Snapping a two-year revenue losing streak, ENRs Top 200 environmental firms bounced back in 2004. The firms registered $33 billion of environmental work overall in the 10th annual survey, a 5% increase over 2003. Several firms predicted in last years report that the 2004 revenue numbers would be positive. There was a sound basis for their optimismnearly half reported an increased backlog.
This years backlog numbers signal that the rally can be sustained; 106 firms reported increased orders compared to 97 last year. Not surprisingly, handling the added work requires more people. Only 16 of the Top 200 reported work force reduction in 2004. The year before, 83 companies jettisoned more employees than they hired. Even as staffs expand, however, margins appear to be getting thinner. More than two-thirds of the firms say they are profitable, about the same as last year. But the 5.4% margin is down half a percentage point.