With the waste and recycling industry continuously moving forward with new technologies, best practices and regulations, Waste Advantage Magazine has gathered our editorial advisory board members to give their annual views on current trends and what is to come.
Thank You to Our Editorial Board Participants
David Biderman is the Executive Director and CEO of the Solid Waste Association of North America (SWANA). David joined SWANA in April 2015 after 18 years with the National Waste & Recycling Association, where he was their General Counsel, Vice President for Government Affairs and Safety Director. He has litigated cases before the Supreme Court; testified before federal agencies, state legislatures and city councils; and provided safety and compliance training to thousands of workers throughout the U.S. Prior to entering the waste industry, David was an attorney at the Washington, DC law firm Steptoe & Johnson, where he specialized in environmental and transportation law.
Will Flower is a Vice President with Winters Bros. Waste Systems on Long Island, NY. Winters Bros. is a recycling and solid waste firm with operations in New York and Connecticut. Will has 34 years of experience in the area of solid waste management and environmental protection. Prior to his work at Winters Bros., Will served as the President of Green Stream Recycling. He has also worked in the Director’s Office of the Illinois Environmental Protection Agency, for Waste Management, Inc. and later, for Republic Services. Inc. He has held a variety of operational and executive leadership positions.
Michael Paglia is the Chief Operating Officer of Florida Express Environmental (Ocala, FL). Following in his father and grandfather’s footsteps, he has been involved in the recycling and environmental waste services since a young age. Beginning as a part time summer employee for his father’s garbage collection company in Rockland County, New York, Michael soon realized that his future was in Environmental Services. Since 1974, Michael, alongside his brother, John Paglia Jr., have owned and operated recycling, solid and liquid waste companies throughout the Southeastern U.S. At age 23, Michael served as Regional Sales Manager for Waste Management of Florida, where he held that post for three years. After selling their Recycling Company to Commercial Metals Company, he stayed on board and became one of the youngest managers in Commercial Metals. For three years, Michael spearheaded projects in South Florida such as assisting Miami and the City of Homestead with the cleanup of Hurricane Andrew, worked overseas in Russia, Ukraine and the Caribbean as a metals trader. After four years with Commercial Metals, Michael and his brother, John, formed United Sanitation, a regional recycling, solid and liquid waste Company in North Central Florida. In 1996, United Sanitation merged with GeoWaste, a public company, providing solid waste services in North Florida and Southern Georgia. Soon after, Michael became Vice President and served on their Board of Directors for three years when it was merged into Superior Services. In 2000, Michael and John started SunStar Transport and Florida Express Environmental. Florida Express has grown into a regional solid and liquid waste company with a fleet of 30 trucks, two landfills and a recycling facility.
Larry Wyluda has been affiliated with the waste industry for more than 36 years. His experience ranges from providing financial products to the waste industry, working with waste equipment manufacturers, consulting with waste haulers on business practices and marketing waste related equipment to the environmental industry. His current role as CEO of Newport Environmental encompasses all of his background and expertise. He is a member of many waste and transportation associations including SWANA, CRRC, ATA, UTA and NWRA. He also supports EREF through his efforts with the annual Garbageman’s Invitational.
Adam Jochelson, P.E., MOLO, owns and operates Modern Landfill Engineering Services, LLC, where he promotes the application of cutting-edge technologies to improve the efficiency of landfill operations and serves the engineering needs of construction contractors. Adam built his knowledge and techniques over a nine-year period as the onsite engineer at the McCommas Bluff Landfill in Dallas, TX. During his tenure at McCommas Bluff Landfill, Adam was a facility leader, directing planning and development at the State’s largest landfill, a site whose intake regularly averages more than 6,000 tons of municipal solid waste per day. Adam’s work was a driving force behind the adoption of super-modern operational techniques and implementation of Enhanced Leachate Recirculation (ELR) at Dallas’s landfill. He also influenced daily operations, analyzed performance measures, managed construction projects, created operational policies, ensured regulatory compliance and headed up public relations efforts for the facility. Adam also serves as a Principal Engineer at DHR Engineering, Inc., focusing on the civil engineering needs of small to medium sized residential, commercial and institutional projects. Prior to occupying this position, he managed the landfill division for GeoShack, North America, working with waste management facilities to implement GPS technologies. His unique experiences in engineering and other fields have combined to create an exceptional understanding of the various challenges inherent in landfill planning, design and operations.
