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
Jul 3, 2024 - Small Businesses Keep Labor Market Strong
- While the Federal Reserve’s inflation-fighting interest rate hikes have helped to cool the US job market, the drop in job openings hasn’t been even across all employers, according to The Wall Street Journal. Small businesses’ appetite for workers largely fuels the robust labor market. In April, companies with fewer than 50 employees had about 50% more job openings than they averaged in 2019 before the pandemic. Over the same period, large firms posted about 14% fewer new jobs. The steady demand for workers among small firms surprises some labor economy watchers as small businesses, which are dependent on bank loans for start-up and operating capital, are extremely sensitive to higher interest rates. Some experts suggest that solid consumer demand may be enough to help small businesses offset their higher borrowing costs, allowing them to keep hiring.
- US average shift work volume was flat in June compared to the prior month, according to data compiled by HR solutions firm UKG. June is typically a strong month for labor markets, so an early-summer slowdown in shift work could signal the hot jobs market is cooling. While most major industry sectors tracked by UKG saw growth in shift work, gains were muted. Services and distribution saw the biggest gain in June shift work with a rise of 0.5%, followed by retail, foodservice and hospitality (0.2%), and healthcare (0.1%). Shift work in manufacturing declined 0.1% in June from May. The UKG Workforce Recovery Scale, which compares shift activity to pre-pandemic levels, rose to 99.9 in June compared to 98.9 in May.
- Since Q4 2022, weekly US in-person office occupancy has remained a stubbornly low 50%, according to a June 2024 report by The Conference Board. In the wake of the pandemic, employers have found that offering hybrid work schedules is an effective way to attract and retain workers constrained by long commutes and higher costs of living. Nearly 70% of US firms offer their employees hybrid or remote flexibility, up from about 51% in Q1 2023. According to data firm CoStar, when companies sign new leases they are reducing their office footprints by about 19%. Low office occupancy brings risks for the commercial real estate sector and cities’ central business districts that depend on office worker spending. Weaker office occupancies can reduce demand for several types of administrative, business, and building services, including office and facilities support, security, janitorial, pest control, landscaping, and waste collection.
- In June, prices for most curbside materials held steady or saw slight gains, according to RecyclingMarkets.net. The national average price for old corrugated containers (OCC) used to manufacture new containers was up about 2% in June from May and increased 125% compared to a year earlier. Mixed paper prices rose 2.9% in June from the month before and were up 400% compared to June 2023. Prices for post-consumer PET bottles and jars rose 5.4% in June compared to May, and PET prices were up 26% year-over-year. Natural high-density polyethylene (HDPE) prices increased by 4.4% over May 2024 but declined by 50.7% from June 2023. Prices for color HDPE fell 10% in June from the previous month but were up 55% compared to June 2023. Polypropylene prices were mostly flat in June month-to-month but were down 15.5% year-over-year.
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