External Analysis

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Clean Harbors Inc. External Analysis

Clean Harbors was founded in 1980 and is the largest hazardous waste disposal company in North America. They have four business segments: technical services, field services, industrial services, and exploratory services. Field services provide environmental cleanup services and emergency response environmental assistance. Its services involve the cleanup and restoration of buildings, equipment, and sites that have been contaminated by exposure to hazardous materials. Projects include decontamination of commercial, educational, industrial, laboratory, research, and manufacturing facilities. Clean Harbors is expected to generate $410 million in revenues related to the environmental cleanup industry.

The industry Clean Harbors operates in is very competitive with high barriers to entry, low company concentration, and heavy regulation. The Remediation and Environmental Cleanup Services industry as a whole made about $19.3 billion in revenues in 2011. The largest firms within that industry are CH2M Hill Companies Ltd. and The Shaw Group Inc. with 9.3% and 9.1% of market shares respectively. Clean Harbors has a market share of about 1.7%.

Key external drivers of the remediation industry and Clean Harbors are: government consumption and investment, federal funding for homeland security, demand from construction, and the natural disaster index. Key success factors are: having a diverse range of clients, ability to alter mix of inputs in line with cost, ability to effectively manage risk, licenses, ability to compete on tender, and compliance with government regulation. Some other external factors which affect Clean Harbors which we considered in our research are political, economic, social, technological, environmental, and legal.

Political powers factor hugely into the company’s performance. In 1976 the U.S. federal government passed the Resources Conservation and Recovery Act (RCRA) and the Comprehensive...
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