Los Angeles, CA (PRWEB) August 17, 2013
Amid the economic recovery, consumers and businesses are increasing consumption across the board, boosting waste volumes after a slump in 2008 and 2009. “Overall, operators in the Waste Treatment and Disposal Services industry have handled more waste in the past five years when compared to the years prior to 2008,” says IBISWorld industry analyst Deonta Smith. “With a substantial increase in solid waste, participants have become more efficient and innovative in their disposal activities, generating new revenue streams.” The most significant investment is waste-to-energy (WTE) plants, a means in which operators create energy from received waste and sell it to downstream customers. WTE plants have contributed to the industry's average annual revenue growth of 1.6% over the past five years to total $16.4 billion in 2013.
Waste volumes fell during the recession for two primary reasons: the housing market bust and faltering industrial production. New construction creates high volumes of waste, increasing demand for industry services; as the housing market crashed, demand from the residential construction market virtually disappeared. Additionally, industrial plants typically produce the highest percentage of hazardous waste handled by the Waste Treatment and Disposal Services industry, and these customers are charged a higher rate for the disposal of this waste. “As industrial production slowed in line with falling consumption, demand for disposal services fell,” says Smith. “In 2010, however, the trend of declining industrial production reversed, and the economy showed signs of recovery.” Hazardous waste is being collected at an increasing rate, leading to expected revenue growth of 2.3% in 2013.
The Waste Treatment and Disposal Services industry is experiencing vertical integration as firms increasingly offer collection, transfer, disposal and recycling services. Firms in this industry are aiming to increase the internalization of waste disposal so they can deposit more waste in their own disposal facilities. This waste disposal internalization avoids giving tipping fees to third parties and increases the profitability of collection services. The merger between Republic and Allied Waste Industry is a clear example of this trend. Furthermore, market share concentration will continue to grow, due in part to the increased efficiency from the growing regulatory requirements and technical complexities of waste disposal adding to costs.
Over the next five years, the industry will grow in line with increased waste production. As the US economy improves, overall consumption and waste volumes will increase. Construction activity is forecast to pick up as housing values begin to rise and demand for commercial construction responds to rising consumer spending. As construction companies break ground on homes and offices, waste production will increase, spurring demand for waste treatment and disposal services. Industry players will also increasingly focus on WTE activities as government regulation on the industry's traditional landfill activities strengthens. For more information, visit IBISWorld’s Waste Treatment & Disposal Services in the US industry report page.
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IBISWorld industry Report Key Topics
Firms in this industry own and operate waste treatment or disposal facilities including waste combustors (waste-to-energy plants), solid waste landfills and compost dumps. Many firms in this industry also provide waste collection and hauling services and are also included in the Waste Collection industry (IBISWorld report 56211). This industry excludes sewer systems, sewage treatment facilities and local governments that directly provide waste disposal services.
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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