US Administrative and Waste Management Services Sector

NAICS 56
US Administrative and Waste Management Services Sector

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Industry Summary

The 450,500 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 Rises, Recycling Rates Stall

Waste generation has risen steadily over time, and recycling and composting rates have increased as well.


Recent Developments

Aug 6, 2026 - Some Firms Return to Hiring, Tempering AI Job Fears
  • Several major US employers are planning modest hiring increases after months of limiting headcount due to economic uncertainty and expectations that AI could replace more jobs, according to The Wall Street Journal. Companies including Alphabet, CSX, Booz Allen Hamilton, Snap-on, and ServiceNow are adding workers. Some executives have concluded that AI has limitations and requires employees, including entry-level workers, to operate alongside it. Layoffs are also easing, while staffing firm Robert Half said hiring demand is improving across technology, financial services, and other fields. Renewed recruiting could lift demand for staffing, recruiting, and temporary employment services, particularly for specialized and junior roles. However, companies remain selective, and uncertainty about AI's long-term effect on employment could continue to encourage contract and part-time hiring.
  • According to Resource Recycling, The Battery Network saw strong growth in public interest and collection infrastructure in 2025, even as total battery collections declined 4.8% to 9.3 million pounds. Searches for drop-off sites rose 42%, website visits increased 39%, and the network added 31 stewards, bringing its total to more than 250. The collection of high-energy batteries (over 300 watt-hours) surged from about 3,000 pounds in 2024 to more than 60,000 pounds in 2025. The nonprofit also expanded school, industry, retail, mail-in, and takeback initiatives to keep batteries out of landfills and reduce fire risks at waste facilities. TBN plans to broaden the use of its OneDrum collection system, expand electric-vehicle battery programs, improve its customer portal, and continue supporting state battery-collection laws.
  • CFO.com reports that AI is making corporate real estate requirements harder to predict and prompting companies to favor flexible workspace strategies. In a Censuswide survey of 1,000 US and UK CEOs and CFOs, 60% said AI has complicated office space planning, while 73% said technological change has reduced their willingness to sign long-term leases. Nearly all respondents are shifting real estate costs from fixed to variable, and the majority are investing in hybrid workspaces, locating offices closer to employees, and considering decentralized models. A separate JLL survey found that only 15% of executives and real estate leaders had moved beyond initial AI deployment to optimize property operations. Companies further along are using agile planning to reconcile rapid technological change with long-term real estate commitments.
  • The Wall Street Journal reports that work from home appears to have stabilized at levels far above those before the pandemic, despite high-profile return-to-office mandates from major employers. A monthly survey by economists at WFH Research found that 26% of paid, full workdays were done from home in May 2026, compared with 27% two years earlier and a Labor Department estimate of about 7% in 2019. Other data show office visits remain well below pre-pandemic levels, suggesting hybrid work has become a lasting feature of the US labor market. If office occupancies remain below historical norms, it could spell long-term impacts on demand for several types of administrative and support services, including janitorial, security, landscaping, facilities support, office administration, and business services.

Industry Revenue

US Administrative and Waste Management Services Sector

US Administrative and Waste Management Services Sector — revenue distribution by firm size chart

Industry Structure

Industry size & Structure

The administrative and waste management services sector is comprised of 450,500 establishments that employ 9 million workers and generate $1.4 trillion in annual revenue, according to government sources.

  • The administrative and waste management services sector represents 3% of the nation's Gross Domestic Product (GDP) and employs 5.7% of the country's workers.
  • The sector is fragmented with the 20 largest firms representing 17% of revenue.
  • In addition to employer establishments, the administrative and waste management services sector has 2.9 million owner-operated establishments with no employees. Subsectors with the highest numbers of nonemployer establishments are services to dwellings (62%); 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

Industry Forecast
US Administrative and Waste Management Services Sector Industry Growth
US Administrative and Waste Management Services Sector — industry growth forecast chart
Source: Vertical IQ and Inforum

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