Government Industry Opportunities

February 6, 2012
Industry Intelligence from First Research, a division of Hoover's (a D&B company)

Government Privatization - As governments provide more services with less intergovernmental revenue, they often choose to privatize certain services, such as waste collection. Privatization can result in increased efficiencies and lower costs to residents. Privatization will not work for all government services, as evidenced by resistance at the federal level to privatize Social Security, and the many problems experienced by communities that have privatized prisons, including prisoner escapes and management problems. Still, contractors and private service providers often find opportunities to provide services on behalf of the government.

Government Spending to Increase - Federal government spending is projected to increase in the foreseeable future. The Congressional Budget Office (CBO) predicts that governmental spending will increase steadily through 2075. Funding and administration of Social Security and governmental healthcare programs will be the primary drivers, making potential contracting or other private sector servicing opportunities in these areas plentiful.

Increasing Online Services - Electronic government services, or "e-government," is ncreasingly popular at all levels of government. Some county-level governments allow for online voting, and state governments let residents complete tasks that once required an in-person visit to a government office, such as auto registration renewals. Federal and state governments also increasingly encourage electronic filing of tax returns. If implemented properly, e-government can both streamline government services and improve customer service.

Climate Change Expanding Environmental Mission - The EPA has traditionally been responsible for environmental regulatory services, but increased global attention to climate change is expanding this to other agencies. In addition, the government is increasingly interested in environmental research as it considers options for the regulation of greenhouse gas emissions (GHG), such as carbon dioxide, to reduce the impacts of climate change.