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 19,200 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 23-24 workers, and generates about $5-6 million annually.
- The waste management industry consists of about 19,200 firms that employ about 476,700 workers and generate about $140 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
Apr 26, 2024 - Slower but Steady Industry Growth
- 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 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.
- A recent study published in the journal Science found that, on average, methane leaks from US landfills are nearly three times what is reported by federal regulators, according to The New York Times. The study measured emissions from about 250 landfills in 18 states, or about 20% of the national total. Like carbon dioxide, methane is a greenhouse gas contributing to global warming. Landfills are the third-largest source of human-caused US methane emissions, according to EPA estimates. However, the EPA’s estimates may be too low because they are based on computer modeling rather than measurements in the field. The Science study’s authors flew over landfills in airplanes outfitted with imaging spectrometers that measure methane levels in the air. At about half the sites they studied, researchers identified methane hotspots that were indicative of a containment issue, such as a large leak. Many landfills have special pipes and wells to trap methane, which is then burned off or used to generate electricity or heat. However, these systems can leak. The study’s authors said their efforts not only provide a better understanding of methane produced by landfills but also make landfill operators aware of leaks so they can repair them.
- Waste collection trucks are being outfitted with AI-enabled camera systems that can help cut down on contamination in curbside recycling bins, according to Waste Dive. Such systems can capture images of waste as it’s emptied into the truck and analyze them to identify nonrecyclable materials. The photos are then sent to the waste collection customer with tips about improving recycling efforts. Industry observers suggest the AI tools are particularly useful for municipalities that operate waste collection fleets, as they can face contamination fees from material recovery facility operators. Waste management firm WM has a proprietary technology known as Smart Truck that’s been widely deployed in the company’s California and Texas operations. Smart Truck has helped MW reduce contamination by as much as 20%.
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