Download the 2011 OC’s LARGEST ENVIRONMENTAL CONSULTANTS list (pdf)
The largest environmental consultants operating in the county saw local billings rebound in 2010 despite sluggish construction and other economic challenges.
The county’s 30 largest companies combined grew revenue 7.4% to $576 million, according to this week’s Business Journal list. The list is based on billings for environmental work completed by the local offices of OC’s largest environmental consultants.
The return to growth came after a 12% drop in total billings in 2009 as consultants dealt with a virtual halt in construction and increased competition for government and hospital work.
Gainers, Decliners
Fourteen companies saw their local billings increase last year. Six saw declines from 2009. Eight saw double-digit growth. Five saw double-digit percentage drops.
The Business Journal provided estimates for nine companies on the list. San Francisco-based URS Corp., which held its No. 2 ranking, provided sales figures for 2010 but not for 2009.
The companies combined to post a decline of 1% in local employment to 4,619 people.
A consolidation at No. 4 Los Angeles-based Aecom Technology Corp.’s local operations was enough to drive the trend.
Thirteen of the companies added jobs in the past year. Seven cut positions. Three held steady. Figures for seven companies that didn’t provide employment figures are Business Journal estimates.
Denver-based CH2M Hill Cos.’ Santa Ana office led the rebound in billings with a 33% jump in 2010 to $146 million. That was the highest percentage increase of any company on the list.
CH2M changed its accounting practices in the last year to include revenue from joint ventures. The shift accounted for a portion of the increase. Other business lines also saw an uptick.
More demand was seen in land management sustainability, asset and environmental liability services, full-service consulting and sediment remediation, according to Kellie Freeman, CH2M’s vice president and area manager for Orange and Riverside counties.
The company also was buoyed by federal stimulus dollars from the American Recovery and Reinvestment Act.
“We’ve had a good year,” Freeman said.
The company dominates the list, accounting for 25% of combined billings in the county.
Without CH2M, environmental consultants here saw combined billings rise by less than 1% to $430 million.
CH2M saw local employment drop by more than 3% to 315 people.
No. 2 URS saw sales of $67 million in 2010. The Business Journal estimated 2009 sales of $70 million for the company’s Santa Ana office.
URS added 40 employees in the past year and employs 336 people here.
The local unit of Aecom, formerly P&D Consulting, moved up two spots to No. 4 with more than $33 million in billings.
Aecom saw a consolidation of work in Orange that resulted in a 14% drop in local employment to 536 people.
The company topped $34 million in revenue here in 2010, up 25% from a year earlier.
Joel Farrier, vice president and Southern California district manager of Aecom’s environmental division, said the realignment created new opportunities in transportation, water and federal government business.
“We’re providing better value for our clients,” Farrier said. “We created more of a one-stop shop.”
Aecom’s environmental business is broken down into three main segments. Federal contracts account for about 30%, local, state and other public jobs are 20%, and the remainder of work is from the private sector, Farrier said.
He doesn’t expect a quick or robust recovery for the industry.
“The economy is soft,” he said. “It takes a lot more work and focus and the best strategy to survive right now. It will continue to be a challenging economy.”
No. 22 Garden Grove-based Patriot Environmental Laboratory Services Inc. moved up four spots on the list after improving sales nearly 10% in 2010 to $7.6 million.
Patriot grew its staff by 8% to 66 people locally and expanded services beyond the insurance sector into property management and apartment developments.
“As a result of that we’ve been able to capture a larger base of clients,” said general manager Martin Kimble.
Patriot does asbestos, mold and bacteria investigations and sample analysis.
The company is planning on 20% revenue growth this year, according to Kimble. Patriot saw companywide sales of $7.9 million in 2010.
TRC
Deferred projects, permitting delays and dried up stimulus funds hurt local sales at No. 13 TRC Cos.
The Connecticut-based company saw sales drop 20.5% to $11.4 million.
“We’ve also seen funding curtailments, especially in the public sector,” said David Zarider, a senior vice president based in TRC’s Irvine office. “All those things added up.”
TRC’s local projects include designing the Interstate 405 widening in Seal Beach that added car pool lanes in each direction.
Zarider expects 2011 to be a better year, as new projects are under way and others are in the planning stages.
TRC’s work includes remediations, assessments and permitting support.
“We’re seeing a little more activity on the private side than public side,” Zarider said. “It just remains to be seen how budgetary constraints affect public sector funding.”
Download the 2011 OC’s LARGEST ENVIRONMENTAL CONSULTANTS list (pdf)
