The markets for environmental management services and property and plant support services are outstripping general economic growth in all the countries in which L&T operates. L&T’s markets are primarily low-cyclical in nature, but major changes in economic development will affect those markets, too.
Increasingly efficient recovery of waste materials
The growth of our environmental services business is fuelled by increasingly strict environmental regulations, changes in attitude, and the rising price of raw materials and energy in the long term. Actions taken to curb climate change place higher demands on energy and material efficiency, and environmental management will play an increasingly strong role in fighting climate change in the future.
Growing use of renewable fuels
The European Union wants to raise renewable energy’s proportion of energy end use. At the same time, emissions should be significantly reduced. Waste management, recycling and the recovery of waste as energy can all contribute to an increase in the use of renewable energy and a reduction in carbon dioxide emissions. In the future, wood-based biofuels and recovered fuels will constitute an important replacement for fossil fuels in energy production.
Outsourcing and networking expand support services markets
Trends boosting our support services market include customers' intent to focus on their core business and enhance support services procurement by buying extensive service packages, and the change taking place in the public sector, where service producers are now becoming service users. Companies that produce support services are also expected to invest in service development.
Availability of competent personnel to be secured
In labour-intensive service industries, competition for skilled workforce will be increasingly fierce as demand for services grows and the number of working-age people decreases. Human resources management will be extremely important, forcing service companies to invest in effective recruitment and employee working capacity management.