US Administrative and Waste Management Services Sector
Industry Profile Report
Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters
Industry Overview Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.
Call Preparation Call Prep Questions, Industry Terms, and Weblinks.
Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.
Industry Profile Excerpts
Industry Overview
The 455,718 establishments in the administrative and waste management services sector are comprised of industries that provide routine support to other organizations. The sector includes firms that provide employment services, investigative and security services, travel arrangements and reservations, waste management and remediation, services to buildings and dwellings, and business, office, and administrative support services. Firms typically operate as third-party contractors and may serve a variety of industries or individual households.
Client Industries Vulnerable to Economic Change
Demand for administrative support and waste management services is driven by the financial performance of customer industries, which can be vulnerable to downturns in the economy.
Solid Waste Tonnage and Recycling Rates Rise over Time
Waste generation has risen fairly steadily over time, and recycling and composting rates have increased as well.
Industry size & Structure
The administrative and waste management services sector is comprised of 455,718 establishments that employ 9.4 million workers and generate $1.47 trillion in annual revenue, according to government sources.
- The administrative and waste management services sector represents 3.1% of the nation's Gross Domestic Product (GDP) and employs 6.1% of the country's workers.
- The sector is fragmented with the 20 largest firms representing 20.8% of revenue.
- In addition to employer establishments, the administrative and waste management services sector has 2.6 million owner-operated establishments with no employees. Subsectors with the highest numbers of nonemployer establishments are services to dwellings (63%); office administrative services (12%); and business support services (9%). The owners of nonemployer firms typically perform the work and may outsource support functions like marketing and accounting.
- The administrative and waste management services sector has shed about 38,500 establishments annually, which equals about 10.6% of existing establishments. However, the sector has added about 42,900 new establishments annually, which is equivalent to 11.8% of existing establishments. As a result, the sector has an average growth rate of 1.2%.
Industry Forecast
US Administrative and Waste Management Services Sector Industry Growth
Recent Developments
Oct 31, 2024 - US Jobs Market to Cool Slightly
- Economic forecasters’ view of the US labor market is mainly optimistic, according to the most recent survey of economists by The Wall Street Journal. Overall, the panel of 66 economists’ view of the jobs situation was generally in line with the previous survey in July 2024. They expect the US employment rate will be about 4.2% by the end of the year and that the US will add an average of about 130,400 jobs per month over the next year. While the forecasters’ view does mark a slight cooling of the US labor market, they do not expect a significant increase in unemployment.
- US average shift work volume decreased by 1.9% in October compared to the prior month, according to data compiled by HR solutions firm UKG. The drop in shift work was attributed to the disruptions caused by Hurricanes Helene and Milton. However, UKG noted that shift work patterns outside the affected regions were at or near the historic monthly rate. The public sector industry led the October decline in shift work with a drop of 5.3%, followed by manufacturing, which fell 2.1%. Healthcare shift work increased by 0.6% in October, and retail, foodservice and hospitality was flat. The hurricanes caused a 3.7% decline in shift work in the Southeast in October. Shiftwork also fell 1.4% in the West and 1% in the Midwest. Shift work in the Northeast was flat.
- The troubled office space market may be turning a corner as major companies require workers to spend more time in the office, according to The Wall Street Journal. Amazon, Dell, and 3M have recently issued requirements for more office time for some of their teams. In the third quarter of 2024, a third of all firms required workers to be in the office five days per week, according to workplace strategy tracking firm Flex Index. The push for more in-office time comes amid a cooling of the US white-collar jobs market, which has shifted the balance of power back to companies. While industry observers doubt if workplace occupancies will ever return to pre-pandemic levels, some believe the market may have finally hit bottom. In the second and third quarters of 2024, the amount of occupied office space has remained stable after eight consecutive quarters of contractions, according to data firm CoStar. Office occupancy is a key demand driver for administrative and waste management services.
- While activities upstream of the consumer – primarily food production – are the most significant contributors to methane emissions from food waste, improvements to downstream waste management can also help reduce methane emissions, according to a recent study by ReFED and the Global Methane Hub and reporting by Waste Dive. Downstream food waste activities, such as landfilling, create about 1.5 million metric tons of methane gas per year in the US, according to the ReFED and the Global Methane Hub report. The EPA estimates that while food waste accounts for just under a quarter of landfilled material, it accounts for 58% of fugitive methane landfill emissions. ReFED suggests centralized composting is the most effective way to reduce downstream methane emissions related to food waste.
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