Waste Management Services
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 20,200 waste management companies in the US provide hazardous and nonhazardous waste collection, hauling, and treatment; operation of transfer stations and landfills; septic system pumping; and remediation including specialized cleanup of contaminated buildings, mine sites, soil, or ground water. About 66% of industry sales receipts come from services to businesses, organizations, and farms; 19% to residences; and 15% to government.
Worker Injury
Workers are exposed to a wide variety of risks including contact with contaminated and hazardous materials in trash and remediation sites, working with heavy machinery, and handling curbside trash bins near traffic.
Vertical Integration
Waste management companies are using vertical integration to control their waste streams, broaden services, cut costs, and improve profitability.
Industry size & Structure
The average waste management company operates out of a single location, employs 25 workers, and generates about $6-7 million annually.
- The waste management industry consists of about 20,200 firms that employ about 500,200 workers and generate about $137 billion annually.
- Average revenue per employee is about $246,000.
- The industry is concentrated at the top with the four largest firms controlling 29% of revenue. Otherwise, the industry is fragmented with many companies offering one or a few types of waste services.
- Major US companies include Waste Management, Republic Services, Clean Harbors, and Stericycle.
Industry Forecast
Waste Management Services Industry Growth
Recent Developments
Jul 23, 2024 - Industry Growth to Improve in 2025, Then Flatten
- The waste management industry is expected to see weaker sales growth this year, but demand is projected to improve in the following four years. The industry’s year-over-year sales increased by 12.4% in 2022 before dropping to 7% in 2023, according to Inforum and the Interindustry Economic Research Fund, Inc. Sales growth is projected to moderate further to about 3.6% in 2024, then rise to 4.3% in 2025. The industry will then see steady but mostly flat average annual growth of about 4.5% through 2028, according to Inforum and the Interindustry Economic Research Fund, Inc.
- In July, prices for curbside materials were mixed, according to RecyclingMarkets.net. Prices for post-consumer PET bottles and jars rose 8.5% in July compared to June, and PET prices were up 146.7% year-over-year. Natural high-density polyethylene (HDPE) prices increased by 5.1% over June 2024 and rose 17.3% from July 2023. Prices for color HDPE fell 26.2% in July from the previous month but were up 116.6% compared to July 2023. Polypropylene prices were mostly flat in July month-to-month but were down 14% year-over-year. The national average price for old corrugated containers (OCC) used to manufacture new containers was unchanged in July from June but increased 120% compared to a year earlier. Mixed paper prices were also flat in July but were up 400% compared to July 2023. Prices for aluminum beverage cans were unchanged in July from the previous month but increased 14.6% compared to a year earlier.
- In early July 2024, the EPA began enforcement after designating 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) in April. 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. The EPA’s ruling aims to target PFOS and PFOA manufacturers to pay for clean-up but doesn’t specifically exempt private waste and recycling facilities that may handle materials that contain the chemicals. Concerns remain despite an EPA companion “enforcement discretion” document specifying that the agency wouldn’t seek enforcement on publicly owned and operated municipal solid waste (MSW) landfills. The document doesn’t mention private MSW facilities. Later in July, the National Waste & Recycling Association, the US Chamber of Commerce, and Associated General Contractors of America filed a petition in federal court asking for a court review of the EPA's designation of PFOS and PFOA as hazardous substances under CERCLA. The groups want the court to consider whether the EPA incorrectly interpreted CERCLA in making the rule if the EPA properly considered the potential costs of the ruling, and if the ruling is unconstitutional for “imposing retroactive liability.”
- Some waste management industry observers believe there are plenty of merger and acquisition (M&A) opportunities for municipal solid waste (MSW) services providers to enter the complimentary environmental services market, according to Waste Dive. Much of the overall environmental services market is fragmented, providing a target-rich environment for major waste management firms to move into adjacent waste-handling markets, including liquids, hazardous, industrial, and nonhazardous. Such moves offer vertical integration opportunities to provide customers with a wider array of waste services.
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