Marc Rogoff is a Project Director with SCS Engineers who serves as their SE Manger of their Sustainable Materials Management Program. He has more than 38 years of experience in solid waste management as a public agency manager and consultant. He has managed more than 400 consulting assignments across the United States on literally all facets of solid waste management including waste collection studies, facility feasibility assessments, facility site selection, property acquisition, environmental permitting, operation plan development, solid waste facility benchmarking; ordinance development, solid waste plans, financial assessments, rate studies/audits, development of construction procurement documents, bid and RFP evaluation, contract negotiation and bond financings. Marc has directed engineer’s feasibility reports for nearly two-dozen public works projects totaling more than $1.2 billion in project financings. He has interacted with bond rating agencies, financial advisors, insurance underwriters and investment bankers involved in these financings. His efforts have included the development of more than 100 detailed spreadsheet rate models establishing the financial feasibility of each project, long-term economic forecasts, and projected rate impact upon project users and customers. During the course of his governmental and consulting career, Marc has directed or conducted more than 50 solid waste system rate analyses and delivered testimony before city councils and county commissions regarding their impact on customers. He is active professionally with the Solid Waste Association of North America and currently serves on the association’s Executive Board representing their technical committees. Marc is a noted author of eight solid waste textbooks. He has a PhD from Michigan State University and undergraduate degrees from Cornell University.
Looking back on 2016, have there been any significant changes or transitions that you have seen or heard over the past year in the waste and recycling industry and its markets?
DB: I think the most significant news item over the past year was the Waste Connections-Progressive Waste merger, establishing a third national solid waste company, and one with substantial operations in Canada as well. The gradual improvement in the U.S. economy has helped the waste sector improve its top line revenue growth in 2016, and I am cautiously optimistic that continued growth in 2017, coupled with an expanded investment in infrastructure by the federal government, could help both the top and bottom lines.
WF: 2016 was a good year for the industry. The Waste Connections’ purchase of Progressive Waste Solutions and the Initial Public Offering of Stock at Advanced Disposal were the big business stories. As an industry, we saw fairly stable fuel prices throughout the year; however, rising insurance and labor costs created some headwind for the industry.
MP: The industry started to see inflation creep into the cost structure—mostly in labor, but also in parts, supplies and insurance. In addition, drivers are becoming more difficult to recruit and hire. Inflation has also driven commodity prices up in the last quarter of 2016, especially in fiber. We are entering 2017 with a demand for recyclables increasing both domestically and overseas. This is a positive change for recyclers.
MR: In my opinion, we have seen a “perfect storm” in the collapse of the recyclables markets caused by a reduction in the prices for most commodities on the world stage. In 2016, this has resulted in a major decline in the prices received by local governments to support their curbside recycling programs. Private vendors operating MRFs have asked for changes to their operating contracts and there has been increased concern over the issue of contaminants. Increasingly, the issue of competitiveness continues to rear its head in many locations. Political decision makers are continuing to ask their public agency managers to provide services, quicker, cheaper and faster. Privatization continues to be considered by many communities as a means to provide competitive solid waste services.
AJ: I’ve noticed an increasing prevalence of integrated solid waste management facilities, combining disposal (primarily landfills) with co-located waste processing sites like material recovery, composting and/or conversion technologies. I see these as a positive addition, as they seem to be an efficient “one-stop shop” for all of a community’s waste management needs.
LW: The drive towards zero waste still seems to be the big buzzword. Everyone is trying to figure out how to get there; just about all the major cities are looking at that. They are looking at getting the waste out of the landfills and it has more do to with waste conversion than diversion. I think California, being in the forefront, has proven that there is a way to divert waste from the landfills with AB939. The big thing now is the technology and how to convert it. I also think the biggest thing in 2017 is that people are going to be following what happens with the city of Los Angeles and its privatization because it’s the biggest contract in history—you are going from a municipal owned fleet of trucks to private haulers. With 11 sections and seven haulers, the coordination for that is just phenomenal; it has taken years to get to this point, especially looking at the technology that it is going to take. Haulers had to incorporate food waste programs. That one contract is encompassing all of the technologies in the industry today and it’s going to be tested and will not be cheap. I think some of the larger cities are sitting back and waiting to see how successful the Los Angeles project will be. It will be a successful program in the long run, but will take longer because of the size and complexity of the project. In some areas it may be a little pricier than what it had been in the past and I think there will be new technologies that emerge out of that. It is going to be quite the undertaking.
