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Rubbish Revenues Rebound

Rubbish Revenues Rebound. The US waste management industry accounts for approximately 22% of total global revenues, or $89 billion. The top 50 US companies generates approximately 55% of all industry revenues.

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Rubbish Revenues Rebound

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  1. Rubbish Revenues Rebound • The US waste management industry accounts for approximately 22% of total global revenues, or $89 billion. The top 50 US companies generates approximately 55% of all industry revenues. • The National Waste & Recycle Association (NWRA) reported that private sector waste and recycling companies’ Q2 2015 revenues totaled $21.76 billion, a 10.3% increase. • Despite the Q2 2015 revenue growth, the Q1 2015 decrease of 11.7% caused total industry revenues for the first half of 2015 to decline 5.3% to $41.5 billion.

  2. Top Trash Titans • Although the waste management industry’s performance during the first half of 2015 was tepid, the major companies expect special waste and construction demolition and the commercial sector to provide growth during 2016. • Representative of the industry’s struggle during 2015 was the financial results of Waste Management, the industry’s largest company. For the first nine months of 2015, revenues decreased 8% to $9.72 billion and net income 74.6% to $480 million. • The top 5 waste management companies according to their 2014 revenues were Waste Management, Republic Services, Clean Harbors, Stericycle and Waste Connections. Their total of $30.9 billion in revenues represents 70.2% of the revenue of the 100 largest firms.

  3. Recycling Efforts Results • Currently, the recycling sector of waste management is experiencing a decline, as commodity prices have decreased, capital investment in new recycling centers has stagnated and the costs to operate a center have increased. • Nonetheless, recycling programs are showing improvements. According to Call2Recycle Inc., there was a 5% increase in the collections of batteries and cellphones in the US and Canada during 2015, or a total of 12.6 million pounds, a new record. • The Association of Plastic Recyclers reported that plastic-bottle recycling increased 3.3% during 2014 (latest data), or 97 million pounds, to a total of 3 billion pounds.

  4. The Enormity of E-Waste • According to the United Nations University (UNU), there was 40 million tons of e-waste worldwide during 2014. The US accounted for 7.8 million tons, the most for any country; however, it was 8th in per capita rate at 48.7%. • The UNU also reported that the recyclable materials in those 40 million tons of e-waste were worth approximately $52 billion, with gold representing $10.66 billion. • According to the Electronics Takeback Coalition, Best Buy has one of the best electronics-recycling programs. Free to anyone, the company considers it important to its corporate responsibility mission and it helps to increase foot traffic and purchases.

  5. Waste Innovations • The Environmental Protection Agency’s (EPA) proposed regulatory changes to reduce landfill methane emissions by one-third could cost approximately $55 million during the next 10 years. Waste management companies would bear much of that cost. • According to the EPA, the US generates approximately 14 million tons of food waste annually. Many municipalities are introducing local laws to increase the recycling of organic waste recycling, providing new opportunities for waste management companies. • New trash and recycling containers are being developed that will be solar-powered and tweet a message when a container is almost full. This in turn will make the collection process more efficient, with the least number of pickups and less fuel consumed.

  6. Advertising Strategies • Much like public utilities, television is an excellent medium for waste management companies to build and strengthen their brand and to motivate consumers, households, business and industry to be more conscious of the waste they generate. • Waste management companies can support local environmental, green and sustainability organizations with combination TV/social media campaigns to promote special events, such as community-wide recycling days or school programs to educate children. • Waste management companies can use TV to feature local restaurants that participate in the community’s food waste collection program. The waste companies can addc“co-op” funds to the restaurants’ smaller budgets to allow them TV exposure to a larger audience.

  7. Social Media Strategies • Social media provides waste management companies with many opportunities to engage with consumers. Create and post a quarterly poll with 5 questions related to current waste and recycling issues, and then post the results. • Ask consumers to post photos and videos of how they, as individuals and households, consciously contribute to maximum recycling, protecting the local environment and promoting sustainability in their communities. • Waste management companies that are targeting commercial and industrial accounts should use LinkedIn to post articles on pertinent waste management issues and photo and/or video profiles of the clients they serve, what services they provide and the benefits to the clients.

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