Prices for recycling services are expected to increase in the three years to 2016 due to increasing regulatory requirements and the resulting demand for services
Los Angeles, California (PRWEB) October 14, 2013
Recycling services have a buyer power score of 3.0 out of 5. This score indicates gradually increasing prices. The majority of buyers require recycling services due to strict government regulations concerning the disposal of certain materials, such as electronic waste, construction materials and plastic bags. “Regulations dictate the types of materials that must be recycled and the methods required to handle these recyclables,” according to IBISWorld procurement analyst Aileen Weiss. Handling restrictions and service specializations make it nearly impossible for many buyers to manage recycling themselves, thus requiring them to outsource these services.
Average prices for recycling services slowly rose over the past three years, a trend that is projected to continue over the next three. As the economy recovers, an increase in the number of businesses and households will stimulate demand, resulting in greater volumes of recyclable materials being collected and processed. “Such growth is expected to boost the need for recycling services,” says Weiss. Because there are few substitutes available to buyers, any growth will drive prices steadily higher over the next three years. Furthermore, fuel surcharges, which are passed onto the buyer, are expected to fluctuate as the world price of crude oil changes.
Major suppliers include Waste Management Inc., Republic Services Inc., Clean Harbors Inc. and Casella Waste Systems Inc. A buyer's location can limit supplier options. In many instances, local municipalities will purchase recycling services for residential and commercial properties, charging each customer a fee. National suppliers have the advantage of numerous establishments in many regions. Buyers should select a service provider that is close by to reduce distance-based fuel surcharges. Additionally, buyers can gain more negotiating power through multiyear contracts to maintain service relationships and to shield buyers from some increases in service prices and fuel surcharges.
For more information, visit IBISWorld’s Recycling Services procurement research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of recycling services. Waste collection firms and waste treatment and disposal companies carry out recycling services. Recycling service providers collect recyclable materials or operate facilities that remove recyclable materials from the general waste stream. Suppliers typically collect green waste (e.g. wood, lawn clippings, leaves, weeds, tree branches, shrubs, garden trimmings and sawdust), plastic, glass, paper and metal, cans, electronic waste, construction waste and hazardous waste. Service providers do not include manufacturers of recycled materials, government bodies that directly provide recycling services to the public, or toxic and hazardous waste cleanup services.
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