Is there a particular type of technology that you saw that really stood out in 2016 in moving the waste and recycling industry forward?
DB: Although there has not been a specific technology that stands out, there is a more widespread understanding that analyzing all of the data collected by all aspects of waste operations can help operators be more efficient, safer and smarter about their activities. We know of several SWANA members with an emphasis on data management. A number of International Solid Waste Association (ISWA) members also have systems for collecting and analyzing this data. This is going to be a major area of focus at WASTECON in September 2017 in Baltimore, which is being co-located with the ISWA World Congress. The challenge in the U.S. and Canada is that data analysis of this type is not necessarily a skill set that many companies or sanitation departments are currently hiring for. I suspect successful employers in the waste sector will do so with increasing focus in future years.
WF: The most interesting advancements in technology was with optical sorting and the application of this technology at recycling centers. Alternative fuel vehicles also continued to attract a lot of attention.
MP: Technology has grown in route optimization software use in on-board tablets, enabling this technology to be more affordable for smaller operators. On-board computer diagnostics by all truck manufactures has allowed fleet maintenance to perform their own diagnostics and repairs, thus minimizing dependence on dealer repairs.
MR: Automated collection of MSW and single-stream recyclables appears to be a best practice for most community collection programs. When coupled with routing technology, they offer a cost effective means to reduce labor costs and fuel, as well as improve safety and cost efficiency. Our firm continues to see many agencies desiring to conduct automation feasibility studies to help evaluate the potential cost savings.
AJ: Fleet tracking capabilities continue to evolve. This is primarily due to improvements in GPS devices and mini-computers combined with reduced costs. Early generations of fleet trackers provided immense amounts of data that went largely unanalyzed. Next generation systems will take advantage of advances in “Big Data” analytical tools.
LW: There are two things that are going to be moving more to the forefront. Composting has gained some steam. I’ve stayed close to some of the grinding and shredding companies and have seen how active they are in the marketplace. Much of it could be the fact that a lot of the old equipment is going by the wayside because of the new emissions requirements. There also has to be some updating on the equipment, such as safety features, efficiency, fuel-efficient engines and motors, etc. We are also seeing many haulers who have historically never been involved in grinding and shredding looking into these operations to do it themselves or partnering with a company that is in that space. You are also seeing an improvement in sizing technology. It is becoming more of a commodity than it had been in the past. The other thing is automating the MRFs. There are several European companies that are coming into the marketplace marketing fully automated MRfs; there is literally no manual labor as far as processing goes. There will be more of that development coming down the pipe. Everyone is into these big mega-hub waste processing facilities, which are good for a city, but I think you are going to see some of the smaller cities banding together, moving towards a regional-type processing facility. Instead of spending $20, $30 or $40 million s on waste processing, they have the mini-MRF facilities in place that are priced in the $3 to $5 million range. I think you are going to see a little more emphasis on that this year; maybe even more into 2018 as the technology improves and advances.
Are there particular regulations that have been implemented or updated that you think have really affected the industry already or will in the coming year(s)?
DB: The U.S. EPA’s revised regulations governing greenhouse gas (GHG) emissions from landfills, which were finalized in August 2016, will impact the waste disposal industry. It expands the universe of landfills subject to EPA regulations, and increases the reporting requirements on all such landfills. Legal challenges have been filed about these new rules by SWANA and others, so it is unclear whether all of the rules will survive judicial scrutiny. As a general rule, we expect the Trump Administration to have a different approach to regulations than the Obama Administration.
MR: The new LFG regulations by EPA under its Clean Energy Initiative will potentially impact the landfill industry. Industry observers suggest that agency and private sector costs will increase as these regulations are fully implemented in the years ahead. Time will tell if the new administration will pull back these clean power regulations.
LW: Each state is different. It’s going to be hard to say with the new EPA regulations coming in with the Trump Administration. I don’t see any big laws coming as far as restrictions. I do know that California has to get to 75 percent diversion by 2020; they are currently at 50 percent. The only way to get there is to process green waste and food waste—the organics. Over the next several years on the federal level, we may see some of the direction change a little.
