Waste Management Services

Waste Management Services

Brief Excerpt from Industry Overview Chapter:

Companies in this industry collect, treat, and dispose of garbage and other waste materials; and recover reusable materials through recycling. Additionally, companies provide remediation services for decontaminating buildings, mine sites, soil, or groundwater. Major companies include Republic Services and Waste Management (both based in the US), as well as SUEZ and Veolia (both based in France), and Waste Connections (Canada).

COMPETITIVE LANDSCAPE

Demand depends on the volume of waste generated, which depends on economic conditions and consumer spending. The profitability of individual companies depends on efficient operations, because the service is a commodity sold based on price. Big companies enjoy economies of scale in purchasing equipment and establishing networks of facilities. Small companies can compete successfully by offering specialized services or serving local markets. The US industry is concentrated: the 50 largest companies account for about half of revenue.

PRODUCTS, OPERATIONS & TECHNOLOGY

Collection services (residential and non-residential) or non-hazardous materials account for about 50% of the US industry revenue; followed by disposal services (about 10%) and site remediation services (about 10%). Other services also include consolidation, storage, and preparation services. Small companies usually operate in only one of these segments. Larger companies often have vertically integrated operations that include all of these components. Small companies usually operate in only one of these segments. Larger companies often have vertically integrated operations that include all of these components.