UK marine enviro services grew by 4.4% in 2009/10

'Recession proof' market saw growth curtailed, but not reversed

The UK marine environmental services sector is one of the few areas within the wider environmental services market that has continued to grow since economic slowdown set in in 2008. Marine environmental services grew by 4.4% to reach a value of £131.8 million during the year ending 31 March 2010, according to new research published by Environment Analyst.

This is a far more positive performance than the 5.1% decline experienced by the UK environmental consultancy sector during 2009 (Environment Analyst 10-Jun-10).

Although marine environmental services have proven far more resilient to recession than many land-based environmental disciplines, even this 'boom' market has seen its growth restrained due to a range of factors, including macroeconomic weaknesses. Indeed, a growth rate of 4.4% represents a significant slowing, compared to an average compound annual growth rate of 12.5% for the four years between 2004/5 and 2008/09.

“Project uncertainty during the recession – particularly in the oil and gas sector – and reduced demand from the water industry at the end of its AMP 4 investment cycle contributed to the slowdown,” states research editor, Liz Trew. “Spending in the public sector was also impacted by the impending cuts and change of government.”

The importance of public sector spending as a driver behind UK marine environmental services should not be underestimated. In 2009/10, public sector funding accounted for half of the sector's revenue. However, private sector spending has been growing at a faster rate and this trend looks set to continue.

These and other key data form part of Environment Analyst's assessment of the UK marine environmental services market, Marine Environmental Services 2011, a 92 page report containing 30 figures and 13 in-depth corporate profiles. Profiles focus on: ABPmer, APEM, Atkins, Cefas, Entec UK (Amec Entec), Environ, ERT Scotland, Gardline Environmental, HR Wallingford, Intertek-Metoc, Royal Haskoning, RSK and Thomson/Unicomarine.

UK marine environmental services are expected to continue to outperform the wider environmental consulting sector over the coming five years, according to the report, with growth coming from clients in the traditional oil and gas sector as well as those in the emerging offshore renewables industry. However, uncertainty about the impact of government spending cuts and the scale of funds available for marine renewables means that there remain considerable risks facing those active in this rapidly-developing market.

• Marine Environmental Services 2011