Solid Waste Services & Recycling

Solid Waste Services & Recycling

Brief Excerpt from Industry Overview Chapter:

Companies in this industry operate materials recovery facilities (MRFs) that separate and sort recyclables from waste streams or separate commingled recyclable materials. Major companies include the MRF divisions of vertically integrated waste management companies such as Stericycle, Republic Services, and Waste Management (all based in the US), as well as Remondis (Germany), Suez Environnement (France), Veolia Environnement (France), and Waste Connections (Canada).

COMPETITIVE LANDSCAPE

Demand depends on the volume of waste generated, which depends on economic conditions and consumer spending, and the perceived importance of recycling. 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.

PRODUCTS, OPERATIONS & TECHNOLOGY

Nonresidential collection account for the majority of industry revenue at about 50%. This is followed by consolidation, storage, and preparation services (about 25%) and recovery and preparation services (about 25%). Other services include transfer facility services, transportation of waste by road, and non-hazardous waste brokerage services.