There has been a lot of focus on food waste management, organics and composting and waste diversion within the last year, what additional changes do you see happening in the future with regards to this area?
DB: Last year, I predicted that food waste would start to get “traction” in the next few years. I think we are well on our way. Local governments are exploring various models for diverting food waste, and I have attended more “food waste” sessions at industry events in 2016 than in any prior year. Multiple studies have been issued that provide guidance to food waste generators, governmental decision makers, waste services providers and others about how to divert food waste. Those reports, including SWANA’s Applied Research Foundation report and an influential report by ReFed, have been conversation drivers throughout 2016 and I think the high level of interest in this topic will continue in 2017 and beyond.
WF: Food waste and organics is a huge component of the overall waste stream. While some companies are having success managing these wastes, others are struggling. The companies that are struggling are having issues procuring a consistent and non-contaminated flow of materials or they are not able to sell or get rid of the compost material that is being produced.
MP: With landfill space still in abundance in our markets, this has not caught on yet. Disposal is still the cheaper option.
MR: Food waste and organics recycling is not uniformly being implemented across the county, mainly on the two coasts. It is still hard to say, in my opinion, if the increased cost of collection and disposal for organics will be implementable for most of the U.S. There are still major issues with odors and implementation costs for many areas.
AJ: I see the continuation of the rising trend in appearance of integrated waste management facilities. As these facilities mature, I expect we’ll see more ways that they can improve the efficiency of our waste management processes.
Are there any unique recycling or waste diversion programs you have seen growth in? What do you see for the future of landfills?
DB: Landfills continue to play a critical role in helping Americans handle the prodigious amount of waste generated each year. According to EPA’s most recent data, more than half of the municipal solid waste generated in the U.S. continues to be disposed of at landfills. These sophisticated disposal facilities are highly engineered and highly regulated, and bear little resemblance to the dumps of previous generations. I expect landfills will continue to become more efficient, and play a role in generating renewable energy through the recovery of landfill gas that helps reduce American dependence on imported fuel. At the same time, I also expect that recycling and diversion programs will continue to grow, both in number as well as number of units diverted from traditional disposal methods. Commodity prices are higher than they were at the beginning of the year, and I think the “recycling crisis” that some were concerned about in 2015 and early 2016 is over. SWANA supports using waste as a resource, and will continue to support research, education and advocacy that achieves that goal.
WF: Overall, there is still room for improvement with recycling programs, especially with commercial and multifamily. One interesting note from 2016 was when a few municipalities eliminated glass from their curbside recycling programs. This was a bold move but completely understandable given the challenge that many recyclers face in finding outlets for recovered glass. While everyone wants to see glass recycled, there are some market realities that need to be addressed. As for landfills, they continue to represent a cost-effective, environmentally sound option for the disposal of material that society no longer wants or has a need for.
MP: We are using more waste-to-energy as a good waste diversion program. The volumes going to landfills will continue to decline, but at a much slower rate as experienced in the recent years. Commercial recycling is a segment that is growing as a waste diversion. More commercial customers adopting environmentally friendly programs has increased significantly.
MR: Due to a difficult market, curbside collection of glass is being dropped by many agencies. Nonetheless, there a number of new glass recycling programs being implemented in several regions of the country with investments being made in glass separation technologies at MRFs. Landfills will continue to exist because their overall economics make sense for many areas of the country. I see more innovative technologies to optimize landfill design and improve leachate management, such as leachate evaporation.
AJ: I don’t see landfills going anywhere any time soon. Consider numbers in Dallas. More the 20 years after the advent of curbside recycling, they collect around 50,000 tons of recyclables each year. The landfill buries nearly 2 million tons of waste each year. Diversion from the landfill due to recycling pickups amounts to less than 3 percent of waste arriving at the landfill. In short, we’ve got a long way to go before any diversion program could account for the other 97 percent.
LW: Everyone wants to see landfills go away, which is driving the zero waste agenda. However, if you look at some of the rural areas, they have so much space and tipping fees are so cheap that landfills are going to be used for quite some time. I think over time you will see fewer landfills, but it does correspond to development and advancement of available technology.
