BNFL Competition
Now Viewing BNFL's competition in: Waste Management (primary)
Call Preparation Questions
Customers, Marketing, Pricing, Competition
If in the waste collection business, does the company have commercial and residential customers? What percentage of each? - Commercial collection usually involves single-person dumpster pickup; residential collection involves two- or three-person teams loading trash into a truck.
If in the waste collection business, how many commercial, individual, municipal contracts does the company have? - Fees for commercial services depend on collection frequency, container size, waste type, distance to a disposal site, and disposal cost. Residential trash pickup may be on an individual monthly contract basis or more frequently, through a municipal contract that gives the collector exclusive rights to service homes in all or a part of the municipality.
If in the waste collection business, what is the average length of commercial contracts? - Commercial contracts are often annual, individual contracts monthly, and municipal contracts for one to five years.
If in the waste collection business, what areas does the company serve? - Different states have varying regulations and laws that determine methods and terms of trash collecting.
If a landfill operator, how many customers does the company have? - Privately owned landfills often compete with municipal landfills that are tax-subsidized and have access to tax-favored financing.
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 labor and efficient operations, because the service is a commodity sold based on price. Big companies have large efficiencies of scale in operations. Small companies can compete successfully by offering specialized services or serving local markets. Average annual revenue per worker for a typical company is about $220,000.
Business Challenges
CRITICAL ISSUES
Dependence on Government Regulations - The waste disposal industry, and landfill operations in particular, are subject to rigorous EPA, state, and local regulations, especially regarding possible groundwater pollution. Because landfills are considered undesirable, some states and cities try to restrict their expansion and forbid waste imports from other states. Many state and local governments claim the right to direct the flow of waste collected in their jurisdiction to specific facilities for processing and disposal, so-called "flow-control."
Customer Concentration - Although waste collectors often have a diversified customer base, some hold contracts with commercial, industrial, or municipal customers that account for a large portion of business. Changes in population, amount of trash produced, and cost to collect can affect profitability of customer bases. Waste management companies may also gain or lose contracts with customer segments depending on municipal involvement and area competition.
Industries Where BNFL Competes
- Environmental Services & Equipment
- Remediation & Environmental Cleanup Services(primary)
- Hazardous Waste Services
