- Published: November 17, 2021
- Updated: November 17, 2021
- University / College: University of Bath
- Level: Secondary School
- Language: English
- Downloads: 31
Ameresco Inc. (AMRC) Founded in 2000, Ameresco Inc. is a company that majorly operates in North America and provides energy efficiency solutions. As a company, it operates in a dynamic industry that is involved in designing, developing, and engineering and times installation of projects that minimize energy, operations and maintenance costs to clients they serve. As the largest and independent energy services company in the region it operates and participate in energy projects in majorly the government, public, education and healthcare sectors.
There are many present and future environmental threats and opportunities that Ameresco Inc. as a company operates and the industry as a whole. Most notable threats are financial capacity of the company, rising cost of raw material and the global economy and high cost of investment and research. These are the threats that are currently present in both Ameresco Inc. and the industry they operate as a whole. These have possessed economic constraints to the firm and lowered profitability. However, there are opportunities too as the industry is experiencing reduced labor cost. In addition, there has been increased internal monetary assistance in the company and opportunities for venture capital. A significant portion of their total revenues is generated by our Canadian subsidiary, Ameresco Canada. Finally under economic threats, it is evident that future changes in exchange rate significantly between the Canadian dollar and the U. S. dollar could so much affect the company’s operating results as major revenues are dependent on the northern America.
The industry Ameresco Inc. operate is dynamic and competitive. The level of technology hence becomes a threat as new advancements in technology are required for better service delivery. As a company, Ameresco Inc. operates in a dynamic industry that is involved in designing, developing, and engineering and times installation of projects that minimizes energy, operations and maintenance costs to clients they serve and these are areas of concern should technology fail in future. The company also outsources various energy installation projects due to incapability to handle the specialized technological aspects and these is a threat.
Politically, different regulations affect the conduct of not only Ameresco Inc. business, but also the industry they operate in. State and federal legislation and regulations allow them to enter into Energy Saving Performance Contract (ESPCs) with government agencies in America. However, the challenge becomes the dissimilarities regulatory requirements for ESPCs in each state and even between agencies of the federal government. Additionally, the company depends in part on legislation and government regulations that support energy efficiency and at the same time renewable energy projects these are what enhance the economic feasibility of their energy efficiency services to their clients and renewable energy projects. These supports are more often than not complex and with a lot of bureaucratic red tape. This is a challenge to the Ameresco Inc. even in the future.
Social culturally, the company’s operations are affected by seasonality in construction cycles and patterns. This possesses a great threat, and this has presently affected the operating results and likely to be a future threat. Ameresco Inc. is subject to seasonal fluctuations and construction cycles, specifically in climates that experience much colder weather. This always happens during winters months, such as regions where massive projects are carried out and earn the company revenue. The social, cultural aspects have made individuals shun projects till the months that they are “ more comfortable” and this is a risk factor. However, there is hope as the company is structurally adjusting and engaging with all stakeholders in an attempt to avert these threats and raise profitability despite the threats (Sakmar, 2013). .
References
Ameresco Reports Second Quarter 2010 Financial Results.(Financial report). (2010, August 27). Energy Weekly News. Retrieved January 28, 2015, from http://www. highbeam. com/doc/1G1-235313867. html?
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Sakmar, S. L. (2013). Energy for the 21st century: Opportunities and challenges for liquefied natural gas (LNG). Cheltenham, UK: Edward Elgar.
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