Growing regulatory complexity, aging infrastructure, and increased outsourcing are driving demand for industrial services and special waste management.  Merger and acquisition activity is gaining momentum as market participants look to achieve cost advantages through scale, with strategic acquisitions offering diversification into complementary service areas and geographic markets.

The July 2016 edition of the Environmental Services Insider, documents key operating issues, consolidation trends, and market forces that are impacting growth, supported by findings from a widely responded to survey and interviews with leading executives and investors in the sector. “Refineries and chemical plants are facing more stringent regulation, and maintenance costs have climbed sharply. That is creating opportunities for the industrial cleaning market,” commented Andrew DeBusk, CEO of DeBusk Services Group, a participant in the report. “Oil and gas has a growing need for technical field services. It is a market segment under intense regulatory pressure,” added Ed Genovese, Chief Executive Officer of TAS Environmental Services, another report participant. Sustainability initiatives and tightening regulatory requirements are governing higher standards for waste management. “Today there is a lot more thought around decision trees for waste management,” Genovese said. “When there are opportunities for reuse or reclamation outside of incineration or landfill, it creates opportunities for companies like ours.” Companies are increasingly turning to experts to manage field service work, stimulating demand for industrial cleaning and in-plant opportunities to manage waste and logistics on-site.

The competitive landscape remains highly fragmented, and consolidation is accelerating. Seventy-five percent of respondents in the BGL survey anticipate a high level of acquisitions over the next five years, and nearly two-thirds expect to be buyers as the industry undergoes further consolidation. Industry maturation is a force behind consolidation as participants look to realize cost savings and synergies to remain competitive.

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