Where the environmental market is heading – short term

Posted by admin on January 21st, 2009 filed in Carbon Trading

This interesting cartoon could apply to the environmental industry as well as Alex’ bank.  Robust earnings in the final quarter of 2008 and into the first weeks of January shouldn’t be confused with the long term effects of this economic downturn.  Budgets drawn up in the fat last days of 2007 will suddenly be replaced with stark new realities.  In my opinion, the timing of these problems will be related to the size of the company.  Smaller firms have already moved – cutting costs and settling in for a long winter’s night.  Bigger firms will be like battleships – harder to turn around.  Unfortunately, consultancies may find that the depth of cuts by the big firms is much greater than any estimates they may have had in mind.

Along the same lines, we have to expect a shift in the priorities of our clients.  While it may not be organic vegetables, carbon emissions will likely be on the platter of luxuries that are no longer a focus for US companies.  Additionally, the economic downturn will have a signifcant effect – reducing carbon footprints – just by virtue of reduction in hours (less power usage) and reductions in production.

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