Price Forecast: Solid Waste Collection & Disposal Services

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  • Tags : Facilities Management | Solid Waste Collection & Disposal Services | Price trend | Price forecast | Procurement research | Category market forecast

Recent Price Trend - Solid Waste Collection & Disposal Services


The average price of solid waste collection and disposal services has been increasing at an estimated average rate of 1.6% annually from 2014 to 2017, although price increases have varied somewhat among service providers. Recent price growth can largely be attributed to the rising cost of complying with new and changing regulations, such as landfill capping standards and changes to the Clean Air Act of 1970. These changes have been forcing haulers to invest in new collection trucks and other related operating equipment and machinery, thereby increasing their operating costs.

In addition, rising demand has been driving price growth. Businesses and households are among the largest buyer segments for solid waste collection and disposal services. During the past three years, growth in the number of businesses and households has led to higher levels of solid waste generation and demand for market services. Furthermore, rising construction activity has been pushing up demand for the collection and disposal of C&D debris during the period. Service providers have expanded their operations to meet heightened demand, encouraging them to raise prices for solid waste collection and disposal services.

Fortunately for buyers, falling transportation costs have been partially offsetting the impact of rising demand. The price of gasoline has been falling due to oversupply in the three years to 2017. The decrease in gasoline prices has resulted in lower fuel costs for haulers and thus a reduction in the fuel surcharges passed to buyers. Moreover, many national operators have been investing in more economical vehicles to reduce their sensitivity to volatile gasoline prices, which has further reduced transportation costs and limited price growth.

Although price volatility varies among local, regional and national service providers, it has remained low on average. Buyers benefit from low price volatility because it makes it easier for them to properly budget for purchases. Low price volatility has somewhat reduced the negative effects of price increases on buyer power. To further mitigate the impact of rising prices, buyers are encouraged to establish long-term contractual agreements now to lock in current rates.

 



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