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RE: Size of Market for P2 Services?


The first thing you learn in business school is that when you want to
measure the size of a market you need to define it first.  I beleive the
market for P2 services should have a broad definition since so many aspects
of new technology and process engineering result in P2.  Under this
definition, the market for P2 services would include 
        1.   vendors of cleaner process equipment  (e.g. powder paint systems)
        2.  vendors of cleaner materials (e.g. no-lead solder)
        3.  internal firm  personnel that make process improvements (both
manuf & env staff)
        4.  process improvement consultants (TQM, SPC, JIT, MRP,  etc)
        5.  government  technical assistance providers (e.g. NIST, TA
programs, etc)
        6.  traditional env. consultants offering P2 assistance

My guess would be that goups 1-3 have the lion share of the market and that
group 6 does the least amount of work. 

Another way to define the market is to look only at services and not count
technology and material vendors.  In that case, my guess is that groups 3
through 6 are in the right order in terms of market share.

If you want to stick to the conventional, environmental definition of P2,
then there are studies by market analysts on the size of different segments
of the environmental market (e.g. clean-up, compliance services, etc) --
these studies would give you a starting point (I remember finding one such
market analysis on the web but have since misplaced the site).  I cannot
imagine the conventional-environmental P2 market being very large -- if it
was wouldn't  the larger environmetnal consulting firms such as ADL, CDM,
Weston, etc. have P2 groups or offices?

There are numberous reasons that the markety for industrial P2 consulting
services has failed to materialize as many would have expected.  They include:
*  miss-named product -- as Mark Haverman suggests, P2 is a negative sell
where as process improvement is a positive sell
*  marketing process improvement services through the environmental
department is a back-door way of doing things -- these services should be
sold as process improvement directly to senior management
*  results are uncertain -- one cannot guarantee how much $ one can save or
waste one can reduce a priori
*  the market for general knowledge is to an extent taken up by state
technical assistance programs.  The market for detailed technical process
knowledge is mostly owned by equipment and material vendors or consultants
who specialize in a single industrial process (e.g. coatings or plating
sytems).  There isn't a whole lot of market share left environmental P2

Any commnets?  I am interested in the thoughts of others on this topic.....


PS:  This discussion is timely for me as I am preparing an article for P2
Review on this topic -- specifically looking at why main-line environmental
consultants are not heavily into P2.  

>I agree.  But can you offer any insight into why many would not be
>willing to pay?  Why are more industry not using free P2 programs and
>paying P2 consultants to show them where savings are in reducing their
>wastes.  Do they not trust the concept?  Is there not value in the
>Steve Hillenbrand
>Industrial Waste Reduction Engineer
>Synterprise Group, Division of Tennessee Valley Authority
>(423) 632-8489; (423) 632-3616 (fax)
>TVA IWR HomePage  http://www.tva.gov/orgs/iwr/iwrhome.htm
>>From: 	wjw5@psu.edu[SMTP:wjw5@psu.edu]
>>Sent: 	Monday, February 02, 1998 1:56 PM
>>To: 	Hillenbrand, Steve
>>Cc: 	p2tech@great-lakes.net
>>Subject: 	Re: Size of Market for P2 Services?
>>Virtually every manufacturer, though the majority would not (yet) be
>>willing to pay for these services.
>>>Does anyone have information on the size of the potential market for
>>>Pollution Prevention services?
>>>Industrial Waste Reduction Engineer
>>>Synterprise Group, Division of Tennessee Valley Authority
>>>(423) 632-8489; (423) 632-3616 (fax)
>>>TVA IWR HomePage  http://www.tva.gov/orgs/iwr/iwrhome.htm
>>Warren J. Weaver
>>227 W. Market St.
>>York, PA 17401
>>fax 717-854-0087
>>ph 717-848-6669
>>PENNTAP website:
>>           www.penntap.psu.edu
Timothy J. Greiner, MBA
Greiner Environmental
47R Englewood Rd.
Gloucester, MA  01930

tel:  978-525-2214
fax:  978-525-2247