Waste Management Services Industry Overview

Excerpt from Waste Management Services Report

Companies in this industry collect, treat, and dispose of garbage and other waste materials, recover reusable materials through recycling operations, and provide remediation services for decontaminating buildings, mine sites, soil, or groundwater. Major companies include Waste Management, Republic Services, Waste Connections, and Casella Waste Systems (all in the US), and SUEZ Environnment and Veolia Environnement (France).

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 industry is concentrated: the 50 largest companies account for about 55 percent of revenue.

Products, Operations & Technology

Major services include waste collection, treatment, and disposal; remediation; and recycling. Waste collection accounts for about 50 percent of industry revenue; treatment and disposal, 15 percent; and remediation, 15 percent. (Remediation involves the cleaning of crude oil spills and ground contamination, removal of asbestos and lead paint, and restoration of strip-mined areas.) Small companies usually operate in only one of these segments. Larger companies often have vertically integrated operations that include all of these components.