Waste Collection Services in the US Industry Market Research Report Now Available from IBISWorld

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Overall population growth and the corresponding rising quantity of trash will continue to drive demand for waste collection services. The ability of companies to meet government-imposed environmental targets will require more efficient recycling techniques, but new regulations will strengthen industry performance. Growth in recycling will particularly strengthen revenue, as larger-scale recycling facilities are required. For these reasons, industry research firm IBISWorld has added a report on the Waste Collection Services industry to its growing industry report collection.

IBISWorld Market Research

IBISWorld Market Research

Population increases and more business activity will boost waste collection demand

The Waste Collection Services industry is affected by many facets of the economy, from changes in population, technology, commodity prices and consumer behavior to industrial, business and construction activity. In 2012, revenue is expected to climb 6.2% to $46.3 billion, driven by returning demand from commercial industries, IBISWorld industry analyst Brian Bueno said. Over the five years to 2012, revenue has increased at an average annual rate of 1.1%, brought down by revenue dips in 2008 and 2009 as demand from major markets tumbled. Profit shrank slightly over the five years to 2012 as the industry struggled with increasing fuel costs and weak commercial collections during the recession. The waste pile has grown, with estimates of municipal solid waste (MSW) standing at about 258.2 million tons in 2012, up from 235.5 million tons in 2002. In addition to MSW, the industry also collects industrial, construction and demolition waste. Industrial and construction waste is susceptible to industrial and construction activity, which tumbled in 2008 and 2009. The industry collects most of the country's waste, while municipalities account for roughly a quarter of the MSW market. While local government activities are not included in the industry, the amount of waste collected directly by municipalities is declining, as these services are increasingly outsourced to private operators. The largest private operator is expected to collect about 66.0 million tons of residential, commercial and industrial waste in 2012.

The major national and regional operators in the industry are vertically integrating, operating along the complete waste stream of collection, transfer, disposal and recycling. “Heightened environmental awareness by many communities and municipalities is expanding the range of collection, recycling and disposal services demanded,” Bueno said. Vertical integration also allows collection companies to internalize the payment of tipping fees to landfill facilities, if the waste is deposited at their own site. Many larger firms are currently disposing of business that have lower margins and purchasing businesses that will give them advantages in efficiencies and economies of scale, resulting in increased concentration. Waste collection revenue is nearly three times the size of waste disposal revenue and more than 10 times the revenue generated from the sale of recyclable material and energy produced from waste. The Waste Collection Services industry is composed of 7,010 enterprises and 181,837 employees, representing a vast network of trucks, drivers and bins that reach more than half of the population. A stronger economy will further boost consumer spending, business, industrial and construction activity over the next five years, leading to more waste and, therefore, greater need for disposal and recycling services. Over the five years to 2017, revenue is projected to grow.

The top four operators in this industry command more than half its market share. Larger firms acquiring smaller competitors drove most consolidations over the past decade, but this trend has begun to change as larger operators have increasingly merged with their larger counterparts. For instance, in 2008, Allied Waste merged with Republic Services Inc., bringing together the second and third largest firms in this industry. The combined company earns $8.4 billion. The merger is expected to generate cost savings of about $150 million in 2012. The largest company in this industry is Waste Management Inc. Despite mergers and acquisitions, concentration is anticipated to diminish over the five years to 2017. As major downstream markets grow, demand for collections services will increase and, with it, new firms are expected to enter the industry to meet collection needs. In addition, increased demand for recycling services will result in a greater number of firms specializing in the collection and sorting of recyclable material. Over the five years to 2017, the number of industry firms is forecast to increase at an average yearly rate of 0.7% to 7,275. For more information, visit IBISWorld’s Waste Collection Services report in the US industry page.

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IBISWorld industry Report Key Topics

This industry collects hazardous and non-hazardous waste and recyclable materials. Non-hazardous waste includes municipal solid waste (household garbage) and industrial and commercial waste. The industry includes transfer stations, where waste is transferred from local vehicles to long-distance vehicles for transport to disposal facilities. This industry does not cover municipalities that directly provide waste collection services.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalization & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.

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Gavin Smith
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