The energy market will increase at just 5% per annum through 2017 in the USA, according to research was done by firm Verdantix.
“Based on the proprietary Critical Moments methodology, interviews with 500 energy and sustainability budget-holders and an analysis of more than 1,000 corporate initiatives, the model forecasts the US market will grow from $34.6 billion in 2012 to $43.6 billion in 2017.”
Lack of financal incentives for large corporations and low natural gas prices have a negative effect for growing energy market according to Patty Satkiewicz, Verdantix Industry Analyst and author of the report.
after massive research and analysis of more than 2,856 firms with $1 billion revenues in USA, and tracking money spent on 29 initiative grouped in energy management, environment, health & safety, sustainability innovation through sustainable transport, strategy and risk management, and human capital, the report highlights indicate:
In 2013 the oil and gas, utilities and retail sectors spent 42% on energy, EH&S and sustainability
Technology, industrial engineering and pharmaceuticals are all $2 billion energy markets
US Corporation will spend $13.9 billion on all aspects of energy management in 2013 compared with $13.1 billion on EH&S management, and $5.3 billion on sustainability strategy, branding and risk management.
“Hidden spending on employees tops $12 billion. Cash-strapped firms are keeping a lot of activity in-house resulting in a $12.1 billion wage bill for energy, environment and sustainability management. The consulting market represents $6.8 billion and program management $102 billion”.
Industry growth for most will be 4%-5% for 2012-2017 period with only a few industries increasing spending on energy aspect by more than 5%.
Only automotive (7%), food and beverage (6%) and chemicals (6%) are expected to grow above the overall trend.
‘Weather impacts in 2012 like Hurricane Sandy and the drought in the mid-West were wake up calls without being cash calls,’ commented David Metcalfe, Verdantix CEO.
‘For spending growth to reach double-digits the US economy would need to expand at more than 4% per annum, Congress would need to pass new regulations on energy efficiency and environmental compliance, and corporations would need to compete more intensively on sustainability innovation. We do not forecast that will happen.’