1 Porters Five Forces Analysis
1.1 Threat of New Entrants
The threat that existing firms face from new entrants depends on the ease with which new firms can join the industry. There are certain barriers to entry in the soil PFAS remediation industry. The core competitiveness of the soil remediation industry is its technical level. Technology research and development depends on many factors such as the company’s long-term experience accumulation, talent reserves, testing facilities, and intellectual property rights.
Basically every soil remediation project is a non-standardized product and requires systematic and comprehensive services based on the hydrogeological conditions, types of pollutants, distribution of pollutants, degree of pollution, and pollution prevention and control requirements of the specific site. Therefore, in the soil PFAS remediation industry, new entrants need more investment, technological innovation and experience accumulation.
1.2 Bargaining Power of Suppliers
The bargaining power of suppliers refers to the ability of suppliers to obtain better prices when existing companies purchase supplies from suppliers. The upstream of the soil PFAS remediation industry includes the R&D and design of related chemicals and equipment, pharmaceutical manufacturers, equipment suppliers and soil pollution monitors, providing equipment and technical support for soil PFAS remediation. The market concentration in the upstream industry is relatively high, and suppliers have strong bargaining power.
1.3 Bargaining Power of Buyers
Buyer’s bargaining power refers to the pressure that customers can put on suppliers to lower product prices, improve product quality, or provide better customer service. The downstream industry is usually the owner of the contaminated site or the environmental protection authority, and the soil PFAS remediation project is proposed and funded by the downstream enterprise. Buyers of soil PFAS remediation have strong bargaining power.
1.4 Threat of Substitutes
The threat of substitutes is the availability of other products that customers can purchase from outside the industry. The competitive structure of an industry is threatened when substitute products exist that offer a reasonably close match of benefits at competitive prices. In this case, the price point is constrained by the price of substitutes, thereby limiting the amount of profit that can be generated within the industry.
Soil PFAS remediation is a technology and service that targets PFAS contamination present in soil. PFAS are a class of highly fluorinated compounds that include perfluorooctane sulfonate (PFOS), perfluorooctanoic acid (PFOA), and many others with a variety of industrial and consumer uses.
In recent years, PFAS has been confirmed to cause certain harm to the environment and human health. PFAS is mobile underground and is highly resistant to natural degradation processes. Therefore, soil PFAS remediation is very important. Due to the specific role of soil PFAS remediation, there is no alternative competition for soil PFAS remediation.
1.5 Competitive Rivalry
Competitive rivalry is a measure of the extent of competition among existing firms. Intense rivalry can limit profits and lead to competitive moves, including price cutting, increased advertising expenditures, or spending on service/product improvements and innovation.
The soil PFAS remediation industry also faces fierce competition. As countries around the world pay more and more attention to soil pollution, the potential huge market has prompted existing companies in the industry to continuously improve their competitiveness and attract more powerful companies to enter the industry.
2 Major Downstream Buyers of Soil PFAS Remediation with Contact Information
Key customers of Soil PFAS Remediation include Winnebago Landfill Company, Waste Management, Inc., Veolia, Bechtel Corporation, Fluor Corporation, Vinci.