Do you think that waste conversion is once again on everyone’s minds as a possible waste diversion process? Which conversion technologies are popular now and do you think they will continue to be so? For those companies that are thinking about implementing these technologies, what kind of funding strategies would you recommend?
DB: I have not seen widespread renewed interest in waste conversion technologies among resource management professionals. SWANA is working with the National Waste and Recycling Association to develop guidance for local government officials, who may continue to be approached by technology developers, to use in evaluating such technologies. We expect to release that in early 2017.
WF: There is no shortage of developers who are proposing “new technology” for the disposal of municipal solid waste. A variety of options are commonly mentioned, including plasma arc gasification, conversion to synthesis gas and bio fuel digesters. Municipalities and companies should be cautious and prepared to examine some very basic facts surrounding any proposed project. Examining waste conversion technology should involve an assessment of the environmental, technical and economic challenges associated with emerging technologies. Because many technologies have not gone beyond the drawing board, the laboratory or small scale pilot program, communities need to be very cautious and carefully evaluate new technologies, including a thorough review of detailed technical designs, environmental impacts, financial implications and the necessary permits and authorizations associated with any solid waste project. If the expertise does not exist in-house, municipalities or companies should consider hiring professional engineering firms and accounting firms to help in the review process.
MR: The market of new waste conversion technologies is rapidly evolving with new facilities being announced and operating data on pilot facilities beginning to be received to fill in the current gaps with operating history. These developments will eventually make the job of assessing the claims for these technologies more efficient and accurate. These assessments will also eventually help provide a clear unbiased tool that can be used in working through the decision-making process. By asking the right questions, decision makers can take steps to ensure that what is being promised is what they will receive. Receiving adequate offtake agreements for the generated power still remains a problem as the price for generated power has been reduced in recent years. Finally, the uncertainty of these projects still troubles investors who are concerned that these projects may be unable to pay back debt service.
AJ: In my experience, collection, processing and eventual reuse of landfill gas is the primary waste-to-energy conversion technology employed at a typical landfill. The most important consideration in financing WTE conversion facilities is the end-user market for the product. To be successful in the long term, the facility must be self-sustaining, which requires a customer base willing to pay for the end product (gas, heat, electricity, etc.). This means this kind of facility is most likely to succeed within the private sector, rather than municipally financed.
LW: A lot of it has to do with the regionalization and the type of waste they have. Is it a commercial area? Is there a lot of food waste? Are there organics? Is there a lot of green waste? So it is hard to say which technology is emerging more than the next. I still think we are several years away from figuring out what that might be because if there was one that was really emerging, everyone would using it. It is still a mixed bag.
I think that bond financing bundled with alternative type financing is best for funding strategies. Bond financing has, within the last 15 years, really driven a lot of these big companies to be able to afford these projects. That is still the preference out here because of the rates and flexibility in terms. There are many lenders out there trying to compete without bond money and with traditional financing. One of the reasons that has become popular is because the rates have been so low. Probably the most important things in the finance world when it comes to financing this equipment are the long-term contracts. When you have a guaranteed revenue stream coming in from a municipality—that is very valuable. That is what is driving a lot of the growth. The landscape is changing and a lot of that is driven by technology and its costs for the movement towards zero waste.
Since transitioning or purchasing alternative fuel vehicles is the “norm” for the industry, do you think this percentage of the industry who has already made this transition will continue to grow?
DB: The use of alternatively fueled waste collection vehicles continues to increase. For the past few years, I have explained to policymakers, the media and others that more than half of the new garbage trucks placed into service are fueled by natural gas or other alternative fuels. I was recently told that the number increased to about 60 percent through 2016. I expect this steady growth to continue, and if diesel prices increase dramatically, to accelerate.
WF: I think the use of vehicles powered by alternative fuel will continue to expand. We’ve had two years of lower diesel prices so some of the economic incentives to make the switch to alternative fuels have weakened. If fuel prices increase, you’ll see a more rapid move toward the use of natural gas and other alternative fuels.
MP: The initial capital investment required to convert to alternative fuels and a lower cost of diesel has discouraged and slowed this transition. Truck manufactures are experimenting with many different technologies for waste equipment from hybrid trucks, to compressed hydrogen, and further enhancements to existing diesel motors. If diesel prices continue to increase, look for these technologies to enter the marketplace sooner rather than later.
