The rising number of domestic businesses is expected to result in higher demand and prices for waste collection services over the three years to 2017
Los Angeles, CA (PRWEB) December 03, 2014
Solid waste collection and disposal services have a buyer power score of 3.1 out of 5, indicating a moderate level of negotiating power for buyers. Although the present purchasing environment allows buyers to negotiate favorable contractual terms, buyer power has declined in the three years to 2014 mainly due to rising service prices. “Price growth during this period can primarily be attributed to fluctuating gasoline prices, regulatory changes and trends in demand for services from residential, commercial, industrial and other construction markets,” according to IBISWorld business research analyst Deonta Smith.
The numbers of businesses and households have increased during the three years to 2014. A rise in these numbers, in conjunction with growing industrial production activity, has led to increased waste generation and, subsequently, higher demand for waste collection services. Higher demand has, in turn, led to steady price growth for solid waste collection and disposal services, negatively affecting buyers. Additionally, an increasing number of environmental regulations have boosted compliance costs for market suppliers, further driving prices and hindering buyers' ability to negotiate lower service prices. “In the three years to 2017, service prices are forecast to continue growing as the economy stabilizes and construction activity continues to rise,” says Smith.
Fortunately, price volatility for solid waste collection and disposal services has been low over the past three years, so buyers have not experienced significant price shifts. Although the market's supply chain poses a moderate risk to buyers, especially in regards to fluctuations in the prices of various inputs, such as fuel, buyers should not face a high degree of risk from the supply chain as long as downstream demand remains stable and regulations regarding safe operating practices do not become too burdensome for suppliers to comply with. Buyers should determine their needs and the frequency with which they will require waste collection services and enroll in long-term contracts to help mitigate rising prices. Major vendors include Waste Management Inc., Republic Services Inc., Casella Waste Systems Inc. and Clean Harbors Inc. For more information, visit IBISWorld’s Solid Waste Collection & Disposal Services procurement category market research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of solid waste collection and disposal services. Contractors in this market collect and dispose of municipal (household), industrial and commercial garbage and refuse. This report excludes hazardous waste disposal and recycling services.
Recent Price Trend
Product Life Cycle
Total Cost of Ownership
Supply Chain & Vendors
Supply Chain Dynamics
Supply Chain Risk
Market Share Concentration
Buying Lead Time
Key RFP Elements
Buyer Power Factors
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