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
Feb 3, 2025 - Tighter Immigration Enforcement
- US companies should brace for an increase in immigration enforcement under the Trump administration, according to Bloomberg Law. Trump campaigned on a stricter immigration stance, which could bring an increase in immigration-related investigations, audits, and worksite enforcement. Some legal experts suggest a key enforcement area is likely to be greater scrutiny of Form I-9. Employers must have employees fill out an I-9 to verify work authorization status and identity. Form I-9 compliance enforcement – in the form of audits – hit an all-time high during Trump’s first term, and Immigration and Customs Enforcement fines for I-9 errors can range from about $280 to nearly $27,900. Since companies may employ workers with varying immigration statuses, some legal experts suggest that firms conduct internal audits to ensure compliance.
- While the waste management industry has made strides in improving safety - including additional training and technology investments in vehicles and facilities - dangers remain. According to the most recent Bureau of Labor Statistics (BLS) data, waste and recycling collection was the fourth most deadly occupation in 2023 (after logging, fishing and hunting, and roofing). There were no work-related fatalities in landfills in 2022, but there were three in 2023; materials recovery facilities (MRFs) had nine fatalities in 2023, up from five in 2022. Waste-handling industry trade groups expressed concern about the new BLS fatalities data and stressed that more must be done to protect workers.
- As hiring has slowed, more white-collar workers want to change jobs, according to The Wall Street Journal. A November Gallup survey of 20,000 workers showed that more than half said they were watching out for or were actively seeking a new job, marking the highest level of white-collar job seeking since 2015. However, unlike the so-called Great Resignation of 2021 and 2022, when millions found new jobs with better pay, hiring and wage growth have slowed. According to Gallup, workers are increasingly dissatisfied amid smaller raises, fewer opportunities for advancement, added responsibilities, and increased office attendance requirements. While job dissatisfaction seems to have risen, fewer workers are quitting. In September 2024, about three million people quit their jobs, compared to about 2.5 million who did so the same month a year earlier.
- According to a survey released by SmartRecruiters in December, 60% of business leaders worry that they have hired the wrong person. The survey also showed that 45% of leaders spend more than half of their time on tasks related to hiring. The leading negative impacts caused by ineffective hiring were damaged brand reputation (30% of respondents), weaker sales performance (29%), slower business growth (28%), and reduced service quality (28%). About 56% of those surveyed said the recruiting process has become more complicated in recent years due to the rises in digital nomads, international employees, and remote work. SmartRecruiters’ survey included business leaders at 500 companies in North America, the UK, and Australia.
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