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 9.5 million workers and generate $1.47 trillion in annual revenue, according to government sources.
- The administrative and waste management services sector represents 3.4% of the nation's Gross Domestic Product (GDP) and employs 6.2% 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 2.5 million owner-operated establishments with no employees. Subsectors with the highest numbers of nonemployer establishments are services to dwellings (64%); 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
Sep 3, 2024 - Work-From-Home Levels Remain High
- According to a recent survey by the US Bureau of Labor Statistics (BLS), the percentage of workers who work from home has increased over the last year. In June 2024, 22.3% of the US workforce teleworked on a non-seasonally adjusted basis, up from 19% in June 2023. The share of workers who teleworked increased even though the total number of workers remained essentially unchanged. However, over the same period, the average weekly hours for remote work fell from 28.7 to 27. The BLS attributed the drop in weekly hours spent working from home to wider adoption of hybrid models where workers divide work between the office and home. Between June 2023 and June 2024, the percentage of workers who telework full-time fell from 53.2% to 48.4%. Remote work can put downward pressure on demand for some administrative services such as facilities support, security, pest control, janitorial, and landscaping.
- US average shift work volume decreased by 1.8% in July compared to the prior month, according to data compiled by HR solutions firm UKG. July marked the second consecutive monthly decline in shift work, suggesting the US labor market is nearing full employment. All major industry sectors tracked by UKG saw shift work either remain flat or decline in July. Healthcare, and services and distribution were tied for the biggest drops in July shift work with declines of 2.6%, followed by retail, foodservice and hospitality (-1.9%), and manufacturing (0.0%). US shift work growth is a key demand driver for employment services.
- Redemption rates for bottles declined in 2023 for most states that have bottle bills, according to a recent report by the Container Recycling Institute and reporting by Waste Dive. The beverage container redemption rate declined between 1% and 4% in seven of the ten states with bottle bills; Oregon posted a 1% increase in redemption, and Vermont’s rate improved by just under 1%. Hawaii notched the biggest decline in redemption rates with a drop of 4%, followed by Michigan (-3%), Massachusetts (-2%), and New York (-2%). Redemption rates have generally declined since 2017. The National Waste & Recycling Association opposes deposit-based bottle return laws, arguing they divert resources away from curbside recycling and reduce revenue for material recovery facilities (MRFs). However, the Solid Waste Association of North America (SWANA) supports deposit return programs because they improve collection rates and reduce litter.
- Fewer workers are looking to switch jobs compared to two years ago during the so-called Great Resignation when millions switched jobs in search of better pay and working conditions, according to The Wall Street Journal. In what some labor economists have dubbed The Big Stay, workers are remaining in place amid improved job satisfaction and a slower labor market. In a recent survey by HR consulting and recruiting firm Robert Half, only 35% of those surveyed said they planned to look for a new job in the second half of 2024. More than three-quarters of respondents said they were content with their jobs and 85% said their work-life balance was favorable. A similar survey by MetLife showed that 73% of workers surveyed were happy in their current position, up from 69% a year earlier.
Get A Demo
Vertical IQ’s Industry Intelligence Platform
See for yourself why over 60,000 users trust Vertical IQ for their industry research and call preparation needs. Our easy-to-digest industry insights save call preparation time and help differentiate you from the competition.
Build valuable, lasting relationships by having smarter conversations -
check out Vertical IQ today.