John C. Fisher, Chief Operating Officer, T. Harris Environmental Management Inc.
If the experts are correct and we are indeed heading into a recession, the dynamics of environmental consulting could change significantly.
Whilst many consultants have experienced unprecedented growth over the past two or three years, we have also witnessed the birth and growth of many environmental consulting firms. This has led, in its turn, to an unprecedented demand for new graduates from environmental courses. However, the potential now exists for a slowing of the economy, which may lead to a weakening in demand for environmental consultants and, thus, newly graduated employees.
On a positive note, a weakening economy may lead to a sense of stability in the environmental consulting profession. Over the past few years there has been a tremendous amount of personnel turnover as some employees have exploited the vulnerability of their employers' needs for experienced staff by looking for other potential employment. This is attributable partly to corporate raiding by other consulting firms offering various opportunities.
While it is natural to experience movement of personnel in a strong economy, this can lead to higher consulting fees because demand for labour increases labour costs which is the most significant component of consulting fees. We also see a tendency for marginally trained technicians receiving compensation packages that do not reflect their experience or knowledge base.
The slowdown in proliferation of new consulting firms that have been established should lead to cost stability for our clients. In addition, clients will be able to properly assess the qualifications, capabilities and professionalism not only of these new firms, but also established firms who have experienced considerable change due to the factors noted above.
The ability of the client to be able to thoroughly analyze a consultant's qualifications should alleviate some of the frustration that these clients may be facing or have faced in the past. These include, but are not limited to choosing consultants with little history because established consultants were too busy to accept new projects or commitments.
It has been our continuing experience that close and continuous communication with clients is imperative if a strong relationship is to develop, especially during a recession.
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