MR: I think there are still many agencies with less than 30 to 40 vehicles in their fleet holding back from purchasing alternative fuel vehicles. They lack the economy of scale to support the purchase in these communities. Further, alternative fuel vehicles require major investments in fleet departments to safely work on these vehicles.
AJ: This depends highly on innovation coming down the pipeline. Personally, I look to electric vehicles entering the truck fleet market as a milestone that will make the largest difference. Because fleet trucks burn so much more fuel than ordinary personal vehicles, they necessarily have a larger (by orders of magnitude) impact on overall vehicle emissions, and they can recoup the additional cost of manufacture much more quickly (see www.theverge.com/2015/2/27/8119981/electric-trucks-wrightspeed-ian-wright).
LW: Think about all of the companies that have already done the infrastructure change. They are tied into long-term contracts for gas. They have converted their fleets into alternative fuel or CNG. They have even built new maintenance facilities to accomodate the CNG trucks. You can’t repair a CNG truck like you do a diesel truck. I don’t think you are going to see a reverse in all of that. Maybe the growth might be a little slower on some of the emissions, but I think that has been in motion long enough that you are going to see a continuation of that over the next few years.
What are the current challenges for the industry?
DB: The waste sector faces a number of challenges. First, persuading customers that recycling and waste diversion aren’t free, and that the trucks, personnel and infrastructure associated with anaerobic digestion, composting, recycling, etc., cost money. We need residents and businesses to support funding and rate structures that make those programs sustainable. Also, the NIMBY (Not In My Backyard) syndrome makes siting new facilities, even recycling and composting sites, very difficult.
Second, the driver and mechanic shortage continues. While a handful of companies are taking pro-active steps to attract new candidates, I am increasingly concerned that 5 or 10 years from now, we may have difficulty getting enough qualified CDL drivers in all markets in all 50 states and in parts of Canada.
Third, the waste industry continues to be a high hazard employer. Waste collection is currently the 5th most dangerous occupation in the U.S., with a higher worker fatality rate than firefighters or police officers. The sector has two to three fatal accidents nearly every week, and dozens of major accidents each month. SWANA expanded its safety program in 2016 to address this challenge, and we will continue to focus on getting our safety resources into the hands of the men and women on the front line who need them (https://swana.org/safety.aspx). We need the owners of facilities that handle waste and resources—landfills, waste-to-energy facilities, transfer stations and MRFs—to distribute safety materials to their customers and, in particular, to small haulers. Why? Because small haulers have a disproportionate number of worker fatalities in the waste industry. We are working with a number of SWANA chapters, companies and local governments to distribute clear, concise and user-friendly safety messages. We are partnering with several organizations on safety, and urge anyone with an interest in improving safety in the waste industry—in either Canada or the U.S.—to contact us at [email protected].
WF: Safety continues to be the single most important issue that needs to be addressed in our industry. SWANA and the National Solid Waste and Recycling Association are talking about safety and rolling out programs to promote safety awareness. But, these programs need to be implemented. Both private and public organizations must aggressively work to create a culture of safety within their organizations. Bottom line is that far too many people in our industry are getting seriously hurt or killed on the job each year.
MP: Drivers, skilled technicians and labor. We need to make our industry more attractive to high school students as a career alternative to college. The youth need to know that they can have a great future in our industry. The industry must invest in a media campaign that will put a spotlight on what we do and how important of an occupation it is.
MR: The decline in commodity prices worldwide has impacted the prices for curbside recyclables. Communities with extensive curbside collection programs will have to develop long-term financing mechanisms beyond the landfill tipping fee. This may be community-wide assessments or fees to support these programs in good and bad times.
AJ: Combating the growth of the “throw-away” mentality: Americans live in a society where waste production constantly grows. Closely tracking this trend, and positively correlated, is resource consumption. In a finite world, this is clearly unsustainable. The rapid growth of recycling programs across the country show a clear understanding of the problems associated with growing waste production. However, to a large extent, this misses the point. Think about the three Rs of sustainability—there’s a reason “Reduce” comes first. It’s because it has the most impact toward achieving a sustainable system. Over the last several decades, technological advances have brought us to a place where we don’t expect objects to last. We just toss out our old possessions when new models are available. There are many forces at play that are beyond the scope of this discussion, but to achieve a truly sustainable waste management system, we have to begin by making choices that start with less consumption and result in less waste generation.
