Waste Industry Consolidations – How It Impacts Your Business

Growing trends such as mergers, acquisitions and consolidation in the waste industry continue to increase, especially in the current environment. This creates concerns for businesses who suddenly find themselves faced with a new company to deal with. Reduced competition limits choices, leads to price increases, and creates confusion in the marketplace. As a result, customers of waste management companies going through transitions often experience unsubstantiated cost increases, service interruptions and invoice discrepancies. Many businesses are forced to allocate additional resources to navigate these changes and limit adverse operational impacts.

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 acquiring 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 consumers, 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 own 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 waste and recycling expenses, secure rebates, and reduce the volume of waste going to landfill.

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

Key takeaways

Waste management companies will continue to merge and consolidate as they attempt to navigate antitrust laws in order to gain a dominant market position and remove obstacles including their efforts to neutralize independent management companies who advocate for their customers. Whether it’s to meet Wall Street earnings and growth expectations, or for new mega companies to be created and go public, consolidation usually benefits only a select few.

While the large players have dramatically turned up their M&A Activity, working with an independent management company can help make the transition phase easier on you as they will deal with making these changes smoother while reevaluating best options for you. You have plenty to worry about when it comes to running your business. Trying to manage service interruptions or rate increases for your waste streams shouldn’t be on your list of daily stresses.

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

For more information, contact National Waste Associates at 888-692-5005 or email us at sales@nationalwaste.com.

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