EBJ News for April 15, 2020- Environmental Industry During the Pandemic
EBJ® News for April 15, 2020- The following section highlights the latest stories in the Environmental Industry. Including highlights of how companies are handling the pandemic through salary reductions, acquisitions and more. Also featuring information on how COVID-19 impacts our environment.
Image source: www.greenpeace.org
Acquisitions strengthen WSP’s environmental platform in FY19
WSP (Montreal, Canada) announced revenues and net revenues in FY2019 of C$8.9 billion and C$6.9 billion, up 12.7% and 14.4%, respectively compared to 2018. Organic growth in net revenues stood at 3.5%. WSP’s Environment market sector contributed 11% of total revenue, generating C$989 million in 2019 compared to C$835 million in 2018. Eight acquisitions during the fiscal year added approximately 2,000 employees of which 1,470 joined WSP’s Environment platform, one of WSP’s key expansion areas with approximately 22% growth since 2018, according to Alexandre L’Heureux, president and CEO. Acquisitions included U.S. environmental consulting firm Ecology and Environment Inc. with 775 employees for approximately US$65 million plus a special dividend of approximately US$2.2 million; and Orbicon A/S, a 500-employee Danish environmental consulting firm. Since the end of the year, in January 2020, WSP has acquired LT Environmental Inc., a 140-employee environmental consulting firm based in Colorado.
U.S. solar market grows 23% in 2019 despite tariffs
Solar accounted for 40% of all new electric generating capacity in the United States in 2019, its highest share ever and more than any other source of electricity, with 13.3 gigawatts (GW) installed, according to the Solar Energy Industries Assn. (SEIA) and Wood Mackenzie. The U.S. Solar Market Insight 2019 Year-in-Review report found that despite policy challenges and a second year of tariffs, the U.S. solar market grew by 23% from 2018. Total installed PV capacity in the U.S. was projected to rise by 47% in 2020 with nearly 20 GW of new installations, and each of the next two years were expected to be the largest on record for the U.S. solar industry. However, the impact of Covid-19 has not yet been incorporated into forecasts.
ACEC tracks business response to coronavirus
The American Council of Engineering Companies (ACEC) is tracking response to Covid-19 through a series of surveys. “Wave 3,” released April 2, found still very few organizations (6%) reporting problems with public clients as a result of protective measures conflicting with contract terms. However, there was an increase in the percentage of firms reporting delays in RFPs/RFQs or awards due to Covid-19 at 45%, up from 40% in Wave 2 and 24% in Wave 1. The percentage of firms reporting project delays or cancellations continued to rise to 70%, up from 58% in Wave 2 and 44% in Wave 1. More firms reported assistance from their creditors compared to Wave 2. Nonetheless, a majority of firms (72%) still reported they had not received or don’t need assistance. More firms expected to take measures to shore up finances in the coming 30 days, with 29% implementing hiring freezes and 34% expecting to do so.
AECOM execs reduce salaries to help weather Covid-19 impact
AECOM (Los Angeles, Calif.) announced it has conducted “a rigorous bottom-up review of the impact of coronavirus at a client, project and office level under multiple scenarios and different durations of virus impacts.” Immediate actions to mitigate financial impacts include a temporary 20% reduction in salaries among AECOM’s board of directors, executive leadership team and other senior leaders. Nearly 90% of the firm’s design team in the Americas is now working remotely. AECOM has also been selected by U.S. federal and state government agencies to assist in the coronavirus crisis, “including several substantial design and program management projects” for emergency triage hospitals on the East Coast. AECOM noted it has a strong financial foundation and substantial liquidity, reflecting proceeds from the recent sale of its Management Services business for approximately $2.4 billion.
Mishandled decontamination could worsen pandemic
Environmental Consultants (Orlando, Fla.), an environmental assessment and consulting firm, has warned that relying on organizations with little to no experience dealing with decontamination emergencies may not only slow progress in remediating the coronavirus but actually impede it and put businesses at risk. Robert Barton, Environmental Consultants’ director of operations, said he is concerned when he sees janitorial companies without the appropriate and necessary specialized personal protective equipment (PPE), certifications, and experience, being tasked with cleanups they’re not trained or qualified to handle. “PPE dress out is just one of the things we are generally seeing mishandled during this Covid-19 crisis,” Barton said. “We urge organizations to enlist the support of environmental experts and safety directors to help prevent the worsening of this pandemic…. It is our distinct belief that getting the job done right the first time is essential.”
A/E leaders report business trends during lock-down
General sentiment among architectural and engineering (A/E) leadership teams was more upbeat than the prior week with the initiation of PPP loans and indications that the pandemic may be reaching peak levels, according to Morrissey Goodale’s A/E Coronavirus Impact Bulletin on April 13. Firms reported a ramp up in VA hospital work and surging demand to repurpose convention centers, hotels, etc. into hospitals. In anticipation of federal stimulus funding, State DOTs and municipal agencies were accelerating design projects. However, firms working in entertainment and hospitality were hearing ‘pencils down’ on projects. Multiple firms reported utilization rates were way up under remote working models, while connecting “virtually” with clients is now standard procedure. Private equity buyers are seeing this period as a buying opportunity and still looking to make offers and close deals to take advantage of the recovery.
