Industry Spotlight: Remediation & Environmental Cleanup Services in the US

The remediation and environmental cleanup services industry in the United States is dedicated to restoring contaminated sites, removing hazardous materials, and ensuring environmental safety across a wide range of projects. Companies in this sector work on cleaning up buildings, soil, and groundwater, as well as abating toxic materials and undertaking mine reclamation activities. These services include federally funded cleanup projects, though they exclude direct federal agency budgets for their own cleanup operations. Clients span government agencies, private corporations, and industrial operators seeking compliance with environmental and safety regulations.

In recent years, steady growth in chemical manufacturing and waste production has increased the demand for remediation services. Anticipated growth in public sector funding—particularly for environmental initiatives—will further boost opportunities for industry operators. Higher federal investments in environmental cleanup and defense spending are expected to generate substantial demand for qualified remediation services. Regulatory oversight is extensive, with federal and state licensing requirements mandatory for operation. Agencies such as the Environmental Protection Agency (EPA) play a pivotal role, especially through programs like Superfund and Brownfields, which provide significant demand and resources for industry projects.

Financially, the industry generated $24.2 billion in revenue in 2024, with growth expected to remain steady through 2029 before moderating to around 0.7% annually. The sector employs nearly 94,000 workers, with employment projected to grow by 1.3% per year over the same period. There are approximately 5,141 businesses in operation, with each generating an average annual profit of about $442,900. Profit margins have averaged 9.4% from 2019 to 2024, with total industry profit over that period reaching $2.3 billion.

Industry performance is influenced by infrastructure investment, mining activity, and environmental regulation. The Biden administration’s Infrastructure Investment and Jobs Act has allocated $55 billion to drinking water quality improvements and $21 billion for Superfund and Brownfield site cleanups, while the Inflation Reduction Act further expands funding for air and water quality projects. These initiatives, alongside large and often lucrative government contracts, are expected to bolster revenue and profit growth.

The sector’s prospects are also tied to developments in the energy market. Increased domestic oil and gas production, uncertainty in global energy markets, and the decommissioning of nuclear power reactors create steady demand for cleanup services. While the future of nuclear energy remains uncertain, decommissioning activities represent a growth opportunity for many firms in this space.

Looking ahead, remediation and environmental cleanup companies are well-positioned to benefit from both public and private sector demand, particularly as environmental regulations tighten and sustainability goals expand. Businesses that secure government contracts, invest in compliance capabilities, and maintain strong technical expertise will be best positioned to capture opportunities. Partnering with advisory firms like Blue Sky Exit Planning can help operators benchmark their performance and plan for long-term, sustainable growth.

For a deeper dive into the key takeaways and to see how your business compares to industry benchmarks, contact Joe at Joe@blueskyexitplanning.com.

Citation:Govdysh, A. (2025). 23 Remediation & Environmental Cleanup Services in the U.S. IBISWorld Industry Reports. https://my.ibisworld.com/

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