Waste Management looks improve recycling profits

By Jim Johnson
WASTE & RECYCLING NEWS

Published: March 11, 2013 1:24 pm ET
Updated: March 11, 2013 1:26 pm ET

Related to this story

Topics Recycling

HOUSTON — In Waste Management Inc. parlance, it's called a business improvement plan and it involves taking a hard look at the profitability of each trash collection customer.

Customers that weren't meeting profit expectations were given price increases or they were allowed to walk away.

Now with the decrease in recycling commodity prices during the past year, as well as an increase in contamination within the different material streams, Waste Management is looking to do the same thing on the recycling side of the business.

"Given where commodity prices have been over the last year, and increasing complexity in contamination levels of materials received, it's time for us to do something similar with our recycling customers," CEO David P. Steiner said on a recent conference call with stock analysts. "As contracts come due, we will likely need to implement double-digit price increases on some customers to return them to profitability."

Waste Management, Steiner said, found that about 20 percent of its customers on the solid waste collection side were not profitable when the company examined that portion of its business.

"I think it's a fundamental premise of pricing that when you've got a customer that's underwater, you can be a little bit more aggressive trying to raise their price, right? Because, if they leave you, you are not overly disappointed when you're losing an unprofitable customer," Steiner said.


Comments

Waste Management looks improve recycling profits

By Jim Johnson
WASTE & RECYCLING NEWS

Published: March 11, 2013 1:24 pm ET
Updated: March 11, 2013 1:26 pm ET

Post Your Comments


Back to story


More stories

Image

Europe puts its 'Circular Economy' recycling effort on hold, for now

December 18, 2014 12:28 pm ET

The European Commission has withdrawn its Circular Economy initiative from its 2015 work program, and will instead replace it with “a new, more ...    More

Image

New extruders, repelletizer to improve production for InterGroup

December 17, 2014 6:00 am ET

InterGroup International Ltd. will install new, larger extruders and repelletizers at all three of its plastic scrap recycling locations in 2015.    More

Image

Investments allow UK's Jayplas to keep recycling supply chain at home

December 17, 2014 9:32 am ET

Corby, England-based plastics recycler Jayplas has announced the completion of a new extrusion and printing plant, together with a new packaging...    More

Image

UK recycler Eco Plastics sold to German investment group

December 12, 2014 11:19 am ET

Recycler Eco Plastics has been bought by Aurelius AG, a Grünwald, Germany-headquartered investment firm, for an undisclosed sum.    More

Petoskey Plastics using grant to expand recycling operations

December 10, 2014 2:07 pm ET

The company will use the $175,000 grant to help purchase additional sorting equipment at its facility in Indiana.    More

Market Reports

Flexible Packaging Trends in North America

Our latest RESEARCH report examines trends in FLEXIBLE PACKAGING impacting the North American market including a review of economic conditions, key drivers of growth, materials pricing, M&A activity, sustainability challenges and the outlook for 2015.

Learn more

Plastics Recycling Trends in North America

This report is a review and analysis of the North American Plastics Recycling Industry, including key trends and statistics based on 2013 performance. We examine market environment factors, regulatory issues, industry challenges, key drivers and emerging trends in post-consumer and post-industrial recycling.

Learn more

Plastics in Mexico - State of the Industry Report

This report analyzes the $20 billion plastics industry in Mexico including sales of machinery & equipment, resins and finished products.

Our analysts provide insight on business trends, foreign investment, top end markets and plastics processing activity. The report also provides important data on exports, production, employment and value of plastics products manufactured.

Learn more

Upcoming Plastics News Events

January 14, 2015 - January 14, 2015Plastics in Automotive

February 4, 2015 - February 6, 2015Plastics News Executive Forum 2015

June 2, 2015 - June 3, 2015Plastics Financial Summit - Chicago 2015

September 16, 2015 - September 18, 2015Plastics Caps & Closures - September 2015

October 27, 2015 - October 29, 2015Plastics Financial Summit - New York - 2015

More Events