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
Mar 3, 2025 - Laid Off Federal Workers Face Tough Job Market
- The Trump administration’s efforts to reduce the size of the federal workforce is leaving some civil servants looking for work in a challenging market for white-collar jobs, according to The Wall Street Journal. Employment services professionals suggest that some ousted federal workers may not have the skills corporate leaders seek, and some might face age discrimination as the federal workforce skews older than the national average. The Office of Personnel Management offered buyouts to about 2.3 million federal employees in early February. As of mid-February, about 65,000 accepted the buyout, which allows them to continue to be paid until September without working. Employment services insiders note that the state and local government jobs market remains robust, but the duties for those positions often occur outside an office.
- Some waste and recycling trade groups have expressed concern that the Trump administration’s tariff strategy could affect recyclable commodities markets and increase operating costs, including crucial equipment and parts, according to Waste Dive. On January 21, 2025, President Trump declared that a 25% tariff would be imposed on imports from Canada and Mexico beginning on February 1, 2025. On February 3, Trump paused the tariffs for 30 days after Canada and Mexico agreed to increase their border security and drug interdiction efforts. A 10% tariff on goods from China went into effect in early February. The National Waste & Recycling Association and the Recycled Materials Association voiced concerns about the threat of tariffs, including higher costs, lower job creation, supply chain disruption, and reduced infrastructure investment. Waste and recycling trade groups also worry that tariffs could impact manufacturing industries that use recycled materials as key inputs. Barring another pause, the tariffs will go into effect on March 4, 2025, including 25% levies on imports from Canada and Mexico (and a 10% tariff on Canadian energy imports), an additional 10% tariff on Chinese goods, and a 25% tariff on all steel and aluminum imports.
- 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.
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