As more local governments outsource refuse collection services, revenue within the industry continues to grow
Melbourne, Australia (PRWEB) December 18, 2012
Strong demand from local authorities for municipal waste collection services through contracts with private collection companies has contributed to strong growth in the Solid Waste Collection Services industry in recent years. According to IBISWorld Industry analyst Alen Allday, “as a greater number of local governments outsource refuse collection services, services and revenue within the industry continues to grow”. Government policies are also driving growth within the industry. A greater focus on recycling programs, and the expansion of these policies into newly regionalised areas, has seen an increased need for solid waste collection and recyclable waste collection by firms in the industry.
Strong revenue growth over the past decade has been driven by steadily increasing solid waste levels within the household and commercial sectors, stronger economic conditions, higher population growth, and greater volumes being collected by solid waste collection companies, usually through service supply contracts. These companies have also been able to charge higher prices to local authorities to carry out these services, which has also contributed to high industry profit levels. In the five years through 2012-13, IBISWorld estimates that industry revenue has increased at an annualised 7.1% to $5.73 billion. “Growth within this period was strongest in 2010-11 due to excess clean-up operations related to the Queensland floods of January 2011”, says Allday. Industry revenue is estimated to increase by 5.1% in 2012-13 with steadily increasing demand and pricing levels. Future revenue growth is expected to be strong but slower than in the previous five years due to the industry maturing and solid waste volumes increasing at a slower rate. Slower growth and smaller pricing increases due to stronger competition are expected to lead to low industry profit growth in future years.
The Solid Waste Collection Services industry has a low-to-medium concentration level. Therefore, the larger firms in the industry may be able to exert some pricing and market power, as well as benefitting from economies of scale to reduce costs and maximise profit. Over the past five years, the industry concentration is estimated to have increased due to consolidation and through local councils outsourcing waste collection services. Concentration also tends to be high in particular geographic regions, with larger firms gaining major contracts in cities to collect waste. The largest players in the industry are Transpacific Industries Group, SembSITA Australia, Veolia Environmental Services, and J J Richards & Sons.
For more information, visit IBISWorld’s Solid Waste Collection Services report in Australia industry page.
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IBISWorld industry Report Key Topics
Companies in this industry collect and short-distance haul domestic, commercial or industrial solid hazardous and non-hazardous waste. This industry also provides portable toilet hiring services, and metal skip and bin hiring services as part of a waste collection service.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Basis of Competition
Barriers to Entry
Technology & Systems
Regulation & Policy
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