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

Post-consumer plastic recycling rates continue strong growth

October 15, 2014 9:18 am ET

Post-consumer plastic bottle recycling tonnage increased by another 4.3 percent last year, continuing what is now a growth spurt that's lasted more...    More

Market Reports

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 million dollar 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

Plastics Caps & Closures Market Report

The annual recap of top trends and future outlook for the plastics caps & closures market features interviews with industry thought leaders and Bill Wood’s economic forecast of trends in growing end markets. You will also gain insight on trends in caps design, materials, machinery, molds & tooling and reviews of mergers & acquisitions.

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

More Events