Regulatory Dependency and Changes: Montrose's business is highly dependent on environmental laws, regulations, and government enforcement, and changes in these could reduce demand for their services or impact profitability.

Intense Competition: The environmental services market is highly fragmented and competitive, which could lead to pricing pressure, difficulty winning contracts, or loss of market share.

Economic Downturn Sensitivity: Client spending on environmental services can be discretionary and is significantly influenced by general economic conditions, industrial activity, and public sector budgets, making Montrose vulnerable to economic contractions.