Table Major Downstream Buyers of Soil PFAS Remediation with Contact Information
Downstream Buyers | Contact Information | Regions |
Winnebago Landfill Company | Web: www.wasteconnections.com Tel: +1 815-874-4806 Add: 8403 Lindenwood Rd, Rockford, IL 61109, United States | North America |
Waste Management, Inc. | Web: www.wm.com Tel: (713) 512-6200 Add: 800 Capitol Street, Suite 3000, Houston, Texas 77002 | North America |
Veolia | Web: www.veolia.com Tel: +33 (0)1 85 57 70 00 Add: 21, rue la Boétie – 75008 Paris, France | Europe |
Bechtel Corporation | Web: www.bechtel.com Tel: +1 571-392-6300 Add: 12011 Sunset Hills Road, Reston, VA 20190-5918 USA | North America |
Fluor Corporation | Web: www.fluor.com Tel: +1.469.398.7000 Add: 6700 Las Colinas Blvd, Irving, TX 75039, U.S. | North America |
Vinci | Web: www.vinci.com Tel: +33 1 57 98 61 00 Add: 1973 bd de la Défense, CS 10268, 92757 Nanterre Cedex – France | Europe |
3 Soil PFAS Remediation Industry News
Some of the main news in the industry are as follows:
1. Montrose Environmental Group Acquires Environmental Alliance, Inc., Expanding Consulting and Engineering Services in the Mid-Atlantic
2. Republic Services Completes Acquisition of US Ecology
3. Clean Harbors Completes Acquisition of HydroChemPSC
4. Ventia completes acquisition of major asset management company
Table Industry News by Regions
Item | Description |
Montrose Environmental Group Acquires Environmental Alliance, Inc., Expanding Consulting and Engineering Services in the Mid-Atlantic February 10, 2023 |
EAI’s senior team, including Vice Presidents Paul Miller, Joseph Rossi and Michael Vanderslice, will continue with Montrose and will join the Environmental Consulting & Engineering Division led by Senior Vice President Sean Rome, which reports into the Company’s Remediation and Reuse segment. Terms of the transaction were not disclosed. EAI has completed thousands of remediation and environmental consulting projects, and maintains offices in Wilmington, Delaware; Edison, New Jersey; Glen Burnie, Maryland; and Richmond, Virginia. |
Republic Services Completes Acquisition of US Ecology May 2, 2022 | Republic Services, Inc. announced today that it completed its acquisition of all outstanding shares of US Ecology, Inc. on May 2, 2022. The previously announced purchase price of $48 per share in cash represents a total value of $2.2 billion including debt net of cash acquired. US Ecology stock will be delisted from the NASDAQ Global Select Market. This transaction expands Republic’s environmental solutions footprint across the U.S. and Canada and provides vertically integrated capabilities for its environmental solutions business. It also provides a platform for accelerated growth, including cross-selling revenue opportunity and additional tuck-in acquisitions. |
Clean Harbors Completes Acquisition of HydroChemPSC October 8, 2021 |
Clean Harbors purchased HPC from an affiliate of Littlejohn & Co., LLC, for $1.25 billion in an all-cash transaction. The acquisition was financed through a combination of existing cash and proceeds from Clean Harbors’ new 2021 Incremental Term Loan financing that was completed in conjunction with the transaction. The 2021 Incremental Term Loans were issued in the aggregate principal amount of $1.0 billion at a rate of Libor +200 basis points and will become due in 2028. Clean Harbors expects to achieve cost synergies of $40 million from the acquisition after the first full year of operations, through eliminating redundant corporate expenses and capturing efficiencies in customer service, transportation, branch network, asset rentals, vehicle and tank refurbishment, subcontracting and procurement. |
Ventia completes acquisition of major asset management company August 7, 2020 | Major maintenance and asset management company Ventia has completed its acquisition of Broadspectrum, from Ferrovial S.A. Broadspectrum is a management company that designs, funds, constructs, operates, and maintains major projects and infrastructure assets across diverse industries. |
4 Soil PFAS Remediation Industry Policies
Some of the main policies in the industry are as follows:
Germany: Federal Soil Protection Act.
China: Soil Pollution Prevention and Control Law of the People’s Republic of China
China: Soil Pollution Prevention and Control Action Plan
Table Industry Policies by Regions
Item | Description |
Federal Soil Protection Act. Germany |
Furthermore, the text deals with the following matters: duty to avert damage to the soil, reduction of damage, adding to or removing materials from the soil, duty to take preventive measures, estimates of danger and inquiry orders. Part 4 establishes principles on sound agricultural use of soil. |
Soil Pollution Prevention and Control Law of the People’s Republic of China China | This law is enacted in order to protect and improve the ecological environment, prevent and control soil pollution, protect public health, promote the sustainable use of soil resources, promote the construction of ecological civilization, and promote sustainable economic and social development. |
Soil Pollution Prevention and Control Action Plan China |
By 2030, the national soil environmental quality will be stable and improving, the soil environmental safety of agricultural land and construction land will be effectively guaranteed, and soil environmental risks will be comprehensively controlled. By the middle of this century, soil environmental quality will be comprehensively improved and the ecosystem will achieve a virtuous cycle. |
