Orange County’s environmental consulting companies saw higher billings in 2008 that could prove harder to come by this year.
Buoyed by government and commercial work, the 30 largest companies here reported an 8% jump in 2008 billings to $544 million, according to this week’s Business Journal’s list.
But in what could be a leading indicator for the group, local employment fell 6% to 5,118 people in the past year.
The companies could have a tougher time this year as some of 2008’s lingering commercial projects fade and government work tapers off amid California’s financial crisis.
“There have been some cutbacks on projects due to the credit market and budget constraints and everyone is impacted by it,” said Bob Ohlund, vice president of environmental infrastructure at No. 16 Stantec Consulting Inc., which grew its local billings 27% to $11 million.
The list ranks environmental consulting companies based on billings generated from their OC offices.
Sixteen companies on the list reported gains. Four companies saw declines. Ten companies declined to disclose local billings and are Business Journal estimates.
The companies help clients with air and water quality permits, industrial cleanup and sustainable design,which can incor-porate storm water and waste management and the use of recycled materials in construction.
Changing Times
For the past few years, the housing and commercial real estate boom drove work for environmental consultants. More recently, government projects such as the expansion and beautification of roads and maintenance on major freeways, ports and airports, has kept them busy.
But companies say that the recession and state budget constraints have squeezed the number of projects. Competition has become a lot fiercer, they say.
Even so, work still is expected. Southern California’s depleting water supply is helping environmental consultants generate work, according to Stantec’s Ohlund.
“Real issues still exist in a bad economy,” he said. “Even in a recession, people still need water.”
Stantec, based in Edmonton, Alberta, saw the employee headcount at its Irvine office decline 16% to 150 workers.
No. 1 Denver-based CH2M Hill Cos. in Santa Ana also is seeing an uptick in work related to water projects, according to
John Lovenburg, vice president of site remediation.
The company grew its local billings 13% to $111 million. The company’s local headcount declined 12% to 297 workers.
CH2M Hill, which works with the Orange County Sanitation District, is helping clients find uses for reclaimed water, waste water and storm water by irrigating freeway landscapes and other uses, he said.
The company also is keeping busy with waste management projects and renewable energy projects for solar and wind energy, Lovenburg said.
CH2M Hill is working with private and government waste agencies to help develop waste transfer systems where waste is sorted into recyclable waste streams. The company also is helping companies convert food waste into biofuel and helping landfills separate methane from natural gas and turn it into energy.
The green business movement is helping the environmental consulting industry, Lovenburg said.
“There are real pressures on companies now to integrate sustainability into their businesses,” he said. “Despite the overall economy there’s so much focus on good environmental liabilities that I think it’s helping our industry weather the storm a little better than other sectors.”
CH2M Hill plans to get through the recession by keeping its practice areas diverse and expanding overseas, Lovenburg said. The company is working on projects in Europe, Asia and the Middle East.
No. 23 Psomas in Costa Mesa, which grew its local billings 15% to $7.5 million, is keeping busy with public work. The Los Angeles-based company’s local employment declined 5% to 127 workers.
The company is working on a few projects that are going after Leadership in Energy and Environmental Design, or LEED, certification, including the San Bernardino Municipal Court and the Pomona Valley Hospital Medical Center.
The company also is working on helping the Advanced Education Technology Education Park in Tustin get LEED certification.
Psomas, along with other agencies, is helping developing countries form green building councils that can educate engin-eers and consultants on sustainability in development.
The biggest percentage gainer on the list was newcomer No. 30 Soil Pacific Inc. of Orange, which grew its local billings 80% to $4.5 million. The company lost one employee and now has 12 workers.
The company has kept busy in the past year doing cleanup work at commercial sites including car washes across Southern California.
Gains, Losses
Other companies that posted large billings gains include No. 5 AMEC Geomatrix Inc. in Newport Beach, up 20% to $27.6 million; No. 9 Shaw Environmental & Infrastructure Inc. in Irvine, up 29% to $18 million; No. 6 GeoSyntec Consultants Inc., up 57% to $24 million; and No. 15. Fluor Corp, up 30% to $11.5 million.
In 2007, Fluor saw a 478% growth in local billings to $8.9 million, largely from power plant and oil refinery work. The company also saw its workers increase by 15% in 2007 to 2,270 workers. This year, Fluor lost 70 local workers, a 3% decline to 2,200.
AMEC, formerly known as Geomatrix Consultants, saw its local employment stay flat for the year at 90 workers.
Shaw Environmental’s employment also was flat at 80 workers.
The biggest decliner by dollar amount this year was No. 3 TRC Cos., which saw its billings drop 5.4% to $35 million.
No. 19 Bureau Veritas, No. 27 BonTerra Consulting and No. 28 Glenn Lukos As-sociates Inc. also saw declines.
Bureau Veritas saw a nearly 16% drop in local billings to $9.7 million. The company saw a 17% drop in local workers to 80 employees.
BonTerra saw its billings decrease 3% to $6 million, while its worker count increased 12% to 38.
Glenn Lukos’ local billings dropped nearly 22% to $5.9 million. Its local headcount stayed flat at 25 workers.
