How Waste Industry Consolidations Impact Your Business

NWA advocates for their clients for better waste management during consolidations.

Trends such as mergers, acquisitions and consolidation in the waste industry continue to rise, which creates concerns for businesses. Reducing competition limits choices, leads to price increases, and creates confusion in the marketplace. Customers of waste management companies going through transitions can also experience unsubstantiated cost increases, service interruptions and invoice discrepancies. Additional resources are recommended for businesses to navigate these changes and limit adverse impact on operations.

Growing monopolies in the waste management industry

Industry consolidation is being driven by the mega waste companies. With a desire for broad market control, these companies are looking for additional assets and resources by consolidating with smaller companies that in many cases are experiencing financial constraints brought on by larger competitors. These consolidations can increase scale and growth for the aggressor, but leave the little guys, businesses and the consumer, in the trash heap.

Clients of waste management companies going through a consolidation are often left confused and frustrated. It’s typical for businesses to experience cost increases as a result of consolidation. It’s also common to experience service interruptions, which can impact daily operations and in turn, their customers.

Benefits of working with an independent management company

Independent management companies act as a liaison for businesses, balancing operational needs with efficient, responsible handling of various waste streams. The management company’s goal is to help these businesses cut down on the waste and recycling expenses, find rebates, and reduce the volume of waste going to landfills.

Working alongside an independent management company can also help you avoid pitfalls by providing a single point of contact no matter how the landscape of the waste management industry changes, reducing unnecessary hassles.

Key takeaways

Waste management companies will continue to merge and consolidate as they attempt to navigate anti-trust laws in seeking dominant market position. Either to meet Wall Street earnings and growth expectations, or for new mega companies to be created and go public, consolidation usually benefits a select few.

With no sign of consolidation slowing down in the near future, working with an independent management company can help make the transition phase easier on you. You have plenty to worry about when it comes to running your business, so trying to manage service interruptions or rate increases for your waste streams shouldn’t be on your list of daily stresses. Waste management companies offer you a reliable main point of contact for all your questions and concerns.

Read about our approach to learn how we work with independent haulers.