Also, helping communities understand the true value of their waste management infrastructure. Ask an average guy or gal on the street where their garbage goes (I mean specifically, not just “the dump”) and you’ll be hard pressed to find one that knows. Even less likely that any of them have ever visited it or know how well (or not well) it operates. To be blunt, as a society we don’t value our waste management infrastructure. In all the talk I’ve encountered lately about upgrading our nation’s infrastructure, I’ve heard nothing about waste. When I think about this, I wonder how many people know how vital waste management is to their own body. It’s among the most energy-intensive functions of your many biological systems, relying of proper operation of your kidneys, liver, lungs, intestines and skin (to name a few). If any one of these fails, you could be dead before you know it. Communities should value their waste management infrastructure as much as our bodies do, and should dedicate sufficient resources to ensuring its proper operation.
LW: For the entire industry, the main challenge is to get to zero waste—everyone is really trying to figure out the most efficient way to get there. You will also see the continuation of larger companies acquiring more of the smaller companies. Equity groups will also enter the market by buying some of the medium sized companies. This will be a continuing trend because they are all looking for market share.
Considering the recent change in presidential administration, how do you think this will affect the industry? What kind of advances/changes in technology or regulations do you see coming?
DB: The Trump Administration will likely affect the waste industry in a number of ways and it’s too soon to predict if, on balance, they are more positive or negative. Proposals to reduce tax rates and regulations may help some entities reduce costs. Increased economic growth would help most companies. If the federal budget deficit increases, interest rates will rise, making it more costly for companies and local governments to borrow money. Obviously, we are carefully monitoring the incoming Administration’s position on climate change. We are also concerned about trade policy. If the new Administration were to get into a trade war with China, it could affect a significant percentage of the recyclables generated in the U.S., which go to China. China shutting the door on those materials could have a dramatic effect on our recycling efforts, impact operations and would likely lead to reduced prices. It would make Operation Green Fence seem like a low impact event by comparison.
WF: The new administration has promised to create a business friendly environment that will hopefully result in the growth of new businesses and the expansion of existing industries. As we know, waste generation is a function of population growth and business formation. Therefore, if business expands across the U.S., we should see an uptick in waste volumes. Additionally, the promise of lower personal taxes and corporate taxes would free up cash that can be spent to further bolster the U.S. economy resulting in great waste volumes.
MP: The incoming administration has touted itself as being pro-business, lowering taxes and increasing infrastructure spending. These policies in the past have always yielded more demand on the waste and recycling industry. While there are some downsides with a rapid growth rate, the upside for small business seem to look very attractive. If this philosophy trickles down to all levels of government, we could be in for a very explosive next few years in our industry. Allowing the small business to keep more of its money to invest is always a good thing; it breeds efficiency and innovation—the heart of America!
MR: Solid waste management is, oftentimes, a stepchild to other more pressing national problems. However, with this new administration, I think we are going to see major pullbacks in global warming initiatives pushed by the Obama administration. We may see less of an interest in methane reduction, which may impact investment by LFG developers and individual agencies.
AJ: Regarding the waste management industry, the most important and uncertain issue in the new administration will be the impact of a likely major shakeup at the EPA. The current choice to head the EPA has expressed skepticism regarding the human impact on climate change. It seems likely that during this administration, efforts will be made to rollback legislation concerning greenhouse gases related to waste operations, particularly those regarding landfill emissions. Furthermore, the signaling coming from top administration officials indicates a penchant for deregulation of industry and corporations, which could also have a major impact on the waste industry, especially smaller businesses in the field.
LW: Considering what he has on his agenda, I think in the first year we won’t see a whole lot of involvement in the waste industry. On the environmental side, you are going to see a lot with the oil sector. There are a lot of conversations about getting away from coal and oil and going toward solar and alternative fuel, but I don’t think it is going to affect this industry a whole lot in 2017. That may change for 2018 and 2019 once we get into Trump’s term, but I do think some of the other things are going to be addressed and that has to do with jobs in other industries coming first. Some of the federal regulations with the EPA could affect the trash industry, but I don’t think right now it’s high on the list; there are other pressing issues.