New York, NY (PRWEB) December 23, 2013
The Waste Collection Services industry is sensitive to changes in population, technology, commodity prices, consumer behavior and industrial, business and construction activity. Over the past decade, the quantity of waste in the United States has grown, and the Environmental Protection Agency estimates that municipal solid waste (MSW) totaled about 262.7 million tons in 2013, up from 235.5 million tons in 2002. The industry also collects industrial, construction and demolition waste, which is generated from industrial and construction activity. In 2008 and 2009, industry revenue dipped because activity in these two sectors plummeted during this period. Consequently, over the five years to 2013, revenue increased at a restricted average annual rate. Profit margins also shrank slightly over the period because the industry struggled with increasing fuel costs and weak commercial collections during the recession.
Operators in the Waste Collection Services industry collects most of the country's waste, while local municipalities, which are not included in this industry, provide services to about a quarter of the MSW market. The amount of waste collected directly by these municipalities is declining, since these services are increasingly being outsourced to private operators. In 2013, the largest private operator is expected to collect about 66.0 million tons of residential, commercial and industrial waste. During the year, returning demand from commercial industries is expected to drive industry revenue growth. Additionally, the top four operators (Waste Management Inc., Republic Services Inc., Veolia Environmental Services North America Corporation and Stericycle Inc.) currently have a combined market share of more than half of the industry’s total (see IBISWorld report 56211 for major player market shares). Larger operators acquiring smaller competitors have driven consolidation over the past five years, but this trend has begun to change because larger operators have increasingly merged with their larger counterparts.
Consequently, the major national and regional operators in the industry have been vertically integrating over the past five years, operating along the complete waste chain of collection, transfer, disposal and recycling. Waste collection produces nearly three times the revenue generated by waste disposal, while the sale of recyclable materials and the energy created from waste makes more than 10 times that amount. Ultimately, over the next five years, a stronger economy will boost consumer spending, in addition to business, industrial and construction activity. According to IBISWorld Industry Analyst Deonta Smith, “These conditions will lead to more waste and, therefore, greater need for disposal and recycling services.” As a result, “revenue is projected to grow during the five years to 2018,” says Smith.
For more information, visit IBISWorld’s Waste Collection Services Industry in the US industry report page.
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IBISWorld industry Report Key Topics
Operators in the Waste Collection Services industry collect hazardous and nonhazardous waste and recyclable materials.
Nonhazardous waste includes municipal solid waste (household waste) and industrial and commercial waste. This industry also includes transfer stations where waste is transferred from local vehicles to long-distance automobiles for transport to disposal facilities. This industry does not account for government-provided services of a similar nature.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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