Navy awards environmental services contract in Guam
Landscape Management Systems Inc. (Tumon, Guam) has been awarded $25 million for an indefinite-delivery/indefinite-quantity contract for environmental services to handle hazardous waste, hazardous material and other regulated waste and spill response in Guam. Work is expected to be complete by April 2021. Naval Facilities Engineering Command, Marianas, Guam, is the contractor.
Helping Hands wins Army contract for healthcare environmental cleaning
Helping Hands Service Inc. (HHI, San Antonio, Texas) has been awarded an $84.5 million contract for healthcare environmental cleaning services by the U.S. Army Health Contracting Activity, San Antonio, Texas. Completion is slated for April 2025. HHI is a non-profit company that offers cleaning services to customers in need; its employees include those with disabilities and special needs. HHI maintains a Certified Healthcare Environmental Services Professional (CHESP) credential.
Cardno supports USAFE on environmental services contract
Cardno (Brisbane, Australia) announced it has been selected by the U.S. Air Force Europe 764th Specialized Contracting Squadron as one of six consulting firms for the Environmental Services Contract II (ESC II). The ESC II provides for environmental services within United States European Command and United States Africa Command Areas of Operation and includes a broad range of environmental compliance and environmental impact analysis services, as well as environmental construction, repair and demolition work to include remediation, restoration, and abatement. The ID/IQ contract ceiling is $90 million with a base period of 10 years.
Widespread flooding predicted in spring 2020
NOAA forecasters predict widespread flooding in spring 2020 but do not expect it to be as severe or prolonged overall as the historic floods in 2019. Major to moderate flooding is likely in 23 states from the Northern Plains south to the Gulf Coast, with the most significant flood potential in parts of North Dakota, South Dakota and Minnesota. The greatest risk for major and moderate flood conditions includes the upper and middle Mississippi River basins, the Missouri River basin and the Red River of the North. Drought conditions are expected to expand throughout California in the months ahead and are likely to persist in the central and southern Rocky Mountains, the southern Plains, southern Texas, and portions of the Pacific Northwest.
Mutated enzyme could dramatically improve PET recycling
Carbios (Clermont-Ferrand, France) is speeding up recycling using a novel enzyme that can biologically breakdown and recycle polyethylene terephthalate (PET) plastic waste. The pilot-stage technology can improve the degradation yield of PET waste to 90% in 10 hours, according to the company. Significantly, the resulting purified monomers have the same properties as those made from petrochemical feedstock so they can be reused to make bottles. Existing recycling technology faces technical challenges and produces recycled plastic suitable only for certain applications. The original enzyme was discovered in a compost leaf pile and mutations introduced to improve its ability to breakdown PET plastic. Carbios has partnered with Pepsi, Nestlé and L’Oréal to advance R&D. The new enzyme is featured on the cover of the April 9, 2020 edition of Nature.
Harsco acquires ESOL from Stericycle
Harsco Corporation (Camp Hill, Pa.) has completed the acquisition of the Environmental Solutions business (ESOL) of Stericycle Inc. (Bannockburn, Ill.) for approximately $462.5 million in cash as Harsco transforms into a “global, single-thesis environmental solutions platform.” More than 85% of Harsco’s total revenue is now expected to come from environmental solutions and services. The deal will not impact Stericycle’s medical waste and secure information destruction businesses. ESOL is Stericycle’s sixth divestiture over the last 15 months as it focuses on its core business and pays down debt. Harsco said it now owns a network of 88 waste management sites across the United States, including 19 federally permitted treatment, storage and disposal facilities.
Bluestone Environmental joins GES
Groundwater & Environmental Services (GES, Wall Township, N.J.) has acquired Bluestone Environmental Services LLC (Honesdale, Pa.), expanding its environmental consulting and remediation services in New Jersey and eventually across other operations. According to Ed Van Woudenberg, CEO of GES, “This is another step forward toward growing our core services for the future with the additional key staff and new clients.” Bluestone was founded in 2011 to provide environmental services to the Mid-Atlantic Region. Offerings include field service/remediation, storage tank services, industrial cleaning, industrial hygiene, and waterway dredging. The transaction adds to GES’ core services of subsurface investigation and remediation, environmental permitting, and terminal operations compliance services.
Tetra Tech acquires Segue Technologies in high-end IT
Tetra Tech Inc. (Pasadena, Calif.) has acquired Segue Technologies Inc. (Arlington, Va.), an IT and management consulting firm. “The integration of high-end technology applications with our subject matter expertise in water, environment and sustainable infrastructure continues to expand Tetra Tech’s ability to provide innovative solutions for our clients,” said Dan Batrack, Tetra Tech chairman and CEO. “Segue also brings additional capabilities with system modernization tools that are critical for our Department of Defense customers.” Segue has more than 200 employees and is joining Tetra Tech’s Government Services Group.
Click Here to return to the EBJ® News home page and read about the latest stories.
