Abstract
This study is an addendum to the National Overview study published for U.S. Soil and Groundwater Remediation Technology Markets. The study includes state-wise information on statutory authorities, number and status of sites, contaminants of concern, top polluting industries and regional trends.
Offering Value-added Propositions May be Vital to Finalizing Contracts
After a few years of sluggish growth, the remediation market is witnessing healthy activity. Along with the huge amount of federal dollars being spent on cleanups, the private sector has been actively pursuing remediation and redevelopment. While the demand for innovative and cost-effective technologies has raised the bar for remediation contractors, participants are offering value for money propositions as incentives to seal contracts. Schemes such as guaranteed fixed price remediation (GFPR) give clients more freedom and take away a considerable amount of risks involved in undertaking cleanups. While a number of contractors are using such incentives to retain and expand client base, a shift toward corporate clients buying insurance coverage for cleanups is putting remediators at larger risks.
This Frost & Sullivan research service analyzes the U.S. soil and groundwater remediation technology markets -- by analysis regions 1 to 5, besides examining the remediation market across the said regions. It further lists the state specific regulatory programs across these regions and analyzes market participants.
Booming Property Prices Increase Focus on Remediation and Redevelopment
With ever-increasing commercialization, there has been a sharp decline in availability of quality real estate, which is resulting in soaring land prices. To guarantee wider land availability, the federal government is introducing tax benefits and incentives on remediation and redevelopment projects. Even with faster pace of redevelopment, there will still be a huge number of sites to clear over the next decade, and this will ensure continuous federal expenditure on remediation and redevelopment.
In addition, the threat of new emerging contaminants is driving the need for better cleanup technologies and more stringent regulations. While bigger companies have the resources and financial backup to undertake most kinds of remediation projects, small and medium-sized regional companies have the advantage of local presence. "Since, in some cases, it is difficult for bigger companies to relocate resources to certain sites, regional contractors are better positioned to bag these contracts." notes the analyst of this research. "Further, the government administration is providing incentives and benefits to small-and medium-sized firms and giving them preference in federal contracts."
Increased Demand for Cleanups May Ensure Strong Market Growth
With the economy recovering, there is a shift in focus to issues such as remediation, rising industrial and residential property prices, and stringent state public health goals. While this is prompting greater stakeholder pressure for cleanups, state agencies are heeding this demand and implementing more meaningful programs with a view to diminishing discrepancies between the state and federal governments.
The Environmental Protection Agency (EPA) regions 1 to 5 are considered a more active market for remedial work, contributing to nearly 60 percent of market revenue. "Despite the seemingly diminished federal funding for programs such as Superfund, the Department of Defense (DOD), and the Department of Energy (DOE), remediation work is picking up in these segments," says the analyst. "With remediation contractors adopting innovative methods of treatment, large-scale Brownfield redevelopments and private sector cleanups may contribute to sustained market growth."
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