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 668,168 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 668,168 establishments that employ 9.6 million workers and generate $1.2 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
May 3, 2024 - Steady, Moderate Sector Growth
- The US administrative and waste management sector is forecast to notch steady growth for the next several years following expected sluggishness in 2024. The industry’s year-over-year sales increased 12.3% in 2022 and 7.1% in 2023, according to Inforum and the Interindustry Economic Research Fund, Inc. Sales growth is projected to slow to 3.5% in 2024, then rise to 5.3% in 2025. The industry will then see stronger and steady average annual growth of about 6.3% through 2028, according to Inforum and the Interindustry Economic Research Fund, Inc.
- In March, US companies had 8.5 million job openings, marking the lowest number of open positions since early 2021, according to the US Department of Labor and The New York Times reporting. The number of filled positions declined to the lowest level in nearly four years. Job quits also fell to 3.3 million, which was the smallest number in more than three years, down significantly from more than four million per month seen at the height of the so-called “great resignation” in 2022. The Labor Department data suggest that the labor market is finding a better balance between supply and demand.
- In April 2024, the EPA designated two types of per- and polyfluoroalkyl substances (PFAS) - more commonly known as “forever chemicals” - as hazardous substances under Superfund or CERCLA (Comprehensive Environmental Response, Compensation, and Liability Act). The designation affects perfluorooctanoic acid (PFOA) and perfluorooctanesulfonic acid (PFOS) and ensures that spills, leaks, and other releases of the chemicals are reported and cleaned up. Forever chemicals - which are used in food packaging, textiles, and cookware – have been linked to health problems, including cancers and immune and developmental disorders. While the EPA issued a policy memo stating it does not intend to target municipal landfills for enforcement, some industry trade groups say the agency needs to go further to ensure the industry is protected from liability. Leaders of the National Waste & Recycling Association (NWRA), the Solid Waste Association of North America (SWANA), and the US Composting Council (USCC) say federal legislation is needed to protect “passive receivers” of PFAS materials.
- Persistent work-from-home patterns in the wake of the pandemic have contributed to record-high office vacancy rates. In the first quarter of 2023, 19.8% of US office space was vacant, according to Moody’s Analytics. That’s an increase from a vacancy rate of 19.6% in Q4 2023. High office vacancy rates could reduce demand for office administrative and facilities support services.
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