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The US waste management industry includes about 18,000 companies with combined annual revenue of about $85 billion. Major companies include Waste Management, Republic Services, Waste Connections, and Casella Waste Systems. The industry is concentrated: the 50 largest companies account for about 55 percent of revenue.
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.
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.
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