Providers in this market collect and dispose of non-hazardous waste in compliance with environmental regulations. Service providers also operate transfer stations where waste is moved from local vehicles to long-distance automobiles for transport to disposal facilities. Contractors operate on a national, regional, and local level and provide services on behalf of municipal (household), industrial, and commercial buyers.

Overview

Global Average Solid Waste Mgt Costs - 2023 

Overhead - 40.5%

Profit - 8.6%

Purchases - 26.7%

Wages  - 24.2%

Cost Breakdown USD                                   Overhead 40.5%       Purchases 26.7%       Wages 24.2%     Profit 8.6%           TOTAL (100%)

Solid Waste Disposal

Ton (Mar 23)                                                         $35                             $23                             $21                     $8                           $87

Price Trend 2020-2023 Annual CAGR                                                                                                                                                3.9%

Crude Oil and gasoline prices have started to dip due to increased supply and weaker demand (down from $120 per barrel in the summer of 2022 to $77 per barrel in March 2023).

Price Pressures / Environment  

Cost Breakdown & Key Points

• Market price has increased as vendors have been facing volatile fuel costs and the increased costs of complying with regulations related to landfill capping and emissions.  Over the next three years costs are expected to decline slightly as construction and production rates slow due to rising interest rates and fuel costs start to fall
• Due to established regulations, there is little differentiation in the methods by which suppliers collect and dispose of solid waste.  As a result, any operator can adequately perform services, thus providing buyers with more options during the supplier vetting process
• Switching costs for solid waste collection and disposal services are moderate due to the associated contractual obligations and district surcharges that are applied whenever a supplier begins services
• The total cost of ownership is moderate in this market and depends on the type and volume of solid waste being collected and disposed of, the collection location, and the disposal method used
• Ongoing staffing shortages for waste disposal workers are pushing vendors to offer more generous pay and benefit packages, raising the cost of employment for market providers and increasing the likelihood that they will increase service prices 

• Depreciation 7.3%
• Rent & Utilities 4.6%
• Repairs &
  Maintenance
  4.2%
• Insurance 1.6%
• Other 22.8%

The amount spent on trucks and facility machinery has been rising, putting upward pressure on market prices. This increase has been largely due to changes in the Clean Air Act of 1970 that require greater federal, state and local regulation of the emission of air pollutants.

• Gasoline 17.8%
• Other 8.9% 

• Average wages - administrative & waste services 24.2%

The price of gasoline has been increasing due to supply chain issues resulting from the Russian invasion of Ukraine and rising demand due to increased industrial activity. The resulting increase in suppliers' purchase costs has been placing upward pressure on service prices.

During the past three years, wages for waste disposal workers have been rising as employers have had difficulty hiring and retaining workers. This trend has been putting upward pressure on market prices.

Outlook & Opportunities

• ED&I - the market offers opportunities for sourcing from women, veteran and minority-owned businesses, meaning buyers may be able to meet diversity metrics or values for this market
• Supplier ESG Objectives - suppliers in this market have commitments to ESG initiatives. As such, buyers are advised to seek out vendors that can satisfy internal ESG procurement goals or metrics
• Waste Management Future -  the market is organised around the premise of waste collection and disposal, so waste management reduction is at the crux of market services. Providers have thus sought to minimise waste in accordance with their mission to effectively collect and dispose of it. Technological advances in waste collection and disposal is helping to drive reduction in addition to a  variety of standards which govern the market i.e. the Environmental Protection Agency (EPA) in the USA is playing a prominent role.  The US General Service Administration (GSA) for example, manages solid waste in accordance with federal, state, and local regulations and waste is generally managed under the following categories:

• • Municipal solid waste (trash or garbage)
  • Construction and demolition waste and
  • Hazardous waste

The GSA also tracks the amount of solid waste landfilled, recycled and composted to measure solid waste diversion progress relevant to market operations.

Key Cost Driver Information sourced from  Procurement IQ Procurement Research - 50806767 Solid Waste Collection & Disposal Services

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