25 employees. The closure of small firms has been a continual trend nationwide since we began analyzing the data in 1996."

Because of differences in the number of professional service firms participating in individual states, the difference between states can simply reflect normal statistical variations. Shown below are the percentages for the last three surveys. The regional trends of fewer closures since the 1996 survey is consistent with other regions.

The latest survey shows closure trends for 2000, and previous years in the Southeast:

% Closure of Environmental Service Firms, by State

"Each year we add new firms to the database who have not previously participated," stated Schoenecker, "so our database has actually been growing in size despite these closures". Schoenecker stated that there are 714 professional services firms in the current Southeast database. Nationwide, there are about 4500 professional services listed in the database. A complete report on the Southeast professional services can be viewed at www.envirobiz.com/reports/Database/reports.htm.

EI has not been maintaining a compilation of office closures among the larger firms, however they are very prevalent. "With all the acquisition and merger activity that has been occurring, it is to be expected that companies involved will consolidate their offices to gain efficiency," stated EI Senior Analyst Cary Perket. "However, one would also expect to see office closures happening here as firms decide the maturing and/or declining business opportunities do not justify a local presence."

The Environmental Services Database is offered on Envirobiz at (www.envirobiz.com/reports/Database/reports.htm). A regional Database of professional services is offered at $250 per year. In addition, specialty databases covering commercial municipal solid waste and commercial hazardous waste management are also available.

Environmental Information, Ltd. began surveying the environmental services sector in 1983. The individual surveys of each firm’s services/offerings are published in the EI Environmental Services Directory, which contains approximately 7,700 companies offering environmental services (companies include consultants, spill response firms, remediation firms, hazardous and municipal solid waste facilities, and laboratories) and require five – three inch binders. It is the largest and oldest ongoing directory of environmental services in North America.

Further information for these services is available on Envirobiz (www.envirobiz.com). Envirobiz is the leading environmental Internet site for proprietary database, information, newsletter, and research services for the environmental professional. Environmental Information Limited has provided proprietary subscription-based and custom research on the marketplace for environmental services and technology since 1983. For more information on Envirobiz or Environmental Information Research Services, call 952/831-2473, fax 952/831-6550, or e-mail ei@mr.net. Environmental Information Limited is located at 7301 Ohms Lane, Suite 460, Edina, MN 55439.

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